Telangana bets big on oil palm to cut $19 billion vegetable oil imports

[hyperbole]

Telangana bets big on oil palm to cut $19 billion vegetable oil imports

 

The recent rally in palm oil prices has more than doubled prices of fresh fruit bunches, which farmers sell to oil mills. (Bloomberg)

Pullarao Daravathu and thousands of fellow farmers from Telangana in India's south are busy planting oil palms as their home state aims to add more area under the controversial crop within four years than the entire country has in decades.

Telangana is targeting 2 million additional acres under oil palm cultivation in the next four years, and is going to great lengths to achieve this goal - from building large dams and irrigation canals to importing millions of germinated sprouts.

Generous government subsidies and bumper profit potential compared to other crops are also encouraging farmers like Daravathu to shift to oil palms.

"Oil palm is giving more than 200,000 Indian rupees ($2,536) per acre return to farmers who planted the crop some years back. In rice, I am struggling to earn 40,000 rupees even after putting in lots of effort," said Daravathu, who was planting oil palm on his 5-acre farm at Sathupally, nearly 300 km (186 miles) east of Hyderabad, the state capital.

The recent rally in palm oil prices has more than doubled prices of fresh fruit bunches, which farmers sell to oil mills.

For years, price volatility, water scarcity and a gestation period of nearly four years limited oil palm plantation in India to less than 1 million acres, mostly in coastal Andhra Pradesh, the state that Telangana was carved out of in 2014.

But Telangana, which occupies an inland region on the Deccan Plateau, is now keen to emerge as India's main palm oil hub, with an area target that would place the state as the fifth largest oil palm grower globally – from a negligible base currently.

The drive could reduce India's mammoth vegetable oil imports, which cost the country a record $18.9 billion a year ago and widened the national trade deficit.

India fulfils two-thirds of its vegetable oil demand through imports of around 14 million tonnes annually, including around 8.5 million tonnes of palm oil.

The federal government is keen to increase palm oil output to slash those expensive imports, which lifted inflation this year to multi-year highs after top supplier Indonesia abruptly halted exports.

"In the next four years, most of the palm planting would be done, and after 7-8 years Telangana could be producing 4 million tonnes of palm oil," L Venkatram Reddy, director of Horticulture at the state government told Reuters.

India currently produces less than 300,000 tonnes of palm oil and relies on imports from Indonesia, Malaysia and Thailand to fulfil its requirements.

Even if Telangana manages to grow oil palm on only 1 million acres and produces 2 million tonnes of palm oil, it would be a huge achievement, said Chava Venkateswara Rao of Godrej Agrovet Ltd, the country's biggest palm oil producer.

Until last year, the country was adding around 35,000 acres under oil palm every year.

Water first

Some areas in Telangana have sufficient water for thirsty oil palms thanks to the rivers such as the Godavari, Krishna and Bhima. But many pockets lacked sufficient water to cater to the oil palm's need of up to 265 litres per tree per day.

To overcome that, the state has built massive lift irrigation projects and a canal network that is now allowing farmers to plant oil palms across most of the state.

"We used to face water scarcity in summer season. Now, with the Kaleshwaram lift irrigation project, we have ample water for oil palm," said farmer Bollampalli Venkateshwar Rao, who planted oil palms on 12 acres.

The Kaleshwaram irrigation project, which is nearly complete, cost the state 1.15 trillion rupees ($14.44 billion).

Authorities are giving permission to cultivate oil palms only after farmers install water-conserving micro irrigation systems, said Reddy, adding "The central and state government's subsidies are covering almost the entire cost of drip irrigation system."

The shift towards oil palm from paddy rice and other crops could help the state to bring down annual paddy procurement by around 2.5 million tonnes, and trim the electricity bill for lift irrigation projects by 15 billion rupees as drip-fed oil palms need less water than paddy, Reddy said.

Ravi Mathur, who heads the Indian Institute of Oil Palm Research (IIOPR), a government-backed body spearheading the oil palm push, said the lift irrigation project has made oil palm planting feasible in areas previously unsuitable for the crop because of water scarcity.

Planting Material Scarcity

While thousands of farmers are keen to shift to oil palm, the availability of seedlings is limited, and preparing them is a lengthy process which takes almost a year.

