National Mission on Edible Oils – Oil Palm (NMEO-OP)

Introduction 

The National Mission on Edible Oils – Oil Palm (NMEO-OP) is a central agriculture scheme launched by the Government of India in 2021 to boost domestic production of edible oils, especially oil palm, and reduce the country’s long-standing dependence on imports. India is one of the world’s largest consumers of edible oils, but local production meets only a small portion of demand, forcing high import bills and exposing farmers to global price swings. NMEO-OP addresses this challenge by supporting farmers, self-help groups (SHGs), farmer-producer organizations (FPOs), and entrepreneurs across eligible states to take up oil palm cultivation and processing. The scheme provides financial assistance, technical guidance, and post-harvest support to improve yields and incomes, while also encouraging new plantations in both traditional and non-traditional areas. Its focus on the whole value chain – from planting to processing – aims to create jobs, enhance benefits for growers, and ensure affordable edible oils for Indian households. Overall, NMEO-OP is an important step towards self-reliance in edible oils and strengthening India’s agricultural sector.

Overview of the Scheme

The National Mission on Edible Oils – Oil Palm (NMEO-OP) is a central sector scheme launched by the Ministry of Agriculture & Farmers Welfare, Government of India, in 2021. It aims to boost oil palm cultivation and reduce India’s dependence on imported edible oils. The main implementing agency is the Department of Agriculture and Farmers Welfare, with state agriculture departments handling on-ground work in various states. Research support comes from ICAR institutes and agricultural universities, while technical and field-level activities are managed by state line departments. NABARD is not listed as an official implementing agency on government portals.

Funding Pattern

NMEO-OP uses a cost-sharing funding pattern. For most states, the Central Government covers 60% of expenses, and the State Government covers 40%. For North Eastern states and the Himalayan region, the ratio is 90% central and 10% state. In Union Territories, the scheme is fully funded by the Central Government (100%). For example, a farmer in Nagaland would receive 90% of eligible financial support from central funds and 10% from the state.

Sectors Covered

• Key components covered under NMEO-OP include:
• Supply of high-quality oil palm planting materials
• Support for irrigation, fertilizers, and farm machinery
• Financial assistance for intercropping and maintenance of plantations
• Capacity building, farmer training, and extension services
• Credit and insurance coverage where notified

Current Status

The National Mission on Edible Oils – Oil Palm (NMEO-OP) is ongoing and continues to expand coverage to more traditional and non-traditional oil palm regions. The scheme is regularly monitored and updated, ensuring that farmers, self-help groups, and FPOs benefit from support for sustainable oil palm cultivation.

Objectives 

The National Mission on Edible Oils – Oil Palm (NMEO-OP) objectives focus on making India more self-reliant in edible oils while improving farmer incomes and reducing import dependence. These goals are designed to support everyone involved in the oil palm value chain, from farmers to processors, using a mix of financial, technical, and policy support. The purpose of this agriculture scheme is to help India expand its oil palm cultivation sustainably and raise domestic production to meet growing demand.

Key objectives of NMEO-OP include:

• Increase the area under oil palm cultivation, especially in North-Eastern states and the Andaman and Nicobar Islands.
• Boost domestic production of crude palm oil to reduce the country’s reliance on imports.
• Provide financial and input support to oil palm farmers for planting, maintenance, and productivity improvement.
• Promote the adoption of modern technologies and best practices for higher yields.
• Ensure fair and stable prices to farmers through a viability price mechanism linked to the market value of crude palm oil.
• Support replanting and rejuvenation of old oil palm gardens to maintain productivity.
• Facilitate training, capacity building, and skill development for farmers and grassroots workers.
• Encourage value addition, efficient processing, and infrastructure development in the edible oils sector.
• Expand coverage of the scheme to new and non-traditional oil palm cultivation areas across India.
• Help create new livelihood opportunities and boost rural incomes through the promotion of oil palm cultivation and processing.

Together, these NMEO-OP objectives support farmers, increase the supply of edible oils, and help make India more secure and resilient in its agriculture sector.

Key Features / Benefits 

The National Mission on Edible Oils – Oil Palm (NMEO-OP) offers a wide range of features and benefits designed to support farmers, boost domestic oil palm production, and reduce India’s dependence on imports. This agriculture scheme includes dedicated benefits for different regions and social categories, ensuring that assistance reaches those who need it most.

Viability Price Assurance: Farmers growing oil palm receive an assured minimum price for their fresh fruit bunches through a Viability Price mechanism that protects them from market fluctuations and ensures stable returns. (Example: If market prices drop, the government pays the difference directly to the farmer.)

Deficiency Price Payment through Direct Transfers: Any gap between the market price and the assured price is paid directly to farmer bank accounts, making support fast and transparent.

Special Subsidy for NE & Andaman Farmers: Growers in North-Eastern states and Andaman & Nicobar Islands get an extra 2% price benefit, ensuring their income matches that of farmers in other regions.

Higher Support for SC/ST Farmers: 17% of scheme resources are earmarked specifically for Scheduled Caste farmers, and 8% for Scheduled Tribe farmers, promoting equity and inclusion in agricultural support.

