Import duty cut jolts Telangana palm oil growers

ekalavya mallepalli | Hyderabad 

Palm oil farmers in Telangana are reeling under pressure following the Central Government’s recent decision to slash import duties on crude edible oils, including palm oil, from 27.5% to 16.5%. The nearly 40% reduction, effective from May 30, aims to control inflation and reduce cooking oil prices, but it has left domestic cultivators facing significant financial distress.

Telangana, a leading state in oil palm cultivation, boasts over 56,000 farmers growing the crop on approximately 2.43 lakh acres. Key cultivation areas include Siddipet, Medak, Nalgonda, Khammam, Bhadradri Kothagudem, and Vikarabad. Earlier this year, the state government set the procurement price of palm oil at Rs 20,500 per tonne.  However, market prices have since fallen to Rs 18,000 per tonne and may decline further due to an influx of cheaper imports.

The policy shift has triggered widespread discontent among farmers. Sri Ram Reddy, president of the Federation of Farmers Associations Telangana, said, “This is nothing short of a betrayal. The government encouraged us to take up oil palm cultivation, promising better income and market stability. Farmers invested crores collectively, some even mortgaging land or taking loans. And just when we expected returns, they opened the floodgates to cheap imports. How can local growers compete with international prices when input costs here are so high?”

He further added, “This isn’t just a price issue—it’s about the survival of palm oil farming in Telangana. Without a strong policy to support domestic producers, we are at the mercy of global fluctuations. The Centre must immediately review and restore import duties to safeguard our livelihoods.” The absence of government-owned processing facilities has worsened the crisis. Farmers are dependent on private refineries, where they face delays and poor price realization.

With prices plummeting and losses mounting, farmer groups are planning state-wide protests, including dharnas and road blockades. They are demanding that the Union Government reverse the duty cut and implement protective measures to ensure sustainable returns for domestic palm oil cultivators.