COMMODITY
Govt approves NMEO-OP as centrally sponsored scheme to reduce import dependency
Aug-10-2026

The government has approved the National Mission on Edible Oils-Oil Palm (NMEO-OP) as a Centrally Sponsored Scheme with the objective of increasing the area and productivity of oil palm and thereby enhancing domestic production of edible oils and reducing dependence on imports. The Mission was launched in 2021-22 with a financial outlay of Rs 11,040 crore, including a government share of Rs 8,844 crore, and a target of bringing 6.5 lakh hectare under oil palm cultivation during 2021-22 to 2025-26.

The Mission is being implemented in 15 States, (Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Karnataka, Kerala, Manipur, Mizoram, Nagaland, Odisha, Tamil Nadu, Telangana and Tripura). The major interventions under NMEO-OP 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, besides a price assurance mechanism for farmers through the Viability Gap Payment (VGP).

During 2021-22 to 2025-26, a total area of 2.73 lakh hectare was brought under oil palm cultivation. During the same period, the government released Rs 1,447.21 crore to the implementing States under various components of the Mission. The NMEO-OP was approved for the period 2021-22 to 2025-26 with an outlay of Rs 11,040 crore. Subsequently, Annual Action Plans (AAPs) of 2026-27 for implementing states have been approved for Rs 1143.9 crore.

In addition to NMEO-OP, the National Mission on Edible Oils - Oilseeds (NMEO-OS) was launched on October 03, 2024 for seven years period from 2024-25 to 2030-31 to boost the domestic oilseed production and to strive toward self-sufficiency in edible oil. Under the mission, production of improved indigenous varieties and hybrids of oilseeds are being promoted through 100% support for purchase of breeder seeds and also promoted through distribution of certified seeds in the Value Chain Clusters. 60 Seed Hubs & 50 specialized seed storage units have been sanctioned for production of Breeder Seed of recently released varieties.

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