India Region

India Targets 11.20 Lakh Tonnes of Crude Palm Oil Production by 2025-26

15 March 2024, New Delhi: India is presently a net importer of edible oil, with 57% of the total edible oil being imported from various countries. The insufficiency in edible oil is negatively impacting our FOREX by 20.56 billion USD, making it more important for the nation to become self-sufficient (Atmanirbhar) in the production of edible oil through the promotion of oilseeds and palm oil.

During the visit to Arunachal Pradesh, the Prime Minister of India underscored India’s self-reliance (Atmanirbharta) in edible oil production. Prime Minister Narendra Modi highlighted the Mission Palm Oil, a special campaign carried out by the central government with a focus on the Northeast, and inaugurated the first oil mill under this mission. “Mission Palm Oil will make India Aatmanirbhar in the edible oil sector and boost the income of farmers,” the Prime Minister said, expressing gratitude towards the farmers for taking up palm cultivation.

The Government of India launched the National Mission for Edible Oils – Oil Palm (NMEO-OP) in August 2021. The mission is committed to escalating oil palm cultivation and elevating Crude Palm Oil production to 11.20 lakh tonnes by 2025-26. The scheme is presently operational in 15 states nationwide, covering a potential area of 21.75 lakh hectares. So far, 111 nurseries with a capacity of 1 crore planting material have been established, along with 12 seed gardens with the potential of 1.2 crore planting material for area expansion under the mission.

The Oil Palm Mission has been designed to promote oil palm in new geographies, providing end-to-end support to farmers in terms of assistance in planting material, assured buyback from private players involved, and protecting the farmers from the global price volatility in oil palm by providing viability gap payment (VGP) to hedge farmers’ risk. The government has timely revised the viability price of oil palm from Rs. 10,516 in October 2022 to Rs. 13,652 in November 2023. 

Besides the VGP benefit, NMEO-OP also offers special assistance of Rs. 70,000 per hectare to farmers for planting material and management. The mission is also providing Rs. 2,90,000 for the purchase of harvesting tools to farmers for palm oil cultivation and assistance of Rs. 25 lakh for establishing custom hiring centers (CHC).

Processing companies under the mission are also establishing One-Stop Centers for oil palm farmers where they are providing inputs, custom hiring services, farm advisories of good agricultural practices, and collection of farmers’ produce.

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