Times of India (05/01/2026) - Hyderabad: The govt has taken decisive action to reallocate zones previously assigned to underperforming oil palm companies. This move followed the failure of some companies to meet the commitments outlined in their agreements for cultivating oil palm in the state. The zones earlier designated to these non-performing companies were reassigned to Telangana Oil Fed. Under the Telangana Oil Palm (production, processing, and control) Act, 1993, and its regulations of 2008, firms are mandated to establish processing units within 36 months of planting and to support farmers within their factory zones. However, due to a lack of progress in setting up processing facilities, expanding plantations, and developing nurseries, the govt, after several reviews led by Agriculture minister Tummala Nageswara Rao, felt compelled to intervene. For instance, one company managed to cultivate oil palm on only 6,721 acres of the 44,527 acres allocated to it in Karimnagar district, leading to the cancellation of its factory zone, which was subsequently handed over to Telangana Oil Fed. Similarly, Matrix Palm Oil Industries and KN Biosciences (India) fell short of their cultivation targets in their respective districts, resulting in their factory zones being reassigned as well.

‘Stable pricing'

The minister highlighted the critical need for timely procurement, stable pricing, and accessible processing mills to support farmers. The govt's objective is to strategically promote oil palm cultivation to reduce dependence on imported edible oils, and it has actively pushed forward the National Mission on Edible Oils — Oil Palm scheme in the state. Currently, oil palm cultivation covers about 2.82 lakh acres, with an additional98,976 acres brought under cultivation since the present administration assumed office. The govt has made direct deposits totalling 297.88 crore into the accounts of 53,709farmers. Through these initiatives, the state has achieved the highest oil production rate in country at 20.01%. The current market price for raw palm oil stands at 19,694 per metric tonne. Minister also urged firms to adhere to approved plans and build trust with the farming community.

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