The new year of 2025 brings good news for oil palm producers in Telangana and Andhra Pradesh, as the price of fresh fruit bunches (FFB) has surged to over Rs 20,000 per tonne.

This sharp rise, driven by a 20 percent increase in the import duty on edible oils by the Central Government, has significantly boosted both the demand and price of crude palm oil (CPO).

The increased import duty has led to a greater demand for FFB in the domestic crushing and processing industry, contributing to this surge.

The FFB price in late December 2024 is 65 percent higher than the previous price of Rs 12,534 per tonne.

Additionally, crude palm oil prices have experienced a similar jump, rising by around 60 percent, from Rs 77,720 per tonne to Rs 1.25 lakh per tonne. Industry analysts have noted that the price of FFB in September 2023 was Rs 12,231 per tonne, and it has continued to rise each month since then.

Though prices vary across different producing states, the price in Telangana is expected to be similar in Andhra Pradesh as well.

In terms of expansion, Telangana has set a target to increase the oil palm plantation area by an additional one lakh acres during the 2024-25 season. However, only a quarter of this target has been met so far, with the government aiming to establish plantations in around 60,000 acres by March 31, 2025.

Currently, Telangana has oil palm plantations covering approximately 2.33 lakh acres, which constitutes about 16 percent of the total oil palm area in the country.