Central Govtadvisory

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

Area expansion and price assurance for oil palm growers with high subsidy on planting material and inputs.

About this scheme

Launched in August 2021 with an outlay of about Rs 11,040 crore, NMEO-Oil Palm focuses on the North Eastern states and the Andaman and Nicobar Islands alongside traditional oil palm states. Its most important feature is the Viability Price mechanism: the government assures growers a formula-linked price for Fresh Fruit Bunches, and pays a Viability Gap Payment through DBT when the market price falls below it. Since oil palm takes about four years to yield, the mission also pays an annual maintenance grant during the gestation period.

Benefits

Assistance of Rs 29,000 per hectare for planting material
Viability Price assurance for Fresh Fruit Bunches with Viability Gap Payment via DBT
Maintenance grant of Rs 5,250 per hectare per year for four gestation years
Assistance for inputs, drip irrigation, bore wells and farm machinery
Support for seed gardens, nurseries and processing mills

Who can apply

Farmers taking up oil palm cultivation in identified potential areas
Land with assured irrigation and suitable agro-climatic conditions
Higher rates of assistance for North Eastern states and Andaman and Nicobar Islands
Grower must have a tie-up with a processor or company for FFB purchase

Documents required

Aadhaar card
Land record
Bank account details
Irrigation or water source proof
Agreement with the oil palm processing company

How to apply

1Contact the State Horticulture Department or the allotted oil palm processing company
2Register the area proposed for oil palm plantation
3Sign an agreement with the allotted company for FFB purchase
4Receive planting material and inputs at subsidised rates
5Assistance and Viability Gap Payment credited to the bank account through DBT

Important dates

Mission period: 2021-22 to 2025-26

Available in: All India

Visit the official portal