The correct answer is option 'C', Telangana.

Podu, also known as shifting cultivation or slash-and-burn agriculture, is a traditional agricultural practice that involves clearing a piece of land, burning the vegetation, and cultivating crops on the ash-enriched soil. This practice is mainly followed in the state of Telangana.

Here is a detailed explanation of why Telangana is the correct answer:

1. Historical Context:
- Shifting cultivation has been practiced in various parts of India for centuries, including in the tribal regions of Telangana.
- The Adivasis, who are the indigenous people of Telangana, have traditionally relied on podu cultivation as a means of sustenance.

2. Geographical Factors:
- Telangana is a predominantly rural and agrarian state, with a significant portion of its population engaged in agriculture.
- The state has diverse geographical features, including hilly regions and forested areas, which are suitable for podu cultivation.

3. Tribal Population:
- Telangana has a substantial tribal population, with many tribal communities residing in remote and forested regions.
- These tribal communities have historically practiced podu cultivation as their primary agricultural method.

4. Government Initiatives:
- The government of Telangana recognizes the cultural significance of podu cultivation and has taken steps to support and regulate this practice.
- The government has implemented various schemes and programs to provide assistance and improve the livelihoods of tribal communities engaged in podu cultivation.

5. Environmental Concerns:
- While podu cultivation is an age-old practice, it is also associated with certain environmental challenges.
- Unregulated and excessive podu cultivation can lead to deforestation, soil erosion, and loss of biodiversity.
- The government of Telangana has been working towards promoting sustainable agricultural practices and reducing the environmental impact of podu cultivation.

In conclusion, podu cultivation, also known as shifting cultivation, is mainly practiced in Telangana, a state in India. This traditional agricultural method has been followed by tribal communities in the region for generations. The government has recognized the importance of podu cultivation and has taken steps to support and regulate this practice.