National Mission on Edible Oils - Oil Palm (NMEO-OP)

  • 11 Jan 2025

In News:

  • Union Minister Shri Shivraj Singh Chouhan urges states to accelerate efforts under the National Mission on Edible Oils - Oil Palm (NMEO-OP) to enhance domestic production of edible oils and reduce reliance on imports.

Key Facts Regarding the NMEO-OP Scheme:

About the Scheme:

  • Objective: Enhance domestic production of crude palm oil (CPO) and reduce India's dependence on edible oil imports.
  • Centrally Sponsored Scheme: Focuses on expanding oil palm cultivation in India.

Key Targets:

  • Area Expansion: Aim to cover an additional 6.5 lakh hectares by 2025-26, reaching a total of 10 lakh hectares.
  • Production Increase: CPO production is targeted to rise from 0.27 lakh tonnes (2019-20) to 11.20 lakh tonnes by 2025-26, and further to 28 lakh tonnes by 2029-30.
  • Per-Capita Consumption: Maintain a consumption level of 19 kg/person/annum until 2025-26.

Focus Regions:

  • Special Focus: North-Eastern States and Andaman & Nicobar Islands for oil palm cultivation and CPO production.

Key Features:

  • Viability Price (VP) Mechanism: Aims to protect farmers from market volatility by providing price assurance. Payments are made through Direct Benefit Transfer (DBT).
  • Increased Assistance:
    • Assistance for planting material increased from Rs 12,000/ha to Rs 29,000/ha.
    • Special assistance of Rs 250 per plant for rejuvenating old gardens.
  • Regional Support:
    • For North-East and Andaman, an additional 2% of the CPO price is borne by the government to ensure fair payments to farmers.
    • Special provisions for half-moon terrace cultivation, bio-fencing, and land clearance for integrated farming.

Oil Palm Cultivation:

  • Origin: Native to the tropical rainforests of West Africa, oil palm is a new crop in India with high oil-yielding potential.
  • Oil Yield: Oil palm produces five times the yield of traditional oilseeds per hectare.
  • Types of Oil Produced:
    • Palm Oil: Extracted from the mesocarp (fruit's fleshy part), containing 45-55% oil.
    • Palm Kernel Oil: Derived from the kernel, used in lauric oils.
  • Major States for Cultivation: Andhra Pradesh, Telangana, Kerala (98% of total production).
  • Other Key States: Karnataka, Tamil Nadu, Odisha, Gujarat, Mizoram, Arunachal Pradesh, Assam, Manipur, Nagaland.

India's Oil Palm Potential:

  • Cultivated Area: India currently has 3.70 lakh hectares under oil palm cultivation.
  • Total Potential Area: Around 28 lakh hectares.
  • Imports: India is the world's largest palm oil importer, with imports of 9.2 million tonnes in 2023-24, accounting for 60% of total edible oil imports. The country primarily imports from Indonesia, Malaysia, and Thailand.