- Allegations of Corruption Unveiled
- Farmers suffer huge losses due to defective seedlings
- Official’s role in importing low-quality seeds under scanner
- Demand for compensation and action against corrupt officials
Article Today, Hyderabad:
An individual implicated in irregularities at an Oilfed nursery, despite an internal inquiry confirming wrongdoing and a directive for a Rs.40 lakh recovery, has allegedly been promoted to a key position within the Hyderabad-based Oilfed organization. Sources suggest that this person, now considered highly adept at carrying out illicit activities, enjoys the patronage of certain officials and influential figures.
Growers’ Federation Outraged…

The Aswaraopeta Oil Palm Growers Association has voiced strong objections to this situation. The federation questions the rationale behind entrusting a significant role to an employee against whom disciplinary action and financial recovery were recommended for nursery-level misconduct. Furthermore, the association alleges that the same official played a crucial role in the import of approximately Rs.83 lakh worth of substandard foreign seeds, contributing to the financial distress of Oilfed and causing losses for farmers.
The federation demands a thorough investigation into the role of intermediarie in the foreign seed procurement process and calls for a clean-up of the system. They contend that the collusion of private entities and certain officials is weakening Oilfed, severely impacting oil palm farmers.
Compensation Demand for Farmers…
The growers’ association is also demanding compensation from Oilfed for farmers who suffered losses due to curled seedlings. They expressed dismay over the Oilfed Chairman’s initial acceptance of the damage after field inspections, followed by his statement citing the absence of legal provisions for compensation. The association urges the state government to intervene and facilitate compensation for the affected farmers.
Concerns Over Replanting Advice…
The federation criticized Oilfed’s suggestion to farmers with curled plants to remove them and plant new seedlings. They argue that replacing plants in 5 to 8-year-old plantations would hinder the growth of new plants due to shade. They also pointed out that 30-month-old seedlings are unsuitable for planting. The chairman’s reported statement that no compensation would be provided if curled seedlings reappear has further angered the farmers. The association has appealed to farmers to wait until the government formulates a clear policy on this issue.
Minister’s Promise Unfulfilled?
The association reminded everyone of Minister Tummala Nageswara Rao’s assurance to secure full compensation from companies for all types of defective plants. However, they lament that the Oilfed MD and Chairman are citing legal limitations. The affected farmers, including Puchakayala Somireddy, Chakradhar Reddy, and Chelikani Suryarao, are appealing to Minister Tummala to take special initiative and amend the oil palm act to ensure compensation.
Contractors Held Responsible…
Maheshwar Reddy, President of the Aswaraopeta Oil Palm Growers Association, stated that the contractor system in Oilfed nurseries was exploited, leading to the distribution of curled seedlings to farmers between 2015 and 2022. He demanded an inquiry into the concerned contractors and officials, their removal from Oilfed, and the recovery of losses from them.

He also called for the abolishment of the contractor system in all nurseries and a return to Oilfed managing its own nurseries, as was the practice previously. Reddy also expressed disappointment over the lack of action taken on previous complaints filed with the Aswaraopeta and Sattupalli police stations regarding the unauthorized sale of nursery plants.