## Summary of Enhanced Financial Assistance under the National Mission on Edible Oils - Oil Palm (NMEO-OP)
The Ministry of Agriculture & Farmers Welfare is enhancing financial assistance to oil palm farmers nationwide, including those in Odisha, under the National Mission on Edible Oils – Oil Palm (NMEO-OP). This initiative, effective from August 1, 2025, supports farmers through various components:
**Key Areas of Support:**
* **Planting Material:** Subsidies are provided for purchasing planting material during the first year: ₹20,000/ha for indigenous seedlings and ₹29,000/ha for imported seedlings (including transport costs) for the entire land holding.
* **Maintenance & Management:** ₹42,000/ha is provided during the gestation period of 4 years in General States, and ₹50,000/ha for NER (North East Region).
* **Intercropping:** One-time assistance is provided as a subsidy for necessary infrastructure setting up.
* **Seed Gardens & Nurseries:** Support is provided for establishing new seed gardens with a capacity of 10 lakh seedlings per year (minimum 15 ha area). Assistance includes ₹80.00 lakh for RoI and ₹100.00 lakh for NER. For nurseries, ₹40.00 lakhs for RoI and ₹50.00 lakhs for NER is allocated.
* **Drip Irrigation:** Assistance is provided as per Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) norms. Bore well/Pump set/water harvesting structure is as per Mission for Integrated Development of Horticulture (MIDH) guidelines.
* **Solar Pumps:** Assistance is provided as per Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) norms.
* **Harvesting Tools:** Vermi compost unit, Cutter (₹2500), Wire Mash (₹20000), Motorized chisel (₹15000), Potable ladder-polls (₹5000), Chaff Cutter (₹50000), Tractor with trolly (₹200000)
* **Custom Hiring Centers cum Harvester Groups:** A one-time grant of ₹25.00 lakh per unit is available for equipment, tools, training, contingencies, and maintenance. These centers will be created by processors, State SHGs, FPOs, and Registered societies.
* **Farmers & Officers Training:** Farmer training is supported with ₹30000 per training for a batch of 30 farmers for 2 days (₹500 per participant per day). Officer training is supported with ₹40000 per training for a batch of 20 officers for 2 days (₹1000 per participant per day).
* **Replanting:** After 25-30 years, a one-time grant of 50% of the cost (₹250 per plant) is provided for uprooting old plants, replacing them, and digging new pits.
* **R&D and Centres of Excellence:** Need-based support will be extended to ICAR/SAUs/CAUs.
**Viability Gap Payment (VGP):**
* A price assurance mechanism in the form of Viability Gap Payment (VGP) has been introduced to protect farmers from price volatility and ensure profitable returns.
**Implementation Period:** The assistance rates are applicable from 2021-22 to 2025-26.
**Source:** This information was provided by the Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in Rajya Sabha.
Key Entities Referenced
National Mission on Edible Oils Oil Palm NMEOOP: A government initiative to promote oil palm cultivation and increase edible oil production in India.
Odisha: A state in India where oil palm farmers are receiving financial assistance under the NMEOOP.
Viability Gap Payment VGP: A price assurance mechanism introduced to protect oil palm farmers from price volatility.
North East Region NER: A region in India, which receives enhanced financial assistance under the NMEOOP scheme.
Pradhan Mantri Krishi Sinchayee Yojana PMKSY: A government scheme related to irrigation, used as a reference for drip irrigation norms under NMEOOP.
Mission for Integrated Development of Horticulture MIDH: A government mission related to horticulture development, used as a reference for bore well and water harvesting guidelines.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan PMKUSUM: A government scheme related to solar pumps, used as a reference for solar pump norms.
Rajya Sabha: The Upper House of the Parliament of India, where information regarding the NMEOOP was provided.
Ministry of Agriculture & Farmers Welfare
ENHANCEMENT OF FINANCIAL ASSISTANCE
UNDER NATIONAL MISSION ON EDIBLE OILS –
OIL PALM (NMEO-OP)
Posted On: 01 AUG 2025 4:33PM by PIB Delhi
Under the National Mission on Edible Oils – Oil Palm (NMEO-OP), financial assistance is being extended to
oil palm farmers across the country, including Odisha, for various components such as planting material,
maintenance/management, intercropping in oil palm fields, installation of drip irrigation systems, machinery
support, and replanting of old gardens. In addition, a price assurance mechanism in the form of Viability Gap
Payment (VGP) has been introduced to safeguard farmers against price fluctuations and ensure remunerative
returns. A statement showing the component-wise financial assistance norms under NMEO-OP is placed at
Annexure-I.
Annexure-I
Rate of Assistance of Various components under NMEO (OP)
S. No Components Assistance (2021-22 to 2025-26)
For purchasing of planting material, during 1st year, ₹ 20,000/ha for
1 Planting Material indigenous & ₹ 29,000/ ha for imported seedlings (including transport
cost) will be provided to the farmers for entire land holding.
Management upto
2 gestation period (4
During gestation period for 4 years, ₹ 42,000/ha will be provided to
yrs)
farmers in General States & ₹ 50,000/ha for NER (North East Region)
Inputs for
3
intercropping
One-time assistance as subsidy for necessary infrastructure & setting up
Establishment of of new seed garden (capacity 10.00 lakh seedlings per year) having at
4 Seed Gardens and least 15 ha area will be provided as per table given below:
Seed Nurseries i. ₹ 80.00 lakh for ROI and ₹ 100.00lakh for NER
ii. For nursery, ₹ 40.00 lakhs for RoI and ₹ 50.00 lakhs for NER
5 Drip irrigation As per Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) norms
Bore well/ Pump
s e t / w a t e r As per Mission for Integrated Development of Horticulture (MIDH)
h a r v e s t i n g guidelines
6
structure/ Solar pumps: As per Pradhan Mantri Kisan Urja Suraksha evam
Vermi compost Utthaan Mahabhiyan (PM-KUSUM) norms
unit
Tools ₹ per unit
Cutter 2500
Wire Mash 20000
7 Harvesting tools Motorized chisel 15000
Potable ladder/polls 5000
Chaff Cutter 50000Tractor with trolly 200000
Assistance as under
Custom hiring centre cum FFBs harvester group by processors/ State/
Custom hiring
SHGs/ FPOs/ Registered societies will be created in each state
8 c e n t r e c u m
One time grant for ₹ 25.00 lakh per unit for equipment, tools, training,
Harvester Groups
contingencies, maintenance etc.
Farmers Training included Input dealer: ₹ 30000/- per training for a
Farmers & Officers batch of 30 farmers for 2 days (@ 500/- per participant per day).
9
training Officers training ₹ 40000/- per training for a batch of 20 officers for 2
days. (@ ₹ 1000/- per participant per day).
After 25-30 years of age one time grant 50% of the cost @ ₹ 250/- per
Replanting of old
10 plant (uprooting, replacing, and digging of new pit) will be provided for
oil palm garden
replanting of old gardens.
R&D and Centre of
11 Need based support to ICAR/SAUs/CAU
Excellence
This information was given by Minister of State for Agriculture and Farmers Welfare, shri Shri Ramnath
Thakur in a written reply in Rajya Sabha today.
******
RC/ KSR/AR
(Release ID: 2151353)