Oil Palm Cultivation in Telangana State


Oilpalm is used in commercial agriculture in the production of palm oil which is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. Oil palm cultivation assumes significance for augmenting the indigenous availability of edible oil as it is the highest oil yielding perennial crop with 4-5 MT of palm oil and 0.4-0.5 MT palm kernel oil (PKO) per Ha.  In comparative terms, yield of palm oil is 5 times the yield of edible oil obtainable from traditional oilseeds.

This perennial crop has an economic life span of 30 years. Nearly 70 percent of palm oil is used in foods like chocolate and ice cream, bread and potato chips. At the same time, industrial uses, including the production of bio fuels and cosmetics, is constantly expanding and now accounts for nearly 30 percent of total consumption.

Consumption Pattern of Palm oil in India

  •  17.78% - Household

  •   33.33% - Food Services/catering services/hotels

  •   35.56% - Bakery & Confectionary

  •  13.33% - Non-food use

The major Palm oil producing countries in the World are Indonesia (42.5 Million MT), Malaysia (19.8 Million MT), Thailand (3.0 Million MT).Together, Indonesia and Malaysia account for over 85% of world production of Crude Palm Oil, with most of that produced intended for exports.

Major Palm Oil Production countries  (Lakh MT)

India is the 2nd highest consumer of Palm oil after Indonesia with 102 lakh MTs per annum. India, China, European Union, Pakistan, USA and Bangladesh are the major importing countries of Palm Oil from Indonesia and Malaysia.

Major Palm Oil Consumption countries  (Lakh MT)

Oil palm in India

The consumption of edible oil in India is at 22 Million MTs per annum with a per capita consumption of 16 kg/ person whereas the production is only 7 million MTs. The deficit of 15 Million MTs of edible oil is being met through imports from Indonesia and Malaysia spending huge foreign exchange.

 India stands second in consumption of palm oil with 10.2 Million MT after Indonesia (12.75 Million MT). Out of the total imports, Palm oil accounts to 60% i.e., 9-10 Million MTs of the total imports worth of Rs.69,900 crores per annum.

India's Edible oil consumption profile (Lakh tonnes)




% of increase/decrease in consumption



88.37 (39.7)



22.58 (22.3)

45.48 (20.4)



3.09 (3.1)

25.79 (11.6)



17.21 (17.0)

24.26 (10.9)



4.43 (4.4)

12.57 (5.6)


Rice Bran*

12.34 (12.2)

20.29 (9.1)



12.16 (12.0)

5.74 (2.6)



101.25 (100.0)

222.50 (100.0)


Figures in brackets represent % share; * includes other oils


At present, Oilpalm cultivation is taken up in 3.30 lakh Ha with an annual FFB production of 16.85 Lakh MTs and CPO production of 2.81 Lakh MTs in India with an average palm oil production of 3 tons/Ha, to attain self-sufficiency under oil palm in India, an additional area of 28 lakh Ha is required.


To narrow down the gap between the demand and supply of Vegetable Edible Oils and to reduce dependency on imports, the Government has proposed to promote Oil palm cultivation in a big way.

Why Oil Palm?

  •  Highest Oil yield per unit area (1-2 tons/acre) which is 8-10 times more than the other Oil seed crops.

  •  Provides sustainable and remunerative income for as long as 30 years.

  •  Less vulnerable to pests and diseases.

  •  Utilises moderate inputs reducing cost of cultivation.

  •  Oil Palm cultivation is regulated by Oil Palm Act which provides buyback arrangement.

  •  Employment generation to the rural population by establishing oil palm mills.

  •  Oil palm helps in development of green cover there by helps in carbon sequestration.

  •  One hectare of oil palm absorbs 20 tons of CO2 per annum and releases 22 tons of O2.

  •  With irrigation requirement for 1 acre paddy, 4 acres of Oil palm can be taken up.


Oilpalm Area expansion in Telangana

At Oil palm cultivation, at present is being taken up only in 4 districts of the Telangana State i.e., Khammam, Kothagudem, Nalgonda and Suryapet with an area of 19520 Ha  covered so far. The State production of Crude Palm Oil is only around 38000 MT against the requirement of 3.30 Lakh MT.


There are two processing units being operated by M/s TS Oilfed with a capacity of 30 tonns per hour each at Ashwaraopet and Apparaopet village in Dammapet mandal of Bhadradri Kothagudem District.


Telangana stands 6th in Oilpalm area in the country, 2nd in production of Fresh Fruit Bunches and 1st in Oil Extraction Rate (OER) with 18.68 %.


Government is providing assistance for taking up Oilpalm Cultivation under Centrally Sponsored Scheme National Food Security Mission – Oilpalm (GoI 60:40 State) under this scheme 50% assistance is provided on plant material, cultivation assistance, Vermicompost units, bore wells, drip irrigation, harvesting tools The scheme is executed through M/s TS Oilfed, M/s Godrej Agrovet and Ruchi Soya companies. 


  In Telangana State Oilpalm Cultivation and processing is regulated by  The Telangana Oil Palm (Regulation of Production and Processing) Act 1993   (Act No.3 of 1993); As per this act the allotted companies shall pay the FFB price as fixed by the Government to the Farmers on monthly basis.


Raising of Nursery to Extraction of Crude Palm Oil











Contact Us

O/o Commissioner of Horticulture

Address: Inside Public Garden
                          Nampally, Hyderabad-500029
Telefax: 040-23232253/ 7997724914

E-mail: oilpalm-horti[at]telangana[dot]gov[dot]in