Union Cabinet approved NMEO-OP scheme with a budget of ₹ 11,040cr

On Wednesday, the Union Cabinet green signalled the launch of the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a new centrally sponsored scheme with a five-year budget of ₹ 11,040 crores. The central government will contribute ₹ 8,844 crores to the ₹ 11,040 crore outlay, while the states will contribute ₹ 2,196 crores.

The program’s goal will be to expand the area and productivity of oilseeds and palm oil. The north-eastern region, as well as the Andaman and Nicobar Islands, will receive special attention.

Also Read: Edible oils imports dropped by 27% in Feb 2021 due to excessive imports and higher prices

‘This will certainly increase capital investment in the segment, help generate employment, reduce reliance on imports, and increase farmer income,’ said Union Agriculture Minister Narendra Singh Tomar.

According to the minister, the government will also develop a mechanism to fix and regulate pal oil prices.

It is said to cover an additional area 6.5 lakh hectares for oil palm cultivation until 2025-2026 that would to reach a set target of 10 lakh hectares. And the Crude Palm Oil (CPO) production is anticipated to reach 11.20 lakh tonnes by 2025-2026 and 28 lakh tonnes by 2029-2030.

To address the country’s planting material shortage, seed gardens will be given up to ₹ 80 lakh for 15 ha in most states and ₹ 100 lakh for 15 ha in the North-East and Andaman regions.

In addition, the union Cabinet Committee on Economic Affairs (CCEA) has approved a sum amount of  ₹ 77.45 crore package for the betterment of the state-run North Eastern Regional Agricultural Marketing Corporation(NERAMAC).

The NERAMAC is a central public-sector enterprise overseen by the Ministry of Development of the North Eastern Region (MDoNER).

Also Read: Imports of edible oil fell by 20% in June, owing to increased inventory in the country

According to Anurag Thakur, Minister of Information and Broadcasting, the revival package will assist NERAMAC in implementing various innovative plans such as providing better farming facilities, training farmers in clusters, seeds and fertilizer, and post-harvesting facilities to promote organic farming and the products of north-east farmers in the global market.