Agriculture ministers from southern states will meet in Hyderabad on September 18 to discuss the problems faced by oil palm farmers and push the Centre for stronger support. Telangana Agriculture Minister Tummala Nageswara Rao announced the meeting during a sapling distribution programme in Aswaraopeta of Bhadradri Kothagudem district. Ministers from Telangana, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala are expected to take part in the meeting. The states want to present a united front, especially at a time when global edible oil prices are putting pressure on domestic oil palm growers.
What the states want?
Better price for farmers: The states are seeking a guaranteed price for Fresh Fruit Bunches (FFBs). They are proposing a minimum benchmark of Rs 25,000 per tonne to protect farmers when market prices fall.
Higher import duty: Southern states are also unhappy with the lower import duty on crude palm oil. They argue that cheaper imports hurt Indian farmers and want the duty raised to 44%.
More oil palm cultivation: India currently has around 15 lakh acres under oil palm cultivation. The larger goal is to expand this to about 70 lakh acres to reduce India's dependence on imported edible oils.
Telangana's target: Telangana plans to add another 6 lakh acres of oil palm cultivation over the next three years. The state is also looking to expand processing facilities alongside cultivation.
Why farmers need support?
Oil palm can offer good returns, but farmers have to wait around 3–4 years before the trees start producing fruit. This makes the initial years financially difficult. Farmers also face sharp price fluctuations. When cheaper imported edible oils enter the market, domestic prices can fall and directly affect their earnings. Another major challenge is processing. Fresh Fruit Bunches need to reach processing mills quickly after harvest, as they can deteriorate within about 24 hours. The southern states therefore want a coordinated approach — from better prices and import protection to more processing units near farms. India imports a large share of its edible oil requirements every year. The Centre's National Mission on Edible Oils–Oil Palm (NMEO-OP) is aimed at increasing domestic production and encouraging farmers to shift from crops such as water-intensive paddy.
The September 18 meeting is expected to focus on making that transition safer and more profitable for farmers. If the southern states manage to stay united, they could put stronger pressure on the Centre for long-term support on prices, imports and processing infrastructure.