Khammam Emerges as Oil Palm Hub with ₹300-Crore Godrej Investment

Telangana Deputy Chief Minister Mallu Bhatti Vikramarka on Monday called upon farmers to embrace oil palm cultivation, describing it as a high-value commercial crop capable of ensuring stable and long-term income. He said expanding oil palm farming would not only strengthen farmers' livelihoods but also contribute to the country's edible oil security and rural economic growth.

The Deputy Chief Minister inaugurated the ₹300-crore Godrej Integrated Palm Oil Project at Anjanapuram village in Konijerla mandal of Khammam district, in the presence of Agriculture Minister Tummala Nageswara Rao and senior officials of the Godrej Group.

Speaking at the event, Bhatti Vikramarka said the erstwhile Khammam district, known for its fertile agricultural lands and irrigation support from the Nagarjuna Sagar Left Canal, Paleru and Wyra reservoirs, offers ideal conditions for oil palm cultivation. He said farmers should diversify into high-income commercial crops, particularly at a time when climate-related challenges such as El Niño and recurring droughts are affecting traditional agriculture.

To encourage the shift, the Telangana government is offering subsidies ranging from ₹4,000 to ₹45,000 per acre for oil palm cultivation. The crop, though requiring an initial gestation period of about four years, provides productive yields for more than two decades, making it a dependable source of recurring income.

Highlighting the national significance of the crop, the Deputy Chief Minister said India consumes nearly 2.5 million metric tonnes of palm oil annually, while domestic production is limited to around 1.2 million metric tonnes, forcing the country to rely heavily on imports. Expanding cultivation, he said, would help reduce the import bill, conserve foreign exchange and support the objectives of the National Mission on Edible Oils–Oil Palm (NMEO-OP), which seeks to increase domestic production.

Recalling the crop's history in the region, Bhatti Vikramarka said oil palm cultivation was first promoted in the erstwhile Andhra Pradesh during 1991-92 under former Chief Minister Nedurumalli Janardhana Reddy. Surveys conducted then identified Ashwaraopet and Sathupalli in the present-day Khammam region as highly suitable for the crop. Today, nearly 3 lakh acres across Telangana and other states are under oil palm cultivation, with considerable scope for further expansion.

He noted that the price of Fresh Fruit Bunches (FFB) has increased from ₹12,500 per tonne in 2023 to around ₹23,000 per tonne, highlighting the crop's growing commercial viability and attractive returns.

Spread over 113 acres, the newly inaugurated Godrej Integrated Palm Oil Project comprises nurseries, research and development facilities, seed genetics laboratories, seed gardens, milling and refining units, creating a complete value chain from seed production to processing. The facility is expected to reduce India's dependence on imported planting material from Malaysia and Indonesia, while positioning Konijerla as a major hub for quality oil palm seed production.

Assuring continued government support, Bhatti Vikramarka said the Telangana Industrial Infrastructure Corporation (TGIIC) would provide road connectivity to facilitate the project's expansion. Reaffirming the government's commitment to farmers, he said the Indiramma Praja Government had recently credited ₹9,000 crore under the Rythu Bharosa scheme to farmers' bank accounts within just nine days, underscoring its focus on strengthening agriculture and improving rural prosperity.