The Telangana Government has made a formal appeal to the Union Government of India to restore the import duty on crude palm oil (CPO) to 44%, a significant increase from the current 16.50%. This move aims to bolster domestic production and support local farmers.
Current Duty Structure
- 2018: Import duty was at 44%
- 2025: Duty reduced to 27.50%
- 2026: Further reduced to 16.50%
The reduction in duties has adversely affected domestic prices, impacting farmers' incomes. Tummala Nageswara Rao, Telangana's Agriculture Minister, emphasized the need for higher duties to protect local interests.
"The reduction in the basic Custom Duty on Crude Palm Oil had an adverse impact on the domestic CPO prices," said Rao in a letter to Shivraj Singh Chouhan, Union Minister for Agriculture and Farmers Welfare.
Strategic Importance of Palm Oil
Telangana leads India in oil palm cultivation, accounting for 36% of the country's total acreage. The state plans to expand its plantation by 34,000 hectares in 2026-27. This expansion is part of the National Mission on Edible Oils - Oil Palm (NMEO-OP), which aims to increase domestic production.
Economic Impact
- Income per acre: ₹2-3 lakhs
- Price of fresh fruit bunch (FFB): ₹23,500 per tonne
The state government argues that oil palm offers better yields and returns compared to other oilseed crops, making it a strategic choice for farmers.
Call to Action
The Telangana government urges the Union Government to reconsider the duty structure to support the domestic palm oil industry. The proposed increase to 44% is seen as a necessary step to ensure the viability of local production and farmer welfare.
| Year | Import Duty (%) |
|---|---|
| 2018 | 44 |
| 2025 | 27.50 |
| 2026 | 16.50 |
The decision now rests with the Union Government, which must balance international trade commitments with domestic agricultural priorities.
