Metro India News | hyderabad

Telangana Agriculture Minister Tummala Nageswara Rao has appealed to Union Finance Minister Nirmala Sitharaman to restore the import duty on crude palm oil to 44%, expressing concern over the recent reduction in duty that could severely affect domestic oil palm farmers.

In a letter addressed to the Union Minister, Tummala strongly objected to the Centre’s decision to cut import duty on crude palm oil from 27.5% to 16.5% as of May 31. He called for the reversal of this decision and a return to the earlier 44% rate, stating that the price drop resulting from cheaper imports will discourage farmers and jeopardise the goals of the National Mission on Edible Oils – Oil Palm (NMEOP), a Central initiative.

He highlighted that Telangana has emerged as a leader in palm oil cultivation in the country, with efforts underway to expand cultivation to 1.25 lakh hectares. Already, 78,870 hectares have been brought under cultivation involving 56,231 farmers. For the current financial year, the state aims to cultivate 50,000 hectares more. So far, 18,185 farmers have registered to grow oil palm on 26,597 hectares.

Tummala warned that the reduced import duty may demoralize farmers and negatively impact the long-term prospects of domestic oil palm production. He emphasized that the Centre’s policy shift, though possibly intended to stabilize market prices, could result in long-term setbacks for Indian agriculture, especially at a time when the government is actively encouraging oil palm cultivation.