"There is a high market demand for oil palm. Farmers can expect a net income of Rs 150,000 per acre from oil palm cultivation, according to Telangana finance minister Thaneeru Harish Rao, who delivered the Budget speech for 2023-24 on Monday.
India is the world's second-largest consumer and the world's largest importer of vegetable oil, meeting roughly 60% of its demand through imports.
"The moisture content in the air in Telangana has increased significantly following the construction of irrigation projects, renovation of tanks and construction of check dams. As a result, Telangana is now suitable for oil palm cultivation. Today, the country imports a lot of palm oil," the minister said.
The government is providing large-scale incentives to farmers to encourage them to engage in oil palm cultivation, which pays well. The total amount proposed in the Budget for agriculture is Rs 26,831 crore.
This is the final state budget before the Assembly elections later this year. The state government proposed a total expenditure of Rs 290,396 crore for 2023-24, of which Rs 2,11,685 crore is revenue expenditure and Rs 37,525 crore is capital expenditure.
Oil palm trees must be planted at the proper density to yield a good yield from cultivation. This planting method allows for approximately 145 plants per hectare.
Oil palm requires a four-year gestation period. During the gestation years, intercropping can supplement earnings. To establish greenfield oil palm plantations, an ecosystem of nurseries, plantations, and oil mills must be established at the same time.
