As it emerges as a leader in palm oil cultivation with an acreage of nearly one lakh hectares, the Telangana Government has appealed to the Union Government to restore the 44 per cent import duty on crude palm oil to promote the domestic production of the edible oil.

The State Government pointed out that when the duty rate was 44 per cent in 2018, oil palm farmers witnessed good prices. But currently the duty rate has fallen to 16.50 per cent from 27.50 per cent last year.

“The reduction in the basic Custom Duty on Crude Palm Oil (CPO) had an adverse impact on the domestic CPO prices. This, in turn, has led to the fall in oil palm prices, impacting the incomes of the farmers,” Telangana Agriculture Minister Tummala Nageswara Rao said in a letter to Union Minister for Agriculture and Farmers Welfare Shivraj Singh Chouhan.

He wanted the Union Minister to discuss with the relevant Ministries to ensure the duties are increased back to 44 per cent.

“At a time when the implementation of the National Mission on Edible Oils - Oil Palm (NMEO-OP) is at a crucial phase, the country should consider increasing the duties on CPO to 44 per cent. It will help the country develop the domestic production of CPO,” he said.

“We now lead the country in the oil palm plantation with a share of 36 per cent in the country’s overall acreage. We are targeting to add 34,000 hectares more in 2026-27,” he said.

He pointed out that oil palm cultivation has assumed strategic importance in the backdrop of growing demand for edible oils.

“This crop offers better yields and returns to farmers when compared to the oilseed crops. Once you establish the plantation, it will give yields to up to 30 years. On average, they get an income of ₹2-3 lakhs an acre,” he said.

The price of fresh fruit bunch (FFB) stands at ₹23,500 per tonne.

Published on May 31, 2026