Sat. Apr 11th, 2026

The Ministry of Agriculture has urged the State Governments to prioritise the oil palm plantation targets under the National Edible Oil Mission-Oil Palm (NMEO-OP) scheme.

Key facts about NMEO-OP scheme

NMEO-OP is a centrally sponsored scheme to promote domestic production of crude palm oil (CPO) thereby reducing the country’s dependence on imports.

Objectives

  • Area expansion: To cover additional 6.5 lakh hectares of oil palm area by 2025-26, taking the total area covered under it to 10 lakh hectares.
  • Production target: To increase CPO production from 0.27 lakh tonnes (2019-20) to 11.20 lakh tonnes (2025-26) and to 28 lakh tonnes by 2029-30.
  • Per capita consumption: To maintain a consumption level of 19 kg/person/year by 2025-26.
  • Focus area: Special focus on North Eastern region and Andaman & Nicobar Islands to promote oil palm cultivation and CPO production.

Key features

  • Price assurance: It focuses on Viability Price (VP) mechanism to protect farmers from international price fluctuations. Viability fund will be paid directly into farmers’ accounts as DBT.
  • Increase in assistance: Assistance amount for planting material increased from Rs. 12,000 per hectare to Rs. 29,000 per hectare. Special assistance of Rs. 250 per plant provided for revival of old orchards.
  • Special provisions for North East and Andaman: To ensure equity in payments to farmers across regions, an additional 2% of the CPO price will be borne by the Government. Special provisions have been made for integrated farming as well as crescent terrace farming and bio-fencing.
Semi-circular terracing is a soil restoration technique in which semi-circular embankments are constructed to collect and concentrate runoff water for plant growth. Bio-fencing means planting rows of trees along the boundaries of fields and fields to provide protection from livestock and wildlife. It focuses on controlling dust along with acting as a windbreak.

Oil Palm

  • Origin and Yield: It originated in the tropical rain forest region of West Africa. It is a comparatively new crop in India but has the highest vegetable oil yield potential per hectare. The productivity of oil palm is five times higher than that of traditional oilseeds.
  • Types: It yields two types of oils.
  • Palm oil: Obtained from the mesocarp of the fruit (45-55% oil content).
  • Palm Kernel Oil: It is obtained from the kernel, which is a source of lauric oils.

Cultivation of Oil Palm

  • Major States: Andhra Pradesh, Telangana and Kerala (98% of total production).
  • Other Major States: Karnataka, Tamil Nadu, Odisha, Gujarat, Mizoram, Arunachal Pradesh, Assam, Manipur and Nagaland.
  • Extent: Its total potential area in India is about 28 lakh hectares but only 3.70 lakh hectares of area is under oil palm cultivation.
  • Import: India is the largest importer of palm oil in the world with 9.2 million tonnes of palm oil imports in 2023-24. Palm oil accounts for 60% of total edible oil imports. India mainly buys oil from Indonesia, Malaysia and Thailand.

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