The Telangana government has urged the Union government to establish an assured price of ₹25,000 per tonne for Fresh Fruit Bunches (FFB) of oil palm. The proposal aims to provide income security for cultivators across the country and protect them from frequent price fluctuations.
Telangana Agriculture Minister Tummala Nageswara Rao submitted a memorandum regarding this pricing mechanism to Union Home Minister Amit Shah. The submission took place on Thursday during the 31st Southern Zonal Council meeting held in Mahabalipuram, Tamil Nadu.
Highlighting regional collaboration in the agricultural sector, the Telangana Agriculture Minister also sought the cooperation of Andhra Pradesh Chief Minister N Chandrababu Naidu to jointly advocate for the pricing structure with the Union government.
Minister Rao emphasized the unique economic challenges faced by oil palm cultivators, noting that the crop has a very long gestation period. This prolonged timeline requires farmers to wait years before generating any income from their plantations, making robust initial returns critical for recovering substantial upfront investments.
Addressing the broader market conditions, the state government noted that while oil palm cultivation is gaining momentum in states like Telangana and Andhra Pradesh, local producers remain vulnerable to price dynamics dictated by international markets. The proposed assured rate and periodic price revisions aligned with rising production costs are intended to mitigate these market risks.
"Long gestation periods and exposure to global price volatility create significant financial risks for agricultural enterprises and primary producers. Establishing a predictable baseline pricing mechanism helps stabilize input-output economics, enabling farmers and agribusinesses to manage capital investments and long-term cash flow much more effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
