State Focuses on Remunerative Prices for Palm Oil Farmers: Atchannaidu
Soon after the inauguration, Atchannaidu chaired a meeting of the Oil Palm Price Fixation Committee to finalise the pricing formula for fresh fruit bunches for the 2025–26 oil year.
VijayawadA:Agriculture minister Kinjarapu Atchannaidu on Thursday said ensuring remunerative and stable prices for palm oil farmers remains a top priority of the coalition government.
The minister was speaking after inaugurating the new Director’s office building of the Horticulture and Sericulture Department at Prime Hill Crest in Vaddeswaram, Guntur district. He said the new facility would strengthen administrative efficiency and enable quicker service delivery to farmers.
Soon after the inauguration, Atchannaidu chaired a meeting of the Oil Palm Price Fixation Committee to finalise the pricing formula for fresh fruit bunches for the 2025–26 oil year. Discussions focused on parameters such as oil extraction rate, oil content and palm nut recovery, while balancing farmer interests and industry sustainability.
The minister said Andhra Pradesh continues to lead the country in oil palm area, production and productivity. Nearly 1.97 lakh farmers are cultivating oil palm over 2.49 lakh hectares across 24 districts and 371 mandals. With an average productivity of 19.81 tonnes per hectare, oil palm has emerged as a high-income crop.
He said the sector is being developed in accordance with the AP Oil Palm Act, 1993, and the Rules of 2008, through systematic allocation of factory zones, supply of quality planting material and continuous technical support. At present, 24 companies are implementing the programme, with 15 processing units operating at a combined crushing capacity of 736 metric tonnes per hour.
Quality seedlings imported from Indonesia, Malaysia and Costa Rica, along with proven domestic varieties, are being supplied to farmers. The state has also developed 30 nurseries and three seed gardens to meet future requirements.
Atchannaidu said the implementation of a 19.42 per cent oil extraction rate during the 2024–25 oil year resulted in an average price of `19,579 per metric tonne, the highest in the past decade. During 2025–26, new plantations have been expanded over 24,535 hectares, and `181.28 crore has already been released directly into farmers’ bank accounts.
