The Government of India has approved the National Mission on Edible Oils–Oil Palm (NMEO-OP) as a Centrally Sponsored Scheme with the primary objective of increasing oil palm cultivation area and productivity to enhance domestic edible oil production and reduce import dependence. The mission was originally launched in 2021-22 with a total financial outlay of ₹11,040 crore, comprising a Government of India share of ₹8,844 crore, targeting 6.5 lakh hectares of oil palm cultivation during the five-year period from 2021-22 to 2025-26.
The scheme is being implemented across 15 states: Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Karnataka, Kerala, Manipur, Mizoram, Nagaland, Odisha, Tamil Nadu, Telangana, and Tripura. Key interventions under NMEO-OP include financial assistance for planting material, plantation maintenance, intercropping, drip irrigation, farm machinery, replanting, establishment of seed gardens and nurseries, and development of oil palm processing infrastructure. Additionally, the mission provides a price assurance mechanism for farmers through Viability Gap Payment (VGP).
During the implementation period from 2021-22 to 2025-26, a total area of 2.73 lakh hectares was brought under oil palm cultivation. The Government of India released ₹1,447.21 crore to implementing states under various components of the mission during this period. For the subsequent year, the Annual Action Plan for 2026-27 has been approved with an allocation of ₹1,143.9 crore for implementing states.
In a related development, the National Mission on Edible Oils – Oilseeds (NMEO-OS) was launched on October 3, 2024, for a seven-year period from 2024-25 to 2030-31 to boost domestic oilseed production and work toward self-sufficiency in edible oil. This mission promotes production of improved indigenous varieties and hybrids of oilseeds through 100% support for breeder seed purchase and distribution of certified seeds in Value Chain Clusters. Under this initiative, 60 Seed Hubs and 50 specialized seed storage units have been sanctioned for production of breeder seeds of recently released varieties.