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Economy
Pradeep Kumar

19/08/21 09:20 AM IST

National Mission on Edible Oils – Oil Palm

In news

The Union Cabinet, has given its approval to launch a new Mission on Oil palm to be known as the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a new Centrally Sponsored Scheme with a special focus on the North east region and the Andaman and Nicobar Islands. 

About the scheme
  • Due to the heavy dependence on imports for edible oils, it is important to make efforts for increasing the domestic production of edible oils in which increasing area and productivity of oil palm plays an important part.
  • A financial outlay of Rs.11,040 crore has been made for the scheme, out of which Rs.8,844 crore is the Government of India share and Rs.2,196 crore is State share and this includes the viability gap funding also.
  • Under this scheme, it is proposed to cover an additional area  of 6.5 lakh hectare (ha.) for oil palm till the year 2025-26 and thereby reaching the target of 10 lakh hectares ultimately. 
  • The production of Crude Palm Oil (CPO) is expected to go upto 11.20 lakh tonnes by 2025-26 and upto 28 lakh tonnes by 2029-30.
  • The scheme will immensely benefit the oil palm farmers, increase capital investment, create employment generation, shall reduce the import dependence and also increase the income of the farmers.
  • For the first time, the Government of India will give a price assurance to the oil palm farmers for the FFBs. This will be known as the Viability Price (VP).
  • This will protect the farmers from the fluctuations of the international CPO  prices and protect him from the volatility.  
Background
  • Since 1991-92, many efforts have been made by the Government of India  to increase the production of oilseeds and oil palm.
  • The oilseeds production has increased from 275 lakh tons in 2014-15 to 365.65 lakh tons in 2020-21. 
  • For harnessing the potential of palm oil production, in the year 2020, an assessment has been made by the Indian institute of Oil Palm Research (IIOPR) for cultivation of oil palm which has given an assessment of around 28 lakh ha. 
  • Thus, there is huge potential in oil palm plantation and subsequently production of Crude Palm Oil (CPO).
  • At present only 3.70 lakh hectares is under Oil Palm cultivation.
  • Oil palm produces 10 to 46 times more oil per hectare compared to other oilseed crops and has yield of around 4 tons oil per ha.
  • Thus, it has enormous potential for cultivation.
Source: PIB

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