Grant for Rejuvenation of Old Gardens: Farmers can get up to ₹250 per plant to replant and revive old oil palm gardens, helping keep plantations productive.

Enhanced Assistance for Planting Material: The subsidy for buying oil palm planting material has increased from ₹12,000 per hectare to ₹29,000 per hectare, making it easier for farmers to start new plantations. (Example: A farmer purchasing saplings for a new field gets higher financial support.)

Prioritized Assistance in NE & Islands: Seed garden owners in North-East and Andaman regions receive up to ₹100 lakh for 15 hectares, more than the ₹80 lakh for the rest of India, supporting the expansion of planting material supply.

Input and Maintenance Support: Financial help is available for inputs like fertilizers, drip irrigation, and machinery, plus support for plantation maintenance and intercropping during the 4-year gestation period.

Industry Capital Assistance for NE and Islands: Processing units in North-East and Andaman states get capital support of up to ₹5 crore for a 5 metric ton/hour unit, encouraging local value addition.

Flexi Fund Inclusion: States can use up to 10% of total mission funds for region-specific activities, providing flexibility based on local needs.

Integration with Other Schemes: States can merge resources from other central agriculture schemes, boosting effective implementation for oil palm development.

Accessible to All Farmers: The scheme includes all categories of farmers, FPOs, and SHGs, aiming for inclusive coverage nationwide.

With these key benefits and features, the National Mission on Edible Oils – Oil Palm (NMEO-OP) delivers strong support for farmers and local agri-businesses, strengthens the edible oil supply chain, and promotes sustainable growth in India’s agriculture sector.

Eligibility Criteria 

The National Mission on Edible Oils – Oil Palm (NMEO-OP) eligibility criteria cover various types of beneficiaries to ensure wide and fair access to scheme benefits. These criteria focus on clear documentation, registration, and activity requirements so that support reaches genuine applicants involved in oil palm cultivation or related activities.

Farmers

• Individual farmers with land suitable for oil palm cultivation are eligible.
• Must have valid land records proving ownership or tenancy, along with a valid residential ID.
• Age criteria may vary but generally include adult farmers capable of managing cultivation.
• Required documents include AADHAAR card, land ownership or lease documents, and bank passbook for subsidies.
• Farmers selected through state-level or Panchayat committees to ensure on-ground feasibility.

Self Help Groups (SHGs)

• Must be registered and actively functioning as per local government or development authority rules.
• Should have a bank account for receiving subsidies and payments.
• Active participation in oil palm related cultivation or processing activities is necessary.

Farmer Producer Organizations (FPOs)

• Must be registered under the Producer Companies Act or relevant cooperative laws.
• Should have a minimum number of farmer members (usually around 10 or more) linked to oil palm farming.
• Actively involved in production, procurement, marketing, or processing of oil palm products.
• Required to submit registration certificates and operational proof for scheme participation.

Entrepreneurs/Startups/MSMEs

• Need to be registered entities under UDYAM registration or equivalent.
• Must have GST registration if applicable.
• Involved in oil palm cultivation, nursery, processing, or value-added product manufacturing.
• Must submit business registration documents, GST certificate, and detailed project reports (DPR) for subsidy application.

Special Categories

• Dedicated resources are reserved for Scheduled Caste (17%) and Scheduled Tribe (8%) farmers to promote inclusive growth.
• Prioritized eligibility and additional benefits for farmers in North-Eastern states and Andaman & Nicobar Islands to support cultivation in these regions.

Not Eligible

• Duplicate benefits under other schemes are not allowed to avoid overlap.
• Non-agricultural landowners or those without clear land records are ineligible.
• Applicants who do not meet registration or activity criteria for SHGs, FPOs, or entrepreneurs are excluded

Application Process

The application process for the National Mission on Edible Oils – Oil Palm (NMEO-OP) is designed to be accessible for farmers, SHGs, FPOs, and entrepreneurs. Applicants can apply online or offline through designated government channels.

Where to Apply:

• Apply online through the official agriculture department portals of respective states. (Example: Telangana Oil Palm Mission portal https://opm.telangana.gov.in)
• Offline applications can be submitted at the nearest Agriculture Office, Krishi Vigyan Kendra (KVK), ATMA, or Block Development Office.

Registration/Login:

• For online application, create an account by registering on the state agriculture portal using a valid mobile number and AADHAAR.
• Login using registered credentials to access the application form.

Filling the Application Form:

• Provide beneficiary details: name, age, category (SC/ST, women, etc.).
• Land/farm details: location, land ownership proof, size eligible for oil palm cultivation.
• Component selection: choose the inputs, planting material, machinery, or support desired.
• Bank details: bank account number, IFSC code for direct benefit transfer.

Documents to Upload/Submit:

• AADHAAR card for identity proof.
• Land ownership or lease documents.
• Bank passbook or latest bank statement.
• Farmer ID or registration certificate (for SHGs/FPOs/entrepreneurs).
• Quotations or DPRs if required for machinery or processing units.

Application Fee:

• No application fee is required for NMEO-OP.

