Launch of Oil Palm Processing Mill under National Mission on Edible Oil
NEW DELHI, 18 March 2024: During the visit to Arunachal Pradesh, Prime Minister Narendra Modi underscored India's self-reliance (Atmanirbharta) in edible oil production.
The Prime Minister highlighted the Mission Palm Oil, a special campaign carried out by the central government with the Northeast in mind 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. NMEO-OP has provisioned INR 5,870 Cr exclusively for the NER region out of the total national budget of INR 11,040 for the promotion of oil palm, where 90% contribution will be made by the Central government.
The Oil Palm Mission is strategically designed to promote oil palm cultivation in new geographies, providing comprehensive support to farmers. This support includes assistance in planting material, assured buy-back commitments from private players, and protecting farmers from global price volatility by offering a viability gap price to hedge against risks.
The role of the North-Eastern Region (NER) is pivotal in achieving Atmanirbharta in edible oil, as the scope for Oil Palm production spans across six NER states: Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland, and Tripura, encompassing a vast potential area of 8.4 lakh hectares, which is 38% of the national potential. As of now, more than 30 nurseries have been established in the region with the capacity of 30 lakh planting material.
Under the NMEO-OP, special assistance of Rs 1,00,000 per hectare is given to farmers for planting material, management, and to address the topographical challenges (land clearance, half-moon terrace construction, bio-fencing) faced by the NER farmers. The mission is also providing Rs 2,90,000 for the purchase of harvesting tools to farmers for palm oil cultivation.
The Government of India will pay a differential of 2% on the CPO price to farmers considering the tough and difficult terrain of NER. This 2% on CPO price otherwise has to be paid by processors, but to provide a level playing field to processors and motivate them. The government is incentivizing industries by paying the differential in the case of NER.
Besides this, the mission is also promoting private players to invest in the NER for establishing post-harvest processing facilities in the region, where special assistance of Rs 5 crore is allocated for oil palm processing mills in the NER. As of date, 10 new oil mills are proposed to be developed in the NER region.
This visionary initiative reflects the Government's commitment to fostering economic growth, empowering farmers, and creating a sustainable and self-reliant ecosystem for edible oil production in India. The NMEO-OP stands as a testament to India's dedication to achieving self-sufficiency in the crucial sector of edible oils.
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