About the Scheme
NMEO-OP aims to reduce India's dependence on edible oil imports by increasing domestic oil palm cultivation. Budget: ₹11,040 crore (2021-22 to 2025-26). Target: 10 lakh hectares oil palm by 2025-26; 28 lakh ha by 2029-30. Price Assurance Mechanism: government buys Fresh Fruit Bunches (FFB) at assured price. Focus on NE states and Andaman.
Target Beneficiaries: Oil palm farmers in NE India and Andaman; target 10 lakh ha; food processors
Key Features
- Budget: ₹11,040 crore for 2021-26; target 10 lakh ha oil palm by 2025-26
- Price Assurance Mechanism: government guarantees minimum price for Fresh Fruit Bunches (FFB)
- Viability Price (VP) for FFB: inflation-indexed; separate for NE states (higher)
- 70% of plantation assistance upfront (unique feature vs other crop missions)
- Focus: NE states (Assam, Manipur, Mizoram, Tripura, Nagaland, Meghalaya, Arunachal) and Andaman
- Processing: oil palm mills set up near clusters; farmer-processor linkage
- India currently 3rd largest edible oil importer globally; NMEO-OP key to import reduction