Oilpalm bunches processing increases by 44.6% in 2025-26, ryots get ₹1,100 cr. payments

A view of the TG-Oilfed’s Narmetta oilpalm processing unit in Siddipet district

The Telangana State Co-operative Oilseeds Growers Federation Limited (TG-Oilfed) has achieved a new milestone in making payments to farmers supplying oil palm bunches for processing. A payment of ₹1,100 crore was made during the last financial year with a growth rate of 44.6%.

Minister for Agriculture Tummala Nageswara Rao said on Sunday that the processing units of TG-Oilfed have processed/crushed 4.74 lakh tonnes of oil palm bunches to extract edible oil. The Oilfed has registered growth in services to farmers, increased the processing capacity, adopted new technology and expanded the infrastructure.

A growth rate of 44.6% was achieved in the processing of fresh fruit bunches (FFBs) of oilpalm during 2025-26. Against the processing of 3,27,803 tonnes of FFBS during 2024-25, it went up to 4,73,997 tonnes in 2025-26. The new processing plants at Apparaopet and Narmetta have processed 1.5 lakh tonnes of FFBs taken to them and achieved oil extraction rate (OER) of 19.62%.

The Minister stated that the government was also planning to establish an oilpalm refinery for the first time in the State. The average day-wise processing was 1,850 tonnes in 2025-26 against 1,650 tonnes in 2024-25. Similarly, the monthly processing during 2025-26 even went up to 50,150 tonnes, compared to the highest of 39,840 tonnes in a month in 2024-25.

The net production of raw palmoil reached 33,182 tonnes in 2025-26 against 22,788 tonnes during the previous year. Similarly, the palm kernel oil (PKO) recovery rate improved to 17.64% from 17.17% and the production of PKO reached 5,853 tonnes from 5,075 tonnes. On an average, the farmers received 23,100 per tonne for oilpalm bunches (FFBs).

Stating that Oilfed is running a 90 tonnes per hour (TPH) processing plant at Apparaopet, 30 TPH at Aswaraopet and 30 TPH at Narmetta, the minister said the scope for expansion of the last processing unit to 120 TPH. The capacity of existing plants was also being expanded with an additional 60 TPH at Aswaraopet, 30 TPH at Beechupalli and 30 TPH at Mahabubabad.

The new processing unit at Kallurgudem with 15 TPH capacity was ready for inauguration, and it would be expanded to 60 TPH in the near future.

Farmers going for oilpalm plantation would be supplied with 10.99 lakh seedlings in November, 6.19 lakh in December, 5.2 lakh in January, 4.65 lakh in February and 4.18 lakh in March this financial year.