Fetching better prices for oil palm farmers a key priority, says A.P. Agriculture Minister

Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu has said that ensuring remunerative prices for oil palm farmers is a key priority of the government, with a strong focus on enhancing farmers’ income through reforms in the horticulture and oil palm sectors.

The Minister inaugurated the Director’s Office building of the Horticulture and Sericulture Department at Prime Hill Crest at Vaddeswaram in Guntur district on Thursday.

He also chaired a meeting of the Oil Palm Price Fixation Committee to finalise the pricing formula for oil palm fresh fruit bunches for the 2025–26 oil year.

The Minister said Andhra Pradesh ranks first in India in oil palm acreage, production, and productivity. At present, about 1.97 lakh farmers are cultivating oil palm on 2.49 lakh hectares in 371 mandals of 24 districts, with an average productivity of 19.81 tonnes per hectare.

The State is implementing the Oil Palm Development Programme in accordance with the A.P. Oil Palm Act, 1993, and Rules, 2008, providing factory zoning, quality planting material, and technical support.

Currently, 24 companies are operating in the sector, with 15 processing units having a crushing capacity of 736 metric tonnes per hour, he said.

The Minister noted that during the 2024–25 oil year, farmers received an average price of ₹19,579 per metric tonne with an Oil Extraction Rate (OER) of 19.42 per cent, the highest in the last decade.

He said ₹181.28 crore has been directly credited to farmers’ accounts so far, and assured continued government support to make oil palm a stable and profitable crop.

Senior officials, farmers, and industry representatives attended the programme.