- Palm oil Rules Enforced
- Non-performing Firms Shifted to State
Article Today, Hyderabad:
The Telangana government has taken strict action against private oil palm companies that failed to meet mandated cultivation and infrastructure targets. Acting on the directions of Chief Minister Revanth Reddy, the Agriculture Department cancelled several company-allotted zones for poor performance. The decision aims to protect farmers and accelerate oil palm expansion in the State.
Rules Not Followed
Under the Telangana Oil Palm Act, companies are required to establish processing units within 36 months of signing agreements with farmers. They must also develop nurseries and expand cultivation at the field level. However, several firms did not comply despite repeated warnings. Therefore, the government concluded that regulatory action was unavoidable.
Zones Withdrawn
The Agriculture Department found serious lapses by Lohia Edible Oils, Matrix Palm Oil Industries and KN Biosciences. In Karimnagar district, Lohia Edible Oils achieved cultivation on only 6,721 acres against an allotted target of 44,527 acres. Similarly, in Komaram Bheem Asifabad district, Matrix Palm Oil Industries covered just 1,606 acres out of 30,552 acres. In Hanumakonda and Warangal districts, KN Biosciences reached only 2,136 acres against a target of 14,000 acres.
Shift to Oil Fed
Following these findings, the government cancelled the underperforming zones and transferred them to Telangana Oil Fed. Officials said the move was intended to restore farmer confidence. As a government-backed body, Oil Fed is expected to ensure timely procurement, processing capacity and stable pricing.
Minister’s Assurance
Agriculture Minister Tummala Nageswara Rao stated that farmer welfare remained the government’s priority. He said delays in setting up processing units had directly affected growers, who were unable to sell fresh fruit bunches on time. Therefore, only capable and accountable agencies would be allowed to operate in oil palm zones.
Expansion Gains Pace
Meanwhile, the State has reported steady progress in oil palm cultivation. Telangana currently has oil palm plantations spread over 2.82 lakh acres. Since the change of government, nearly 98,976 acres have been added. In addition, financial assistance amounting to Rs. 297.88 crore has been directly credited to the bank accounts of 53,709 farmers.
Import Reduction Goal
The programme is being implemented under the National Mission on Edible Oils with the objective of reducing India’s dependence on imported cooking oils. State officials said the latest enforcement action sends a clear message that farmer interests would not be compromised and that performance would remain the sole criterion for participation.
