Palm cultivators demand share of kernel oil profits

Kothagudem: Palm cultivators in Khammam and Bhadradri-Kothagudem districts are seeking a share of profits from the production and sale of palm kernel oil, along the lines of the ratio of investments between farmers and TSOILFED.

Farmers said that there is a huge demand for palm kernel oil in the international market as it is used in making cosmetic products as well. The side products from the oil production process are used by the poultry industry and in farm fibre production, among others.

The palm oil factories in Apparaopet and Aswaraopet were set up based on the Central government’s directives, with farmers accounting for 75.25 per cent of the investment for palm production and the TSOILFED 24.75 per cent, but recording a turnover of Rs 40 crore by selling the oil.

While setting up the system, TSOILFED included only profits on crude palm oil and kernel (palm seed), but not palm kernel oil.

The profit share is decided monthly, as per the profits recorded.

The prices of palm bunches are decided on the extraction of crude palm oil, per tonne of palm fruit bunches, and the international prices.

M. Venkat, a palm cultivator, said, “The TSOILFED should share the profit on palm kernel oil with palm growers; it is a just demand. Palm growers in Telangana extended their support by leaving other crops, which was a daring move.”

Erramsetti Saveeen, another oil palm grower, said, “TSOILFED commenced palm factories, including in Siddipet, Vemsoor and Mahabubabad, after it was successful in Apparaopet and Aswaraopet. It is just to share the profits on all by-products with palm growers.”