AP Agriculture Minister Prioritizes Remunerative Prices for Oil Palm Farmers
State Agriculture Minister Kinjarapu Atchannaidu declared on Thursday that ensuring remunerative prices for oil palm farmers remains a top priority for the government. The minister made this announcement after inaugurating the new office building of the director of the department of horticulture and silk industries at Vaddeswaram in Guntur district.
Key Meeting on Price Fixation for 2025–26 Oil Year
Following the inauguration ceremony, Minister Atchannaidu chaired a crucial meeting of the Oil Palm Price Fixation Committee to deliberate on the price calculation formula for the upcoming 2025–26 oil year. The discussions centered on essential parameters such as:
- Oil Extraction Rate (OER)
- Palm nut recovery
The committee aimed to balance the interests of both farmers and the oil palm industry, ensuring fair compensation while maintaining sector sustainability.
Andhra Pradesh Leads in Oil Palm Cultivation
Minister Atchannaidu highlighted that Andhra Pradesh currently ranks first in the country across multiple metrics:
- Oil palm cultivation area
- Total production output
- Overall productivity levels
The state boasts approximately 1.97 lakh farmers cultivating oil palm across 2.49 lakh hectares in 24 districts and 371 mandals. With an impressive average productivity of 19.81 tonnes per hectare, oil palm has emerged as a particularly profitable agricultural crop for farmers throughout the region.
Record Prices and Government Support Initiatives
The minister provided encouraging data from the 2024–25 oil year, noting that an OER of 19.42 percent resulted in an average price of Rs 19,579 per metric tonne—marking the highest price point in the last decade. This achievement has significantly boosted farmer confidence in oil palm cultivation.
Financial support has been substantial, with Rs 181.28 crore already disbursed directly to farmers' bank accounts. Additionally, new plantations have expanded over 24,535 hectares, demonstrating growing interest in this agricultural sector.
Under the National Oilseeds Mission, the government is providing comprehensive support to oil palm farmers through various initiatives:
- Free seedlings for new plantations
- Cultivation incentives to encourage expansion
- Intercropping assistance for diversified farming
- Drip irrigation subsidies to promote water efficiency
Minister Atchannaidu emphasized that these measures are steadily transforming oil palm cultivation into a sustainable income source for farmers across Andhra Pradesh. The programme was attended by senior government officials along with representatives from both oil palm farming communities and industry companies.
