Andhra Pradesh leading as palm oil producer: myth or reality?
OIL & GAS

Andhra Pradesh leading as palm oil producer: myth or reality?



Andhra Pradesh over the years has managed to capitalise on its abundance of palm cultivation. For oil palm farmers this meant they saw a lot of profit without having to go through middlemen to sell their produce. It’s certainly been a win-win for farmers as the State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, being cultivated by 1.32 lakh farmers in eight districts. A memorandum of understanding (MoU) has been signed between the state government of Andhra Pradesh (AP) and Godrej Agrovet (GAVL), one of India's top diversified agribusiness companies, on the sidelines of the Andhra Pradesh Global Investors Summit (APGIS) 2023.

Oil palm cultivation has already increased significantly in the state. According to the earliest data that is currently available, three provinces were growing oil palm in 1993. With 14051 tonnes, Kerala had the highest yield of fresh fruit bunches, far outpacing Andhra Pradesh's 58 tonnes. With a yield of 194,000 tonnes, Andhra Pradesh had the highest in the nation in 2007–08. This was attributed to the crop's promotion by the provincial government.Of all the states today, Andhra Pradesh has the most land under oil palm cultivation (0.17Mha), with a yield of 1.38 million tonnes of fresh fruit bunches.

However, despite maintaining a reputation of being a leading palm oil producer over time many farmers started switching to conventional crops like corn, paddy, and other staples instead of palm oil. There are many important factors and problems that these farmers had to deal with on a daily basis that have contributed to their lack of interest in growing palm oil.

The maximum average rainfall that Andhra has ever experienced was 1018 mm in the year 2013. The recommended annual average rainfall for palm cultivation is 2500 mm.

In accordance with the MoU, GAVL's oil palm division will invest an estimated INR 100 crores to build an Edible Oil Refinery & Solvent Extraction Plant manufacturing facility. Godrej Agrovet intends to use the proposed facility for full operations by 2025–2026. With the help of a cogeneration plant, the factory will be self-sufficient in terms of power needs. The extension team at 10 Godrej Samadhan centers will provide support for palm oil farmers. In fact, Telangana has set an ambitious goal of expanding palm oil plantations to 20 lakh acres in the state. The state government is aggressively promoting palm oil plantations to reduce dependence on imported oil.

A 1.12 lakh hectare area in the State is proposed to be covered under the oil palm mission. The State has been given the following year-by-year targets under NMEO-OP: 15,000 hectares in 2021–22, 20,000 hectares in 2022–23, 24,000 hectares in 2024–25, and 28,000 hectares in 2025–26.The minister claimed that 8,801 hectares of land were planted with oil palms after spending Rs 30.60 crore on an oil palm development program in 2021. With the money allocated for 2021–2022, 10,561 hectares of oil palm have been planted, and an additional 14,567 hectares have been identified for oil palm cultivation, out of the 15,000 hectares that were originally planned.

Currently, Godrej is present in Khammam and Bhadradri Kothagudem districts, which make up 10 mandals in Telangana. It will use digital resources like farmer apps, the Sapling portal, image-based crop advisory services, satellite/drone tracking of cropland, etc. in the area to increase productivity. Oil palm plantations produce 19.81 tonnes FFB (fresh fruit bunches) on average per hectare. The state produced 2.40 lakh tonnes of crude palm oil in 2020–2021. In the state, there are 13 oil palm processing facilities with a 461 metric ton per hour FFB crushing capacity. Earlier, Hyderabad-based Gemini Edibles and Fats India (GEF) had announced to set up an oil refinery in Telangana with Rs.400 crore.

What’s the fate of palm oil production in Andhra Pradesh?
In a meeting with representatives of the Horticulture Department on Wednesday, State Agriculture Minister K Kanna Babu gave them instructions to promote oil palm cultivation as an alternative to paddy, particularly in dry land areas.

According to an official statement from the minister, AP now leads the nation in oil palm cultivation, with an area of 1.81 lakh hectares spread across eight districts of the state.

19.81 tonnes of Fresh Fruit Bunches were produced per hectare by as many as 1.32 lakh farmers who cultivated oil palm.

According to the minister, the state produced 2.40 lakh tonnes of crude palm oil in 2020–21.

