India, currently a net importer of edible oil, faces significant challenges with 57% of its total edible oil imported, impacting FOREX by 20.56 billion USD.
Modi emphasizes need for self-sufficiency in edible oil production
Prime Minister Narendra Modi during his recent visit to Arunachal Pradesh emphasised the need for self-reliance in the production of edible oil and highlighted the Mission Palm Oil, a central government initiative focusing on the Northeast.
Inaugurating the first oil mill under this mission Modi said that the aim is to make India self-sufficient in edible oil production, boosting farmers’ income.
India, currently a net importer of edible oil, faces significant challenges with 57% of its total edible oil imported, impacting FOREX by 20.56 billion USD.
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The Government of India launched the National Mission for Edible Oils – Oil Palm (NMEO-OP) in August 2021, aiming to escalate oil palm cultivation and increase Crude Palm Oil production to 11.20 lakh tonnes by 2025-26. Operational in 15 states covering a potential area of 21.75 lakh hectares, the mission has established 111 nurseries and 12 seed gardens, facilitating area expansion.
The Oil Palm Mission provides end-to-end support to farmers, including assistance in planting material and buyback agreements with private players, along with a Viability Gap Payment (VGP) to hedge against global price volatility. The government revised the viability price of oil palm timely, from Rs. 10,516 in October 2022 to Rs. 13,652 in November 2023.
Additionally, NMEO-OP offers special assistance of Rs. 70,000 per hectare for planting material and management, Rs. 2,90,000 for harvesting tools, and Rs. 25 lakh for establishing custom hiring centers (CHC). Processing companies are establishing One-Stop Centers for oil palm farmers, providing inputs, custom hiring services, and farm advisories.
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