Mission Palm Oil: Towards Self-sufficiency in Edible Oil Production

  • During his visit to Arunachal Pradesh, the Prime Minister emphasised the National Mission on Edible Oils – Oil Palm (NMEO-OP), which included the inauguration of the first oil mill under the mission.

Why are we discussing this?

  • This leads in a significant outflow of $20.56 billion in foreign exchange, emphasising the importance of self-sufficiency in edible oil production.

Mission Palm oil, a catalyst for self-reliance

  • It is a centrally sponsored scheme that will be introduced in 2021 with the goal of significantly increasing oil palm planting and crude palm oil production.
  • It was introduced with a focus on the Northeast area and the Andaman & Nicobar Islands.


  1. Increase oil palm acreage by 6.5 lakh hectares by 2025-26.
  2. Increase crude palm oil production to 11.2 lakh tonnes by 2025-26, and then to 28 lakh tonnes by 2029-30.
  3. Increase consumer awareness to sustain a consumption level of 19.00 kg/person/year till 2025-26. 

Focus Areas

(1)  Fixing of Viability Price

  • Oil palm farmers are currently producing Fresh Fruit Bunches (FFBs), from which the business extracts oil.
  • FFB prices are currently fluctuating in line with international Crude Palm Oil (CPO prices).
  • The Indian government will now ensure price stability for FFBs, known as the Viability Price (VP), protecting farmers from international CPO price swings.
  • A Formula Price (FP) of 14.3% of CPO, modified monthly, will be established. The difference between VP and FP will be used to pay viability gaps, which will be transferred directly to farmers’ accounts via Direct Benefit Transfer (DBT) when needed. 

(2) Input Assistance

  • The scheme’s second major focus is to significantly enhance input assistance/interventions, including:
  1. Increasing the support for oil palm planting material from Rs. 12,000 to Rs. 29,000 per hectare.
  2. Increasing funding for maintenance and intercrop measures.
  3. Providing a particular help of Rs. 250 per plant for rebuilding ancient gardens to revitalise them.
  4. Special support is provided for the North-East and Andaman regions, including half-moon terrace cultivation, bio-fencing, land clearance, and integrated farming.

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