Palm Target Misses to Face Allocation Cuts

05-Jan-2026 04:40 PM

Hyderabad: The government has initiated decisive action to reduce the area previously allocated to firms that failed to achieve their oil palm plantation targets and to reallocate this area to other companies. This could result in losses for firms that underperformed or failed to meet their targets.

It is noteworthy that in Telangana, the government had entered into agreements with several companies to expand the area under oil palm cultivation and had allocated specific zones to them for establishing new plantations.

However, some companies failed to fulfill their commitments and achieve the stipulated targets. Now, a decision has been made to reduce the allocation for these firms and transfer the reduced area to other companies. The reduced area has now come under the purview of the Telangana Oil Federation.

Under the Telangana Oil Palm (Production, Processing and Control) Act, 1993, and subsequent provisions added in 2008, firms are required to establish palm processing units within three years or 36 months of planting the oil palm saplings and provide support to palm producers in their allocated zones.

However, in some areas, palm processing facilities could not be established. The Telangana Agriculture Minister repeatedly reviewed the situation and warned the concerned firms to achieve the targets within the stipulated timeframe. When no concrete results were seen on the ground, the government was compelled to intervene.

For example, one company was allocated 44,527 acres of land in Karimnagar district for oil palm cultivation, but it was only able to plant palm trees on 6,721 acres within the stipulated time. As a result, its factory zone has been canceled and handed over to the Federation.