What happened: approval and design of NMEO-OP as a Centrally Sponsored Scheme

The Government approved the National Mission on Edible Oils–Oil Palm (NMEO-OP) as a Centrally Sponsored Scheme to increase oil palm area and productivity, with the stated goal of enhancing domestic edible oil production and reducing dependence on edible oil imports.

NMEO-OP is implemented across 15 States: Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Karnataka, Kerala, Manipur, Mizoram, Nagaland, Odisha, Tamil Nadu, Telangana, and Tripura.

NMEO-OP interventions under the mission include assistance for planting material, maintenance of plantations, intercropping, drip irrigation, farm machinery, replanting, establishment of seed gardens and nurseries, and development of oil palm processing infrastructure. The mission also includes a price assurance mechanism for farmers through Viability Gap Payment (VGP).

Background and earlier position: NMEO-OP launch and stated targets (2021-22 to 2025-26)

NMEO-OP was launched in 2021-22 with a financial outlay of Rs. 11,040 crore. The Government of India share was Rs. 8,844 crore.