**Policy Summary: National Mission on Edible Oils - Oil Palm (NMEOOP)**
The Indian government is implementing the National Mission on Edible Oils - Oil Palm (NMEOOP), a centrally sponsored scheme operating from 2021-22 to 2025-26. The NMEOOP aims to increase domestic crude palm oil (CPO) production through area expansion of oil palm cultivation, reducing the reliance on edible oil imports. As of March 2025, 1.89 lakh hectares have been covered under NMEOOP, bringing the total oil palm coverage in India to 5.56 lakh hectares. CPO production has increased from 1.91 lakh tonnes in 2014-15 to 3.80 lakh tonnes in 2024-25.
To protect farmers, state governments declare a monthly Formula Price for Fresh Fruit Bunches (FFBs), which industries in the area use for procurement. The central government also declares a Viability Price, and provides a Viability Gap Payment (VGP) to farmers if the Formula Price falls below the Viability Price in a given year, mitigating risks from fluctuating international prices. Oil palm plantations start producing fruit from the fourth year and reach optimum yield from the eighth year, which is expected to boost CPO production in the coming years.
This information was provided by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in Lok Sabha on July 29, 2025.
Key Entities Referenced
National Mission on Edible Oils Oil Palm NMEOOP: A centrally sponsored scheme implemented by the Government of India to boost oil palm cultivation and increase domestic edible oil production.
Crude Palm Oil CPO: A type of edible oil produced from oil palm fruits, with production figures cited in the context of domestic production.
Fresh Fruit Bunches FFBs: The raw material from which palm oil is extracted, with prices determined by a Formula Price system.
Formula Price: A monthly price declared by state governments for Fresh Fruit Bunches (FFBs) to ensure remunerative prices for farmers.
Viability Price: A price declared by the central Government to mitigate the price risk of farmers due to fluctuations in international prices.
Viability Gap Payment VGP: A payment provided to farmers when the Formula Price for FFBs falls below the Viability Price, compensating for the price difference.
Lok Sabha: The lower house of the Parliament of India, where information regarding the NMEOOP was presented.
Shri Ramnath Thakur: Minister of State for Agriculture and Farmers Welfare who provided information regarding the NMEOOP in a written reply in Lok Sabha.
Ministry of Agriculture & Farmers Welfare
PRODUCTION OF CRUDE PALM OIL
Posted On: 29 JUL 2025 4:00PM by PIB Delhi
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.
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.
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With Oil Palm plantation under the mission starts fruiting from 4 year and achieving optimum yield from 8
year onwards, production is expected to get a boost in the coming years leading to increased CPO output and
reducing reliance on CPO imports.
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur
in a written reply in Lok Sabha today.
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RC/ KSR/AR
(Release ID: 2149701)