**Policy Summary: National Mission on Edible Oils - Oil Palm (NMEO-OP)**
This policy addresses India's dependence on imports of Crude Palm Oil (CPO), primarily from Malaysia and Indonesia, to meet domestic demand. The Government of India is implementing the centrally sponsored scheme, National Mission on Edible Oils – Oil Palm (NMEO-OP), from 2021-22 to 2025-26, to increase domestic oil palm cultivation and CPO production.
Key initiatives and outcomes of the NMEO-OP include:
* **Area Expansion:** As of March 2025, 1.89 lakh hectares have been brought under oil palm cultivation through NMEO-OP, increasing the total area under oil palm in the country to 5.56 lakh hectares.
* **Production Increase:** Crude Palm Oil (CPO) production has increased from 1.91 lakh tonnes in 2014-15 to 3.80 lakh tonnes in 2024-25.
* **Price Support Mechanism:** To ensure fair prices for farmers' Fresh Fruit Bunches (FFBs), state governments declare a monthly Formula Price. The central government also declares a Viability Price to protect farmers from international price fluctuations, providing a Viability Gap Payment (VGP) if the Formula Price falls below the Viability Price.
* **Import Reduction:** As oil palm plantations mature and reach optimal yield from the 8th year onward, CPO production is expected to increase, reducing the reliance on CPO imports.
The Ministry of Agriculture and Farmers Welfare, Department of Agriculture and Farmers Welfare is overseeing the execution of this policy. Shri Ramnath Thakur, the Minister of State for Agriculture and Farmers Welfare, is responsible for answering questions related to this policy in the Lok Sabha.
Key Entities Referenced
National Mission on Edible Oils Oil Palm NMEOOP: A centrally sponsored scheme by the Government of India to boost oil palm cultivation.
Crude Palm Oil CPO: A type of edible oil that India imports significantly.
Malaysia: One of the world's largest producers of Crude Palm Oil, from which India imports.
Indonesia: One of the world's largest producers of Crude Palm Oil, from which India imports.
SHRI RAMNATH THAKUR: Minister of State for Agriculture and Farmers Welfare.
Fresh Fruit Bunches FFBs: Produce from which palm oil is extracted. Farmers are paid based on these.
Viability Gap Payment VGP: Payment provided to farmers if the Formula Price drops below the Viability Price.
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmer welfare.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1514
TO BE ANSWERED ON THE 29TH July, 2025
PRODUCTION OF CRUDE PALM OIL
1514. SHRI VE VAITHILINGAM:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण
मं(cid:361)ी be pleased to state:
(a) whether the Government has taken cognizance of the fact that the country does
not produce much Crude Palm Oil (CPO) to feed the refineries and is dependent on
the world’s largest producers that is Malaysia and Indonesia for over 90 per cent of its
CPO requirement;
(b) whether the Government has taken any initiative to increase the cultivable area of
Palm tree, if so, the details of increase in area with extent and increase in
yield/production of palm oil;
(c) whether the Government has fixed any Minimum Support Price or Fair Market Price
for procurement of Palm produced; and
(d) whether the import of CPO reduced due to the initiatives taken by the Government?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) & (b): Edible oil imports are required to bridge the gap between domestic production
and consumption till self-sufficiency in edible oils is achieved. Government of India is
implementing a centrally sponsored scheme National Mission on Edible Oils - Oil Palm
(NMEO-OP) for the period 2021-22 to 2025-26. NMEO-OP strives to boost oil palm
cultivation in the country through area expansion. Till March 2025, 1.89 lakh hectares
area had been covered under NMEO-OP, taking the total coverage under oil palm in
the country to 5.56 lakh hectares. Crude Palm Oil (CPO) production has risen from
1.91 lakh tonnes in 2014-15 to 3.80 lakh tonnes in 2024-25.(c): To ensure remunerative prices of Fresh Fruit Bunches (FFBs) to farmers, a system
of declaring Formula Price every month (by states concerned) are also followed.
Industries linked with a particular area procure the FFBs from the farmers on declared
monthly Formula Price. Further, to mitigate the price risk of farmers due to sudden
falling of international prices, a system of declaring Viability Price by the central
Government is also followed and the Viability Gap Payment (VGP) is provided to the
farmers in case the Formula Price drops below the Viability Price of the particular year.
(d): With Oil Palm plantation under the mission starts fruiting from 4th year and
achieving optimum yield from 8th year onwards, production is expected to get a boost
in the coming years leading to increased CPO output and reducing reliance on CPO
imports.
*****