Cabinet approves implementation of National Mission on Edible Oils Oil Palm

Source: PIB

What is the 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).

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

• NMEO-OP is a Centrally Sponsored Scheme that aims to boost domestic production of Palm Oil and reduce its dependence on imports.
• The mission has a special focus on the North-eastern region and the Andaman and Nicobar Islands.
• Target: The mission hopes to increase the area under oil palm by an additional 6.5 lakh hectares by 2025-26. It also has a target to increase the production of crude palm oil to 11.2 lakh tonnes by 2025-26 and up to 28 lakh tonnes by 2029-30.

Major Focus Areas of the scheme:

Price Assurance:

1. The oil palm farmers will produce Fresh Fruit Bunches(FFBs) from which Palm oil is extracted by the industry. 
2. Presently, the prices of these FFBs are linked to the international Crude Palm Oil(CPO) prices fluctuations. 
3. So if the market is volatile, then the Centre will pay the difference in price to the farmers through direct benefit transfer 
4. This price assurance will be given in the form of viability gap funding, and the industry will be mandated to pay 14.3% of crude palm oil prices.
5. Moreover, in a bid to encourage oil palm cultivation in northeastern India and in the Andaman and Nicobar Islands, the Centre will bear an additional cost of 2% of the crude palm oil prices in these States. 
6. Hence, this will protect the farmers from the fluctuations of the international CPO  prices and protect them from volatility.  

The assistance of Inputs/Interventions: The scheme has been made a substantial increase in the assistance of inputs/interventions:  

1. A substantial increase has been made for planting material for oil palm and this has increased from Rs 12,000 per ha to  Rs.29000 per ha. 
2. Further, a substantial increase has been made for maintenance and intercropping interventions. 
3. Moreover, assistance will be provided to seed gardens to address the issue of shortage of planting material in the country.