Big relief for Telangana palm oil farmers as Centre hikes import duty
In response to the request by Telangana Minister Tummala Nageswara Rao, the Union government has issued an order raising the import duty on crude palm oil from 5.5 to 27.5 percent.
Hyderabad: In response to the request by Telangana Minister Tummala Nageswara Rao, the Union government has issued an order raising the import duty on crude palm oil from 5.5 to 27.5 percent.
This decision, which comes after the Minister’s appeal to Union Agriculture Minister, Shivraj Singh Chouhan, is expected to benefit domestic palm oil farmers, especially in Telangana.
Earlier, the removal of import duties on crude palm oil had led to a significant drop in palm oil prices, affecting both existing farmers and those considering new palm oil cultivation. In an effort to counter this, Minister Tummala had urged the central government to reinstate import duties, ensuring better prices for farmers and promoting the expansion of palm oil cultivation in the state.
Tummala Nageswara Rao, along with palm oil farmers, raised these concerns during a recent visit by Union Agriculture Minister Shivraj Singh Chouhan. Following their appeal, on September 13, the Union government officially increased the import duty on crude palm oil. As a result, the price of palm oil fruits is expected to rise from the current ₹14,392 per tonne by at least ₹1,500 to ₹1,700, potentially exceeding ₹16,500 per tonne.
This increase in import duty will benefit approximately 9,366 palm oil farmers across Telangana, where 44,400 acres of palm oil plantations yield 2.80 lakh tons of palm oil fruits annually. Furthermore, the rise in fruit prices is likely to encourage more farmers to take up palm oil cultivation.
The Minister highlighted that India spends around ₹80,000 crore annually on palm oil imports, and by increasing import duties, domestic farmers, particularly in Telangana, will gain significant advantages. He also emphasized the government’s focus on achieving self-reliance in edible oil production through various initiatives, including the National Mission on Edible Oils-Oil Palm (NMEO-OP).
Currently, the Telangana government is working to expand palm oil cultivation across 31 districts, having granted permissions to 14 companies for this purpose. An estimated 2 lakh acres of palm oil cultivation has already been brought under cultivation in Telangana.
In a release here on Saturday, Minister Tummala Nageswara Rao thanked Union Minister Shivraj Singh Chouhan for taking a decision in favour of palm oil farmers.
