NMEO–Oil Palm
India is the largest consumer of edible oils, but unfortunately also one of the largest importers. We import over 60% of our edible oil needs, especially palm oil from Indonesia and Malaysia. This causes:
- Huge foreign exchange outflow,
- Vulnerability to international price shocks, and
- Strategic dependence on foreign supplies.
To change this, India launched the NMEO-OP in 2021, a mission-mode scheme to boost domestic palm oil production and achieve Atmanirbharta (self-reliance) in edible oils.
Quick Overview Table
| Feature | Details |
| Type | Centrally Sponsored Scheme |
| Launched | 2021 |
| Duration | Up to 2025–26 |
| Aim | Reduce import dependency on edible oils |
| Special Focus | North-Eastern States & Andaman & Nicobar Islands |
Objectives of the Scheme
- Increase cultivation of Oil Palm across India, especially in potential areas.
- Reduce dependence on edible oil imports.
- Ensure price stability for oil palm farmers despite global price fluctuations.
- Improve infrastructure and productivity related to oil palm.
Salient Features
1. Subsumes Earlier Schemes
- Replaces the older Oil Palm Development Programme under NFSM.
- Ensures a mission-mode approach for focused execution.
2. Two Strategic Pillars
(A) Price Assurance
- International palm oil prices are highly volatile.
- To protect farmers, the government introduced a Viability Price (VP).
- VP > International Crude Palm Oil Price, if needed—Govt pays the difference.
Ensures minimum income security to oil palm cultivators.
(B) Increased Financial Assistance
Support extended for:
- Quality planting material
- Seed gardens & nurseries
- Intercropping for 4 years
- Maintenance cost of palm plantations
- Water infrastructure (e.g., bore wells, drip irrigation, etc.)
3. Water Management Emphasis
- Encourages micro-irrigation, especially in water-stressed areas.
- Promotes climate-resilient cultivation.
4. Operational Coverage
- Currently operational in 15 states.
- Total potential area: 21.75 lakh hectares.
Why Oil Palm?
| Feature | Reason |
| Origin | West Africa |
| Yield | Highest vegetable oil yield per hectare |
| Dual Oils | Produces both palm oil (pulp) and palm kernel oil (seed) |
| Usage | Cooking, processed foods, cosmetics, biodiesel |
| India’s Supply Gap | Domestic: ~12.4 million tonnes vs Import: ~16.5 MT |
2025–26 Strategy: Area & Output Targets
🌱 Area Expansion
| Target | Details |
| Current | 3.5 lakh hectares |
| Target by 2025–26 | 10 lakh hectares |
| ➤ New Addition Needed | 6.5 lakh hectares |
| – General States | 3.22 lakh ha |
| – North East | 3.28 lakh ha |
Production Target
- Crude Palm Oil (CPO): 11.2 lakh tonnes
Consumption Strategy
- Target per capita consumption: 19 kg/person/year
- Emphasis on nutrition awareness and domestic alternatives to imported oils.
Strategic Focus Summary
- Reduce import dependency (especially from Indonesia/Malaysia)
- Create a stable domestic ecosystem of oil palm
- Enable farmers with assured prices and input support
- Promote agro-industrial investment in processing and value addition
🔗 UPSC Relevance
This scheme is a case study in food security, import substitution, and rural income stability, hence important for:
- GS Paper 3 – Agriculture, Food Processing, Economy
- GS Paper 2 – Government Schemes & Welfare Initiatives
- Essay Paper – “Self-reliance in Agriculture”, “Sustainable Food Systems”
📝 One-Liner Summary
NMEO-OP is a Centrally Sponsored Scheme to make India self-reliant in palm oil production, reduce imports, and offer price assurance and input support to oil palm farmers.