According to Kanna Babu, the state government invested Rs 30.60 crore in the Oil Palm Development Program in 2020–21, totaling 8,801 hectares.

Andhra Pradesh over the years has managed to capitalise on its abundance of palm cultivation. For oil palm farmers this meant they saw a lot of profit without having to go through middlemen to sell their produce. It’s certainly been a win-win for farmers as the State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, being cultivated by 1.32 lakh farmers in eight districts. A memorandum of understanding (MoU) has been signed between the state government of Andhra Pradesh (AP) and Godrej Agrovet (GAVL), one of India's top diversified agribusiness companies, on the sidelines of the Andhra Pradesh Global Investors Summit (APGIS) 2023. Oil palm cultivation has already increased significantly in the state. According to the earliest data that is currently available, three provinces were growing oil palm in 1993. With 14051 tonnes, Kerala had the highest yield of fresh fruit bunches, far outpacing Andhra Pradesh's 58 tonnes. With a yield of 194,000 tonnes, Andhra Pradesh had the highest in the nation in 2007–08. This was attributed to the crop's promotion by the provincial government.Of all the states today, Andhra Pradesh has the most land under oil palm cultivation (0.17Mha), with a yield of 1.38 million tonnes of fresh fruit bunches. However, despite maintaining a reputation of being a leading palm oil producer over time many farmers started switching to conventional crops like corn, paddy, and other staples instead of palm oil. There are many important factors and problems that these farmers had to deal with on a daily basis that have contributed to their lack of interest in growing palm oil. The maximum average rainfall that Andhra has ever experienced was 1018 mm in the year 2013. The recommended annual average rainfall for palm cultivation is 2500 mm. In accordance with the MoU, GAVL's oil palm division will invest an estimated INR 100 crores to build an Edible Oil Refinery & Solvent Extraction Plant manufacturing facility. Godrej Agrovet intends to use the proposed facility for full operations by 2025–2026. With the help of a cogeneration plant, the factory will be self-sufficient in terms of power needs. The extension team at 10 Godrej Samadhan centers will provide support for palm oil farmers. In fact, Telangana has set an ambitious goal of expanding palm oil plantations to 20 lakh acres in the state. The state government is aggressively promoting palm oil plantations to reduce dependence on imported oil. A 1.12 lakh hectare area in the State is proposed to be covered under the oil palm mission. The State has been given the following year-by-year targets under NMEO-OP: 15,000 hectares in 2021–22, 20,000 hectares in 2022–23, 24,000 hectares in 2024–25, and 28,000 hectares in 2025–26.The minister claimed that 8,801 hectares of land were planted with oil palms after spending Rs 30.60 crore on an oil palm development program in 2021. With the money allocated for 2021–2022, 10,561 hectares of oil palm have been planted, and an additional 14,567 hectares have been identified for oil palm cultivation, out of the 15,000 hectares that were originally planned. Currently, Godrej is present in Khammam and Bhadradri Kothagudem districts, which make up 10 mandals in Telangana. It will use digital resources like farmer apps, the Sapling portal, image-based crop advisory services, satellite/drone tracking of cropland, etc. in the area to increase productivity. Oil palm plantations produce 19.81 tonnes FFB (fresh fruit bunches) on average per hectare. The state produced 2.40 lakh tonnes of crude palm oil in 2020–2021. In the state, there are 13 oil palm processing facilities with a 461 metric ton per hour FFB crushing capacity. Earlier, Hyderabad-based Gemini Edibles and Fats India (GEF) had announced to set up an oil refinery in Telangana with Rs.400 crore. What’s the fate of palm oil production in Andhra Pradesh? In a meeting with representatives of the Horticulture Department on Wednesday, State Agriculture Minister K Kanna Babu gave them instructions to promote oil palm cultivation as an alternative to paddy, particularly in dry land areas. According to an official statement from the minister, AP now leads the nation in oil palm cultivation, with an area of 1.81 lakh hectares spread across eight districts of the state. 19.81 tonnes of Fresh Fruit Bunches were produced per hectare by as many as 1.32 lakh farmers who cultivated oil palm. According to the minister, the state produced 2.40 lakh tonnes of crude palm oil in 2020–21. According to Kanna Babu, the state government invested Rs 30.60 crore in the Oil Palm Development Program in 2020–21, totaling 8,801 hectares.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?