Oil palm zones face cancellation over missed targets: Tummala Nageswara Rao

Hyderabad: State Agriculture Minister Tummala Nageswara Rao warned that oil palm company zones in Telangana would be cancelled if cultivation targets continue to be missed. He issued the warning during a high-level review meeting held on Thursday at the Secretariat.

The meeting included officials from Telangana Oilfed, Markfed, and seed production agencies. Expressing dissatisfaction with the current pace of oil palm expansion, Tummala pointed out that several private players had already lost zones in Karimnagar, Asifabad, Warangal, and Hanamkonda due to poor performance. These zones were transferred to Oilfed. He said Oilfed would also face cancellation if it fails to deliver.

Subsidies, staffing, and processing units to support expansion

To improve the sector’s performance, the Minister directed Oilfed to hire staff through outsourcing and include oil palm tools under the farm mechanisation scheme. He also ordered the creation of custom hiring centres. In addition, he called for steps to cut cultivation costs.

Tummala stressed the urgent need to fast-track the processing units at Kallurugudem and Beechupally. He further urged officials to explore palm waste-based by-product industries to improve value-addition and income potential.

To raise yields, he instructed departments to supply bio-fertilisers—such as Trichoderma, VAM, magnesium, and sulphur—at a 50% subsidy rate.

Tummala said he had written to Prime Minister Narendra Modi and Union Ministers seeking an increase in palm oil import duty from 16.5% to 44%. He said this step was necessary to protect domestic farmers from cheap imports.

On grain procurement, he asked Markfed to call tenders for jowar and maize immediately. He warned against prolonged storage that could cause losses. Furthermore, he asked the Seed Development Corporation to match private seed producers in quality. He advised them to win back farmer confidence through better outreach.

Senior officials from key agriculture bodies attended the review.