The Oil Palm Mission may not be able to meet the target of covering an additional area of 6.64 lakh hectares (lh), in an apparent setback to government’s announcement to make the country self-sufficient in edible oil. There is likely to be a wide gap between what the government targeted and what has been achieved so far.
It is learnt that against the target to cover additional area of 6.64 lh between 2021-22 and 2025-26, less than 2 lh have been planted so far. The plan is to speed up it this year and cover another 2.5 lh by March 31, 2026.
The centrally sponsored scheme, National Mission on Edible Oil - Oil Palm (NMEO-OP), was launched in August 2021. It was aimed at raising crude palm oil production to 11.20 lakh tonnes (lt) by 2025-26 by bringing an additional area of 1.79 lh in north-eastern States and 4.85 lh in nine other States by FY26 end. The scheme is implemented by the Union and State governments in the ratio of 60:40 for general States and 90:10 for N-E states.
Gujarat a drag
Gujarat has covered additional area of only 105 hectares in last four years against a target of 7,600 hectares in the entire mission period of five years, which is the lowest among the States. On the other hand, the top performer is Andhra Pradesh where the additional area is nearly half of its targeted 68,000 hectares. Telangana has achieved 32 per cent of its target, Tamil Nadu 26 per cent and Odisha 23 per cent.
Among the north-eastern States, only 29 hectares of additional area has been brought under oil palm in the last four years in Manipur against a 13,350 hectares target. But 24 per cent of the target each in Arunachal Pradesh, Mizoram and Nagaland has been met.
Out of 1.79 lh targeted in N-E States, only about an additional area of 29,000 hectares has been created, whereas against 4.85 lh target in other States, 1.6 lh have been brought under oil palm, sources said.
“Monitoring by the Centre in past four years has been insufficient and it started only a few months ago. Since it has to be mainly driven by the private sector companies’ interest, the states have little role to play except to speedily dispose of application and providing all necessary permissions,” said a State government official where the achievement is marginally lower than all-India average of 29 per cent. He suggested changes in the NMEO-OP guidelines in the next term of five years after consultation with the private sector.
Aid under NMEO-OP
As the oil palm mission is also to play a key role in augmenting edible oil availability to attain near self-sufficiency, noted expert and former Managing Director of Amul, BM Vyas, suggested a competent and committed team to lead the oilseeds mission programme. Besides, what is more important is freedom to take decision and necessary actions with active involvement of farmers, he said.
Under NMEO-OP’s Viability Gap Payment (VGP) provision, the differential amount paid by the government directly through Direct Benefit Transfer (DBT) to the farmers, when the industry’s payable price (based on average market rate for a particular period) falls below the government-set rate, which is declared for every oil palm year (November-October) to ensure that farmers get a minimum assured price, irrespective of fluctuations in market rates.
Besides, NMEO-OP offers special assistance of ₹1,00,000 per hectare to farmers for planting material, management, and to address the topographical challenges (land clearance, half-moon terrace construction, bio-fencing) faced by them in the North-East. It also provides ₹2,90,000 for the purchase of harvesting tools to farmers.