Union government to extend Palm-oil plantation in north-eastern states under NMEO-OP
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its approval to launch a new Mission on palm Oil to be known as the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a new Centrally Sponsored Scheme with a special focus on the North east region and the Andaman and Nicobar Islands. Due to the heavy dependence on imports for edible oils, it is important to make efforts for increasing the domestic production of edible oils in which increasing area and productivity of palm oil plays an important part.
The scheme will immensely benefit the palm oil farmers, increase capital investment, create employment generation, shall reduce the import dependence and also increase the income of the farmers.
There are two major focus areas of the Scheme. The palm oil farmers produce )Fresh Fruit Bunches (FFBs from which oil is extracted by the industry. Presently the prices of these FFBs are linked to the international CPO prices fluctuations. For the first time, the Government of India will give a price assurance to the oil palm farmers for the FFBs. This will be known as the Viability Price (VP). This will protect the farmers from the fluctuations of the international CPO prices and protect him from the volatility.
The second major focus of the scheme is to substantially increase the assistance of inputs/interventions. A substantial increase has been made for planting material for oil palm and this has increased from Rs 12,000 per ha to Rs.29000 per ha. Further substantial increase has been made for maintenance and inter-cropping interventions. A special assistance @ Rs 250 per plant is being given to replant old gardens for rejuvenation of old gardens.
National Mission on Edible Oil-Oil Palm (NMEO-OP), launched in 2021 to promote oil palm cultivation.
– Aims to make country Atmanirbhar in edible oils with special focus on North Eastern States and Andaman & Nicobar.
Key Features of NMEO-OP:
- Scheme Type: Centrally Sponsored Scheme
- Funding pattern: 60:40 between the Central and the State Government for General states and 90:10 for NE states and 100% for UTs.
- It is being implemented in 15 states/UT’s in the country.
- It is proposed to cover an additional area of 6.5 lakh hectare (ha.) for oil palm till the year 2025-26 and reaching the target of 10 lakh hectares.
Increasing production of seedlings by establishment of seed garden, nurseries of oil palm etc.
Need: India is the world’s largest palm oil importer.
- Around 9 Million Tonne (MT) of palm oil is imported every year (56 % of the total imports of edible oil.)
Major Challenges: Impacts biodiversity as well as soil conditions), water guzzling crop (Oil Palm tree requires from 200 to 300 litres of water per day), deforestation etc.
About Palm oil
- Around 90% of the world’s oil palm trees are grown in Malaysia and Indonesia.
- It is also used in food products, detergents, cosmetics and biofuel.
- In India, Andhra Pradesh, Telangana and Kerala accounts for 98% production.