Companies operating in Telangana imported 12.5 million sprouts last year and made seedlings for around 200,000 acres this year, said an official with the state-run TS Oilfed, the country's biggest importer of germinated sprouts

The state is aiming to import 15 million sprouts this year - mainly sourced from Indonesia, Malaysia, Thailand and Costa Rica - and 50 million next year to achieve the target, he said.

But only handful of companies are supplying germinated sprouts.

"There is sudden surge in demand following a rally in palm oil prices. Companies are not able to supply as much we need this year," said Sougata Niyogi, a top official at Godrej Agrovet. "The supply situation would become more comfortable next year."
 

https://www.livemint.com/news/india/telangana-bets-big-on-oil-palm-to-cut-19-billion-vegetable-oil-imports-11659494205094.html

[AndhraneedSCS]

Telangana ani emi undhi... maa side andaru Oil Palm veyyali ani trying. 

 

Not enough plants available and that seems to be the bottleneck at this time.

[Android_Halwa]

1 minute ago, AndhraneedSCS said:

Telangana ani emi undhi... maa side andaru Oil Palm veyyali ani trying. 

 

Not enough plants available and that seems to be the bottleneck at this time.

Chala shortage vundi...Kadem Nursey and sangareddy  nursery aithe next 1-2 years varaku no availability...hand sup...

but Karnataka nundi supply vastundi ani antunaru...

[Android_Halwa]

Paddy nundi kastha divert ayi...commercial and cash crops ki alavatu padithe naa yaldi telangana villages anni golden villages ayitayi...

Okappudu sunflower, castor oil seeds baaga esetollu...iyalarepu aithe sunflower aithe chusinattu kuda gurtu ledu ekada kuda..

[Ford_Abbai]

Malaysia will not let this happen... 

[JackSeal]

9 minutes ago, hyperbole said:

Telangana bets big on oil palm to cut $19 billion vegetable oil imports

 

The recent rally in palm oil prices has more than doubled prices of fresh fruit bunches, which farmers sell to oil mills. (Bloomberg)

Pullarao Daravathu and thousands of fellow farmers from Telangana in India's south are busy planting oil palms as their home state aims to add more area under the controversial crop within four years than the entire country has in decades.

Telangana is targeting 2 million additional acres under oil palm cultivation in the next four years, and is going to great lengths to achieve this goal - from building large dams and irrigation canals to importing millions of germinated sprouts.

Generous government subsidies and bumper profit potential compared to other crops are also encouraging farmers like Daravathu to shift to oil palms.

"Oil palm is giving more than 200,000 Indian rupees ($2,536) per acre return to farmers who planted the crop some years back. In rice, I am struggling to earn 40,000 rupees even after putting in lots of effort," said Daravathu, who was planting oil palm on his 5-acre farm at Sathupally, nearly 300 km (186 miles) east of Hyderabad, the state capital.

The recent rally in palm oil prices has more than doubled prices of fresh fruit bunches, which farmers sell to oil mills.

For years, price volatility, water scarcity and a gestation period of nearly four years limited oil palm plantation in India to less than 1 million acres, mostly in coastal Andhra Pradesh, the state that Telangana was carved out of in 2014.

But Telangana, which occupies an inland region on the Deccan Plateau, is now keen to emerge as India's main palm oil hub, with an area target that would place the state as the fifth largest oil palm grower globally – from a negligible base currently.

The drive could reduce India's mammoth vegetable oil imports, which cost the country a record $18.9 billion a year ago and widened the national trade deficit.

India fulfils two-thirds of its vegetable oil demand through imports of around 14 million tonnes annually, including around 8.5 million tonnes of palm oil.

The federal government is keen to increase palm oil output to slash those expensive imports, which lifted inflation this year to multi-year highs after top supplier Indonesia abruptly halted exports.

"In the next four years, most of the palm planting would be done, and after 7-8 years Telangana could be producing 4 million tonnes of palm oil," L Venkatram Reddy, director of Horticulture at the state government told Reuters.

India currently produces less than 300,000 tonnes of palm oil and relies on imports from Indonesia, Malaysia and Thailand to fulfil its requirements.

Even if Telangana manages to grow oil palm on only 1 million acres and produces 2 million tonnes of palm oil, it would be a huge achievement, said Chava Venkateswara Rao of Godrej Agrovet Ltd, the country's biggest palm oil producer.

Until last year, the country was adding around 35,000 acres under oil palm every year.

