Why in the news-

• The Prime Minister highlighted the National Mission on Edible Oils – Oil Palm (NMEO-OP) during his visit to Arunachal Pradesh, inaugurating the first oil mill under this mission.

Why discuss this?

• This results in a substantial outflow of $20.56 billion in foreign exchange, the need for self-reliance in edible oil production has become paramount.

Mission Palm Oil: A Catalyst for Self-Reliance

• It is a Centrally Sponsored Scheme launched in 2021 targeting a substantial increase in oil palm cultivation and crude palm oil production.
• It has been introduced with a particular emphasis on the Northeast region and the Andaman and Nicobar Islands.

Objectives:

1. Expand oil palm acreage by an additional 6.5 lakh hectares by 2025-26
2. Increase crude palm oil production to 11.2 lakh tonnes by 2025-26, reaching up to 28 lakh tonnes by 2029-30.
3. Increase consumer awareness to maintain a consumption level of 19.00 kg/person/annum till 2025-26.

Focus Areas

(1)  Fixing of Viability Price

• Oil palm farmers currently produce Fresh Fruit Bunches (FFBs), from which the industry extracts oil.
• Presently, FFB prices fluctuate with international Crude Palm Oil (CPO) prices.
• The Government of India will now assure price stability for FFBs, known as Viability Price (VP), shielding farmers from international CPO price fluctuations.
• A Formula Price (FP), set at 14.3% of CPO and adjusted monthly, will be established. Viability gap funding will be the difference between VP and FP, directly disbursed to farmers’ accounts via Direct Benefit Transfer (DBT) when necessary.

(2) Input Assistance

• The scheme’s second major focus is to significantly enhance input assistance/interventions, including:

• 1. Increasing assistance for oil palm planting material from Rs. 12,000 to Rs. 29,000 per hectare.
  2. Boosting support for maintenance and intercropping interventions.
  3. Providing special assistance of Rs. 250 per plant for replanting old gardens to rejuvenate them.
  4. Offering special assistance tailored for the North-East and Andaman regions, including provisions for half-moon terrace cultivation, bio-fencing, land clearance, and integrated farming.

Try this PYQ from CSE Prelims 2019:

Among the following, which one is the largest exporter of rice in the world in the last five years?

(a) China

(b) India

(c) Myanmar

(d) Vietnam

Practice MCQ:

Consider the following statements:

1. India is the world’s biggest importer of vegetable oils.
2. The top three vegetable oil imports include – soybean, palm and groundnut oil.

Which of the given statements is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

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