The Telangana Government is pressing the Union Government to bring back 44% import duty on crude palm oil (CPO) to support local production . This request follows the state's rise as a key player in palm oil farming, with almost 100,000 hectares now given over to the crop .
In a letter to Union Minister for Agriculture and Farmers Welfare,Shivraj Singh Chouhan, Telangana's Agriculture Minister Tummala Nageswara Rao pointed out negative impact of the recent duty cut. The import duty has dropped from 27.50% last year to 16.50% now, hurting local CPO prices and farmers' earnings .
“The reduction in the basic Custom Duty on Crude Palm Oil had adverse impact on the domestic CPO prices,” Rao said. He asked Chouhan to talk with the relevant ministries about restoring the duty to where it was.
Rao noted that when the duty was at 44% in 2018, oil palm farmers enjoyed better prices. He argued that raising the duty is necessary while the National Mission on Edible Oils - Oil Palm (NMEO-OP) is in play. “It will help the country develop domestic production of CPO,” he said.
Telangana now makes up 36% of India's total oil palm area and plans to add another 34,000 hectares by 2026-27. Rao emphasized the importance of oil palm cultivation as demand for edible oils grows. He pointed out that this crop offers better returns than traditional oilseed crops, with established plantations providing income for up to 30 years.
Farmers can make between ₹2-3 lakhs per acre,with fresh fruit bunch (FFB) prices currently at ₹23,500 per tonne. The state's push for higher duties is part of a larger plan to boost local production and stabilize prices amid changing market conditions.
