Palm oil refinery plans in Aswaraopet gain traction

The Telangana State Cooperative Oilseeds Growers Federation Ltd. has proposed the construction of a palm oil refinery in Aswaraopet with a production capacity of 100 tons.
Image used for representational purpose only.
Image used for representational purpose only.

KHAMMAM: With the formation of the Congress government in the state, there is a renewed sense of optimism among oil palm farmers regarding the establishment of a palm oil refinery in Aswaraopet village of erstwhile Khammam district.

The region is known for its palm oil plantations, spanning across 80,000 acres in both Khammam and Bhadradri Kothagudem districts. According to officials from the Telangana State Cooperative Oilseeds Growers Federation Ltd., approximately 3 lakh metric tonnes of palm oil are crushed annually by two factories in Aswaraopet and Dammapeta villages, respectively.

The federation has proposed the construction of a palm oil refinery in Aswaraopet with a production capacity of 100 tons. Officials estimate a budget of Rs 100 crore for the establishment of the refinery within the existing palm oil factory premises in Aswaraopet.

However, during the tenure of the BRS government, under the influence of the local ministers and other leaders, the refinery was relocated to Siddipet, an area with significantly lower palm oil cultivation, crushing only 5,000 tons annually.

Currently, the refinery is in the tender completion stage. Farmers from Khammam are questioning the decision to shift the refinery to Siddipet, where major palm oil plantations are absent. K Srinivas, a farmer from Aswaraopet, said, “The refinery was forcibly taken to Siddipet, but our hopes have increased after the formation of the Congress government, as it may facilitate retaining the refinery in Aswaraopet.”

The federation’s leaders, including T Maheswara Reddy, K Pullaiah, and Adapa Lachaiah Dora, said that setting up the refinery in Siddipet would be impractical and financially burdensome, as raw materials would need to be transported from Aswaraopet and Dammapeta factories, resulting in an additional annual expenditure of Rs 10 crores for the oil federation.

Jare Adinarayana, MLA-elect from Aswaraopet, assured to meet with Chief Minister Revanth Reddy and advocate for the establishment of the refinery in Aswaraopet, a promise he had made during his campaigns.The farmers expressed hope for the retention of the refinery, particularly due to the affiliation of Agriculture Minister Thummala Nageswara Rao with the region.

3L metric tonnes of palm oil crushed annually

According to officials from the Telangana State Cooperative Oilseeds Growers Federation Ltd., approximately 3 lakh metric tons of palm oil are crushed annually by two factories in Aswaraopet and Dammapeta villages, respectively.

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