Water first

Some areas in Telangana have sufficient water for thirsty oil palms thanks to the rivers such as the Godavari, Krishna and Bhima. But many pockets lacked sufficient water to cater to the oil palm's need of up to 265 litres per tree per day.

To overcome that, the state has built massive lift irrigation projects and a canal network that is now allowing farmers to plant oil palms across most of the state.

"We used to face water scarcity in summer season. Now, with the Kaleshwaram lift irrigation project, we have ample water for oil palm," said farmer Bollampalli Venkateshwar Rao, who planted oil palms on 12 acres.

The Kaleshwaram irrigation project, which is nearly complete, cost the state 1.15 trillion rupees ($14.44 billion).

Authorities are giving permission to cultivate oil palms only after farmers install water-conserving micro irrigation systems, said Reddy, adding "The central and state government's subsidies are covering almost the entire cost of drip irrigation system."

The shift towards oil palm from paddy rice and other crops could help the state to bring down annual paddy procurement by around 2.5 million tonnes, and trim the electricity bill for lift irrigation projects by 15 billion rupees as drip-fed oil palms need less water than paddy, Reddy said.

Ravi Mathur, who heads the Indian Institute of Oil Palm Research (IIOPR), a government-backed body spearheading the oil palm push, said the lift irrigation project has made oil palm planting feasible in areas previously unsuitable for the crop because of water scarcity.

Planting Material Scarcity

While thousands of farmers are keen to shift to oil palm, the availability of seedlings is limited, and preparing them is a lengthy process which takes almost a year.

Companies operating in Telangana imported 12.5 million sprouts last year and made seedlings for around 200,000 acres this year, said an official with the state-run TS Oilfed, the country's biggest importer of germinated sprouts

The state is aiming to import 15 million sprouts this year - mainly sourced from Indonesia, Malaysia, Thailand and Costa Rica - and 50 million next year to achieve the target, he said.

But only handful of companies are supplying germinated sprouts.

"There is sudden surge in demand following a rally in palm oil prices. Companies are not able to supply as much we need this year," said Sougata Niyogi, a top official at Godrej Agrovet. "The supply situation would become more comfortable next year."
 

https://www.livemint.com/news/india/telangana-bets-big-on-oil-palm-to-cut-19-billion-vegetable-oil-imports-11659494205094.html

Aa dora gadu chesina wrong propaganda valla palm oil ante free money anukoni fertile lands are getting converted into palm farms. Due to which huge pest infestation in my village. Chebthe vinakunda ma vallu kuda subsidy ani 10acres ke saplings kosam apply chesaru… baga pressure mount chesi educate chesthe venakki thaggaru but still oka 5 acres pettaru… every season income vache land went dormant now

[JackSeal]

6 minutes ago, Android_Halwa said:

Paddy nundi kastha divert ayi...commercial and cash crops ki alavatu padithe naa yaldi telangana villages anni golden villages ayitayi...

Okappudu sunflower, castor oil seeds baaga esetollu...iyalarepu aithe sunflower aithe chusinattu kuda gurtu ledu ekada kuda..

Palm oil crops will not make villages golden… large farmers edsei small farmers falling into the trap 

[Android_Halwa]

Just now, JackSeal said:

Palm oil crops will not make villages golden… large farmers edsei small farmers falling into the trap 

Telangana lo migiledi small farmers ae...90% of the farmers will own less than 5 acres of land. We don't have to bother about the 10%.

Vellaku vunde ie >5 acres land will split into half in another 10-20 years and small farmers will become smallest farmers...demographics gurinchi kuda alochinchu okasari..

1-2 acres lo ae vyavasayam chesina chetulu kaalutayi...

[JackSeal]

3 minutes ago, Android_Halwa said:

Telangana lo migiledi small farmers ae...90% of the farmers will own less than 5 acres of land. We don't have to bother about the 10%.

Vellaku vunde ie >5 acres land will split into half in another 10-20 years and small farmers will become smallest farmers...demographics gurinchi kuda alochinchu okasari..

1-2 acres lo ae vyavasayam chesina chetulu kaalutayi...

Lol 1-2 acres vyavasayam cheyakapothe chethulu kadu kadupu kaluthundhi … already many palm oil vesi roju vari kulilaku velthunnaru… rythu bandhu + mnrega + kuli panulu tho bachaisthunnaru many families. 
ground level lo apudina chusinava or city batch aa ?

