On 18 August 2021, the Union Cabinet approved the Rs. 11,040 crore National Mission on Edible Oils Palm (NMEO-OP), aimed at promoting the domestic cultivation of oil palm within the next five years, thereby reducing India’s dependence on edible oil imports.
The NMEO-OP has been approved keeping in mind the economic development of the north-east and Andaman & Nicobar islands, Union Information and Broadcasting Minister, Anurag Thakur informed media personnel.
Of the total earmarked amount, approximately Rs. 8,844 would be contributed by the Centre, and the remaining Rs. 2,196 would be borne by the state concerned. The scheme shall also subsume the National Food Security Mission-Oil Palm program, he claimed.
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Under this scheme, the Centre aims to bring an additional 6.5 lakh hectare under oil palm by 2025-26, thereby pushing the total area under oil palm to 10 lakh hectare, informed Union Agriculture Minister, Narendra Singh Tomar.
Ṭhis shall take India’s total oil palm output to 11.20 lakh tonne by 2025-26, followed by 28 lakh tonne in 2029-30.
The scheme shall also provide price assurance to cultivators producing Fresh Fruit Bunches, the Agriculture Minister added.
For this, the ‘viability price’ shall be determined after taking into account the annual average CPO price prevalent in the last five years, and adjusting it with the wholesale price index multiplied by 14.3 per cent.
This shall, however, be fixed on a yearly basis for each oil palm year that spans from November to October.
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States willing to participate in the scheme will have to enter into an MoU with the Centre. Presently, the area under oil palm in India is close to 3.70 lakh hectare, with just 12 states taking up oil palm cultivation.
