Introduction:
Andhra Pradesh CM Chandrababu Naidu has urged Union Home Minister Amit Shah to roll back the Centre’s recent decision to reduce import duty on crude palm oil (CPO) by 10%. He warned that this move could severely affect farmer incomes and derail the country’s edible oil self-reliance efforts.
Andhra Pradesh Chief Minister N. Chandrababu Naidu has raised strong objections to the Central Government’s decision to reduce import duty on crude palm oil (CPO) by 10%, calling it a setback for Indian oil palm growers. In a formal letter submitted to Union Home Minister Amit Shah on June 20, 2025, Naidu urged for an immediate rollback of the policy.
The Centre’s decision, notified on May 30, comes at a crucial time—right in the middle of the oil palm plantation season. Naidu warned that the timing of the duty cut could lower the market price of domestic palm oil, demoralising existing growers and discouraging new farmers from entering this high-potential sector.
“This decision may seem helpful in the short term, but it undermines the long-term vision of India’s edible oil self-sufficiency under the National Mission on Edible Oils – Oil Palm (NMEO-OP),” the CM stated.
Andhra Pradesh is at the forefront of India’s oil palm revolution, accounting for over 50% of the total cultivated area, with 1.74 lakh farmers across 2.49 lakh hectares. Between 2021 and 2025, the state has covered 67,727 hectares and aims to add another 50,000 hectares this year under the NMEO-OP.
Naidu pointed out that Andhra Pradesh has been proactive in promoting oil palm cultivation by offering incentives, building infrastructure, and using AI-powered tools to support farmers. “Decisions like this could break the trust that has been built over the years with our farmers,” he warned.
The letter was submitted in person by a TDP delegation led by MP Lavu Sri Krishna Devarayulu and Union Civil Aviation Minister K. Rammohan Naidu, highlighting the state’s deep concern over national policy decisions that could undo years of progress in oil palm farming.
With stakes high for farmer income and the success of India’s edible oil mission, the ball is now in the Centre’s court to decide whether economic stability for growers will take precedence over short-term import cost management.