[Simple123]

16 minutes ago, JackSeal said:

Aa dora gadu chesina wrong propaganda valla palm oil ante free money anukoni fertile lands are getting converted into palm farms. Due to which huge pest infestation in my village. Chebthe vinakunda ma vallu kuda subsidy ani 10acres ke saplings kosam apply chesaru… baga pressure mount chesi educate chesthe venakki thaggaru but still oka 5 acres pettaru… every season income vache land went dormant now

Bro .. enlighten please .. why the land went dormant ? Crop vastadi kada 

[JackSeal]

1 minute ago, Simple123 said:

Bro .. enlighten please .. why the land went dormant ? Crop vastadi kada 

If you take care of plantation very well you will get harvest in 5 years. So 5 years you have to feed it without any income from it. Intercrop annaru kani due to pests farmers hardly seeing profits.

1-2 acre unna small farmer next 5 years ela survive avvalo vadilesi Dora cheppina sweet words and subsidy ke padipothunnaru and by the time they realize it’s too late. They themselves are surviving on schemes inka palm oil plantation em take care chestharu ?

[Android_Halwa]

15 minutes ago, JackSeal said:

Lol 1-2 acres vyavasayam cheyakapothe chethulu kadu kadupu kaluthundhi … already many palm oil vesi roju vari kulilaku velthunnaru… rythu bandhu + mnrega + kuli panulu tho bachaisthunnaru many families. 
ground level lo apudina chusinava or city batch aa ?

Nijanga cheppu kaka, asalu ground level la susinava ? Maa oorla side aithe 1-2 acres vunte adu vari vese badulu gaddi petti intla 4 barrelu petukuandu...ekaram vunnodiki opika vunte tomatoes lekapothey vari..

govt incentives lekapothey small farmer anetodu bratakadu...5 nelalaki vache aadayam tho roju kadupu nindutundi anukunte inka nuvu apohala vunnav...

[JackSeal]

Just now, Android_Halwa said:

Nijanga cheppu kaka, asalu ground level la susinava ? Maa oorla side aithe 1-2 acres vunte adu vari vese badulu gaddi petti intla 4 barrelu petukuandu...ekaram vunnodiki opika vunte tomatoes lekapothey vari..

govt incentives lekapothey small farmer anetodu bratakadu...5 nelalaki vache aadayam tho roju kadupu nindutundi anukunte inka nuvu apohala vunnav...

Ground level ae chepthunna … barrelu is a good thing bcoz you get continous revenue with comparatively minimal effort. Small farmers who are using this approach are flourishing in my village. And epudu milk ke decent price vundhi

Palm oil crop ravadanki 5 years so you need to invest money on it. 1-2 acre unna ae rythu 5 yrs invest chesthu kurchuntadu ? Govt subsidy for saplings approve kavadanke more than year padthundhi so inka palm oil investment help sangathi vedsei… 

Proper caring leka trees won’t grow fast eventually farmer will go back to his traditional farming.

palm oil is probably good for people who own acres of land but don’t do farming like employees and NRIs.

[argadorn]

14 minutes ago, JackSeal said:

Ground level ae chepthunna … barrelu is a good thing bcoz you get continous revenue with comparatively minimal effort. Small farmers who are using this approach are flourishing in my village. And epudu milk ke decent price vundhi

Palm oil crop ravadanki 5 years so you need to invest money on it. 1-2 acre unna ae rythu 5 yrs invest chesthu kurchuntadu ? Govt subsidy for saplings approve kavadanke more than year padthundhi so inka palm oil investment help sangathi vedsei… 

Proper caring leka trees won’t grow fast eventually farmer will go back to his traditional farming.

palm oil is probably good for people who own acres of land but don’t do farming like employees and NRIs.

5 years antunavu mari mango ayina ye kaya ayina antay time padythadhi vayya  money unnoduu veyyali normal people need to wait until proven in telangana anni kavali antay ela that is how the world is .. it is for rich people 

[JackSeal]

8 minutes ago, argadorn said:

5 years antunavu mari mango ayina ye kaya ayina antay time padythadhi vayya  money unnoduu veyyali normal people need to wait until proven in telangana anni kavali antay ela that is how the world is .. it is for rich people 

small farmers seldom go for mango plantations.