AMARAVATI: The Ukraine war is helping oil palm farmers in the state. Palm fruit now costs ₹22,000 per tonne from the previous ₹10,000 per tonne. Edible oil prices continue to soar in open market due to shortage.
The horticulture department is hoping that the current trend will make farmers of upland areas switch to oil palm cultivation. "The oil palm is fetching nearly ₹2-2.5 lakh profit per acre which is unseen in the past," said Ch Janaki Ramaiah, a cultivator from West Godavari district.
Sources said that tobacco growers too may shift to oil palm cultivation due to volatile market for tobacco.
The palm fruit prices began to rise from January. The prices increased to ₹22,000 per tonne in four months. "This is a record. Average price till last year has been ₹10,000 per tonne," said MVS Nagireddy, vice-chairman, agriculture mission.
The price of palm oil fruit per tonne was ₹12,000 in March, 2021, which was considered the highest till then. The steady increase in prices is luring farmers to switch to palm tree cultivation. Farmers are taking upland fields on lease in large extents to cultivate palm trees.
Landlords have increased lease price. Sources said annual leases increased to ₹60,000 per acre from ₹40,000. However, farmers are not worried.
"We struggled to get an extra ₹200 to ₹300 per tonne in the past. Now, the situation has changed," said another farmer.
