NMEO-OP (Syllabus: GS Paper 3 – Economy)

Context: Prime Minister of India recently inaugurated the first Oil Palm Processing Mill under National Mission for Palm Oil in Arunachal Pradesh.

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

• About: NMEO-OP is a Centrally Sponsored Scheme to augment the availability of edible oil in the country by harnessing area expansion, increasing crude palm oil production with the aim to reduce the import burden.
• Launched: 2021.  
• Target: 

oTo increase area of oil palm to 10 lakh hectares from 3.5 lakh ha during 2019-20 by 2025-26 (additional 6.50 lakh ha). 

oThe target for general states is 3.22 lakh hectares and 3.28 lakh ha for North Eastern states, with targeted FFB production of 66.00 lakh tonnes. 

oTo increase in Crude Palm Oil production from 0.27 lakh tonnes during 2019-20 to 11.20lakh tonnes by 2025-26 and 28 lakh tonnes by 2028-29.

oIncrease consumer awareness to maintain consumption level of 19.00 kg/person/annum till 2025-26.

• Salient Feature: 

oAssistance for planting material.

oInputs for intercropping up to gestation period of 4 years and for maintenance

oEstablishment of seed gardens, nurseries, micro irrigation, bore well/pumpset/water harvesting structure, vermi compost units, solar pumps, harvesting tools, custom hiring centre cum harvester Groups, farmers and officers training, and for replanting of old oil palm gardens etc.

Oil Palm Production in India

• Composition of Imports: Palm oil constitutes the largest share of imports, approximately 57%, followed by soybean oil at 29%, and sunflower oil at 14%.
• Primary Sources of Imports: Indonesia and Malaysia are the primary sources of imported palm oil, while Argentina and Brazil serve as major exporters of soybean oil to India.
• Sunflower Oil Imports: Sunflower oil imports primarily originate from Russia and Ukraine, with Romania and the Netherlands emerging as new partners in the current oil year.
• Major Oil Palm Growing States: Andhra Pradesh, Telangana, and Kerala collectively contribute to 98% of the total production, with Andhra Pradesh being the largest producer.