Naidu urges Amit Shah to rollback move on crude palm oil
Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged Union Home Minister Amit Shah to reconsider the Centre’s 10% import duty cut on crude palm oil. He warned that the move, announced during the peak plantation season, could harm farmer incomes and undermine the National Mission on Edible Oils–Oil Palm (NMEO-OP), affecting long-term oil palm cultivation efforts in the state.
Chief Minister Nara Chandrababu Naidu in a letter urged Union Home Minister Amit Shah to reconsider Centre’s decision to reduce import duty on crude palm oil.
A delegation led by Telugu Desam Party Lok Sabha floor leader Lavu Sri Krishna Devarayulu along with other TDP MPs and Union Civil Aviation Minister K. Rammohan Naidu called on Union Home Minister in New Delhi on Tuesday (June 17).
The delegation submitted Mr. Naidu’s letter urging the Centre to reconsider it decision to reduce import duty on Crude Palm Oil (CPO) by 10%, as per Gazette notification released on May 30.
In his letter, Mr. Naidu highlighted that the timing of the duty reduction — announced during the peak plantation season — could seriously disrupt the success of the National Mission on Edible Oils – Oil Palm (NMEO-OP) and hurt farmer income.
“The reduction in import duty will lead to an immediate drop in the price realisation for existing Oil Palm growers, thereby eroding their confidence and potentially dissuading prospective farmers from adopting this high-potential crop,” the CM said.
“This decision, while perhaps intended to address short-term concerns, stands to seriously undermine the long-term vision and efforts being made by both the Government of India and the States, including Andhra Pradesh, to promote oil palm cultivation under the NMEO-OP,” he said.
Andhra Pradesh accounts for over 50% of the total oil palm cultivation area in India, with 1.74 lakh farmers cultivating across 2.49 lakh hectares. The State has already achieved 67,727 hectares of oil palm coverage from 2021–2025, and targets an additional 50,000 hectares this year under the NMEO-OP, the letter mentioned.
The Chief Minister further said, “Andhra Pradesh has taken proactive steps to promote Oil Palm expansion, including provision of incentives as per NMEO-OP, infrastructure development and farmers’ outreach through awareness programmes and deep technologies with AI tools. However, such policy decisions at the national level risk undoing the momentum that has collectively built.”
Meanwhile, Mr. Devarayulu reinforced the need for policy revision and support to farmers. “Given the vital role these groups play in implementing NMEO-OP, I urge the Ministry of Cooperation to take cognizance of the issue and work with stakeholders to ensure price support and stability,” he urged Mr. Shah.
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Source : The Hindu