Acknowledgment and Tracking:

• Upon submission, applicants receive an acknowledgment with a unique application ID.
• This ID must be noted for future tracking and communication.

Verification and Field Inspection:

• Officials may conduct a field visit to verify land and other details.
• Beneficiaries may be contacted for additional information or clarification.

Approval and Assistance Release:

• After verification, the application is approved by the state department.
• Assistance is provided as direct benefit transfer (DBT) to the bank account.
• Timelines vary by state but are usually communicated during approval.

Offline Application Support:

• Farmers can visit Krishi Vigyan Kendra (KVK), Agriculture Department offices, or Block offices for help in filling forms and document submission.
• State nodal officers can guide on portal usage and application status.

Tips for a Smooth Application:

• Ensure name and details match exactly in all documents to avoid rejection.
• Upload clear and valid land records and ID proofs only.
• Submit the application before the deadline specified in the state notification.
• Double-check application form for completeness before submission.

For official assistance, applicants can contact their state agriculture department helpline or visit their nearest KVK or Block office. The national scheme portal https://myscheme.gov.in can provide further guidance and FAQs on NMEO-OP application process.

Challenges or Limitations 

The National Mission on Edible Oils – Oil Palm (NMEO-OP) has several challenges and limitations that are commonly recognized by officials and policy experts. These challenges affect smooth implementation but can be managed with practical solutions to help farmers and stakeholders fully benefit from the scheme.

Challenge: Slow awareness and adoption by farmers

Many farmers are still unaware of the scheme’s benefits or unsure about oil palm cultivation.

What to do: Implement stronger information and training programs through local agriculture offices and Krishi Vigyan Kendras to build farmer confidence.

Challenge: Verification and documentation delays

Delays often occur in verifying land ownership and documents, which slows down subsidy approvals.

What to do: Keep land and identity documents updated and submit complete, clear paperwork to avoid verification issues.

Challenge: Limited budget and resource constraints

Sometimes the funds allocated may not fully meet the growing demand, especially in new states adopting oil palm cultivation.

What to do: Farmers and agencies can leverage flexi funds and coordinate with other schemes to maximize resource use.

Challenge: Long gestation period of oil palms

Oil palm trees take 4 years to mature, which may discourage farmers looking for quicker income.

What to do: Use intercropping options supported by NMEO-OP to generate income while oil palms grow.

Challenge: Uneven implementation across states

Some states face difficulties due to lack of irrigation, infrastructure, or policy consistency.

What to do: States should engage in better planning and coordination with central schemes and private partners for sustainable expansion.

Challenge: Market price volatility

Fluctuating palm oil prices can impact farmers’ income stability despite the viability price mechanism.

What to do: Ensure timely payments under the price support and improve market linkages to stabilize earnings.

Challenge: Environmental concerns from plantation expansion

Clearing land for monoculture plantations may risk soil health and biodiversity.

What to do: Promote sustainable farming practices and land-use planning to protect ecosystems along with oil palm growth.

Challenge: Operational knowledge gaps

Farmers new to oil palm cultivation sometimes struggle with nursery management and crop maintenance.

What to do: Increase access to training, expert advice, and technology adoption through extension services.

Government Support & Future Outlook 

The National Mission on Edible Oils – Oil Palm (NMEO-OP) is closely linked with other central agricultural missions to provide a comprehensive support system for farmers and value chain players. It complements schemes like the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Formalisation of Micro food Processing Enterprises (PMFME), Pradhan Mantri Fasal Bima Yojana (PMFBY), and the Rashtriya Krishi Vikas Yojana (RKVY). This convergence helps streamline funding, training, and insurance support, creating better opportunities for farmers and Farmer Producer Organizations (FPOs).

For example, a farmer growing oil palm under NMEO-OP can simultaneously benefit from PM-KISAN income support and PMFBY crop insurance, reducing financial risks. Meanwhile, FPOs can use PMFME benefits to develop value addition and processing infrastructure, enhancing their profitability and market access.

The NMEO-OP was launched in 2021 with an initial budget of Rs 11,040 crore and aims to increase oil palm cultivation area to 10 lakh hectares by 2025-26. It also subsumes the earlier National Food Security Mission-Oil Palm program. In line with broader goals under the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), launched in 2024 for a seven-year period, the government plans to raise domestic edible oil production to 25.45 million tonnes by 2030-31. Together these missions form a unified roadmap to reduce India’s import dependence and increase farmers’ incomes sustainably.

Conclusion 

The National Mission on Edible Oils – Oil Palm (NMEO-OP) plays a vital role in making India more self-reliant in edible oil production by supporting farmers, self-help groups, and entrepreneurs with financial and technical assistance. This scheme benefits primarily oil palm growers by ensuring price stability, subsidies on planting materials, and access to modern technologies. Those interested in benefiting from NMEO-OP should start by checking their eligibility and application details on the official state agriculture portals or government websites. It is important to prepare all necessary documents, such as land records, identity proof, and bank details, before applying to ensure smooth processing. Always verify the latest updates, criteria, and deadlines on the official portals or through local agriculture offices for accurate information.

Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002620.