- Andhra Pradesh has secured the top position in India in the expansion of oil palm cultivation.
- During 2025–26, the state brought 75,030 acres under new oil palm plantations, achieving a significant milestone.
- Among the districts, Eluru recorded the highest expansion with 29,837.5 acres, followed by East Godavari with 9,555 acres, NTR district with 6,145 acres, Kakinada with 5,282.5 acres, and Parvathipuram Manyam with 4,230 acres.
- In terms of cultivation practices, earlier oil palm saplings were planted using the triangular method, but the Horticulture Department is now promoting the square planting method to improve spacing and productivity.
- Farmers are also encouraged to adopt intercropping, including annual crops such as ginger, maize, and vegetables, along with long-term crops like cocoa, nutmeg, and pepper. This approach enhances land-use efficiency and provides additional income to farmers during the initial years before oil palm starts yielding.
- At present, farmers are receiving a price of ₹19,579 per tonne, which is the highest average price recorded in the past ten years.
- Looking ahead, the state government has prepared plans for 2026–27 to expand cultivation to 87,500 acres with an outlay of ₹204.13 crore.
- Andhra Pradesh has thus maintained its leading position in oil palm expansion in both 2024–25 and 2025–26, supported by improved techniques, better price realization, and policy support.
- Oil Palm is the highest yielding crop compared to all vegetable oil seed crops which can yield up to 20-25 MTs FFBs and in turn to 4-5 MTs of Palm Oil and 0.4-0.5 MT Palm Kernel Oil (PKO).
- Palm oil constitutes about 80% of total edible Oil import, and hence Oil palm is identified as one of the potential crop which significantly contribute to increase in edible Oils production in the Country.
- Andhra Pradesh stands 1st in Area and Production of Oil Palm in the Country with an area of 2.27 lakh ha and 18.95 Lakh MT of FFBs (1.74 lakh Farmers) with an average productivity of 19.81 Tons per ha from the bearing plantations of 1.74 lakh Ha.
- 354 mandals were identified across the State in 24 districts i.e., Srikakulam, Parvathi puram Manyam, Vizayanagaram, Vishakapatnam, Alluri Sita RamaRaju, Anakapalli, Kakinada, East Godavari, Konaseema, Eluru, West Godavari, NTR, Krishna, Guntur, Palnadu, Bapatla, Sri potti sri ramulu, Tirupathi, Chittoor, Kurnool. Annaymayya, Nandhyal, YSR Kadapa and Anathapuram and allotted to different Companies in the State
- Oil Palm programme is being taking in the state, duly allotting the oil Palm factory zones to the Oil Processing units. The factories also have to procure Oil Palm Fresh Fruit Bunches (FFBs) from the Oil Palm farmers and also to pay the price as fixed by the Government adhering to the Oil Palm Act 1993 and AP Oil Palm (Regulation of Production and Processing) Rules 2008.
- NFSM-Oil Palm activities:
- Subsidy @ 85% is being provided on Plant Material under Oil Palm Area Expansion Programme
- 50% assistance is being provided to the beneficiaries for the components like Maintenance, Inter cropping, Borewell & Pump set, Vermi Compost units and Machinery and tools
- 100% assistance is being provided for Capacity Building / Farmers Trainings.
- Andhra Pradesh stands 1st in Area, Production and Productivity of Oil Palm in the Country, with an area of 2.49 lakh Ha (50% of Country’s Oil palm area) with 1.97 lakh farmers in 24 districts spreading over in 373 mandals and the Andhra Pradesh holds 85% to 90% share of the production of Crude Palm Oil in the Country.
- 30 Oil Palm nurseries are being maintained in the State by the Oil Palm processors, with the production capacity of all nurseries together is 70.00 lakh No of seedlings per year.
- Total 26 Companies are implementing Oil Palm Development Programme in the State and 13 Processing units/ factories are existing in AP with a crushing capacity of 461 MTs/hour.
- The Area covered under Oil Palm is 2.49 lakh Ha against the Potentiality of 4.77 lakh Ha which is 52% against the potentiality and an area of 67,727 Ha has been brought under Oil Palm during the last 4 years.
- In the last 3 years i.e., 2021-22 to 2023-24, 125 new mandals have been allotted to the different Oil palm companies in the State, and also extended the Oil palm Development Programme to the 8 new districts i.e., Kurnool, Nandyal, YSR Kadapa, Guntur, Palnadu, Bapatla, Annamayya and Ananthapuramu along with the 16 traditional districts i.e., Srikakulam, PVP Manyam, Visakhapatnam, Vizianagaram, ASR, Anakapalli, Kakinada, East Godavari, Konaseema, Eluru, West Godavari, NTR, Krishna, SPS Nellore, Tirupathi and Chittoor.
- The Oil palm Seed Garden, Morampudi, East Godavari district has developed and initiated the Seed production during 2024-25 and produced 1.00 lakh No of Oil palm Seed Sprouts and supplied to the Oil Palm Companies for growing of seedlings in order to supply the seedlings to the farmers and it has the capacity to produce 2.00 lakh to 3.00 lakh seed sprouts per year.
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