National Mission on Edible Oils- Oil Palm

National Mission on Edible Oils - Oil Palm (NMEO-OP) is a centrally sponsored scheme of the Ministry of Agriculture and Farmers Welfare that helps expand oil palm cultivation across the country and cut dependence on imported edible oils. The mission has brought an extra 2.73 lakh hectares under oil palm, taking the total cultivated area to 6.40 lakh hectares as on 31 March 2026.

NMEO-OP is under implementation in 15 states and continues to run with annual action plans for 2026-27. Farmers, processors, universities and state departments can all take part and get support for area expansion, planting material, drip irrigation and oil palm processing mills.

National Mission on Edible Oils - Oil Palm

National Mission on Edible Oils - Oil Palm helps farmers and agricultural departments improve edible oilseed production and oil availability. The scheme encourages large scale oil palm area expansion and raises the production of crude palm oil to strengthen the national economy. As on 31 March 2026, the mission is being implemented in 15 states, namely Andhra Pradesh, Telangana, Chhattisgarh, Gujarat, Karnataka, Odisha, Tamil Nadu, Goa, Kerala, Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland and Tripura. Out of these, 13 states have signed a memorandum of understanding with the Government of India, while Telangana and Andhra Pradesh are yet to sign it.

Key people involved include the state department of agriculture, horticulture departments, central universities, ICAR institutions, SAUs, KVKs and local processors, who work together for the smooth rollout of this mission. The state governments act as the main nodal agencies and partner with private investors to expand operations. Eligible people can get support for many farming needs, from planting materials to oil palm processing mills.

Support covers several development areas given in the table below:

Key Information

Latest Update

The mission is running well and has crossed several targets. As on 31 March 2026, an extra 2.73 lakh hectares has been brought under oil palm, taking the total area to 6.40 lakh hectares. During 2021-22 to 2025-26, about 114.66 lakh tonnes of fresh fruit bunches were harvested, which produced 20.10 lakh tonnes of crude palm oil. There are now 27 working oil palm processing mills with a combined capacity of 918.5 tonnes per hour.

For the price support system, the Viability Price for fresh fruit bunches has been set at ₹15,488 per tonne for 2025-26. The Government of India has released ₹18.90 crore under the Viability Gap Payment scheme, helping 9,244 oil palm farmers in Goa, Tamil Nadu, Gujarat, Karnataka, Odisha, Arunachal Pradesh, Assam and Mizoram. A total of 153 seed nurseries with an annual capacity of 500.43 lakh planting materials have been set up, and 47 more nurseries were approved during 2025-26.

The mission aims to raise domestic edible oil production, including palm oil, to 25.45 million tonnes by 2030-31, meeting about 72% of the projected requirement and cutting import dependence from around 57% to 28%. The total Government of India allocation under NMEO-OP for 2021-22 to 2025-26 is ₹4,050.56 crore, with an expenditure of ₹1,196.60 crore incurred against a release of ₹1,490.25 crore as on 31 March 2026.

Benefits

This scheme gives complete support to strengthen farming operations. The main benefits are:

• Boosting the overall production and productivity of oil palm crops, which helps raise farmer income and lowers the import bill.
• Promoting and spreading modern farming methods to the doorstep, including better water management and intercropping support.
• Providing good quality planting materials through seed gardens and nurseries to get better yields.
• Offering expert help for nutrient and pest management so plants stay healthy.
• Supplying modern farm implements, machinery and water management infrastructure like drip irrigation and pipes.
• Helping with training for farmers and efficient harvesting technology.

Eligibility

Any interested person who owns or cultivates land can apply for this mission. Whether a small farmer or a larger business entity, eligible people can get the scheme benefit by meeting the document requirements. There is no specific age limit and no area restriction for individual farmers, which makes it easier to apply for subsidies and support regardless of farm size.

Application Process

Offline Application

The application is done through the state agriculture department. Follow these steps to apply:

STEP 1 - Contact the local District Agriculture Officer or Block Agriculture Officer to show interest and collect the required application forms.

STEP 2 - Submit the proposal to the district office. The State Level Sanctioning Committee (SLSC) will finalise these proposals based on the Annual Action Plan (AAP) of the state.

STEP 3 - Once the state government sanctions the project, funds are released to the district level.

STEP 4 - The district agriculture department then allocates these funds directly to the eligible beneficiary.

Documents

To make the application easy, keep the following documents ready:

• Valid ID proof such as Aadhaar or Voter ID.
• Land ownership or lease documents.
• Active bank account details for financial transactions.
• Recent passport size photographs.

Specific requirements may change depending on the support type or the state. It is always a good idea to confirm the final document list with the local district agriculture office.

References

National Mission on Edible Oils Official Website

View Official Guidelines PDF

PIB Press Release on Crude Palm Oil Production

FAQ's

Is the scheme still running in 2026?

Yes, National Mission on Edible Oils - Oil Palm is under implementation in 15 states and continues with annual action plans for 2026-27. New nurseries, seed gardens and processing mills are being approved regularly.

What is the fund flow mechanism for the scheme?

The central and state shares for this scheme are distributed through the Public Financial Management System (PFMS) to make sure the money reaches eligible people on time and with clarity.

Is there a role for Panchayati Raj Institutions (PRIs) under the scheme?

Yes, state governments are encouraged to involve PRIs in identifying eligible people and prioritising local activities. They also work with NGOs, self help groups and private companies to find priority areas and support farmers.

What is the role of processors in the Mission?

Processors are important partners. They can set up seed gardens and nurseries and distribute planting materials. They also work with state authorities by submitting annual action plan targets for area expansion.

Is there any age criteria for availing scheme benefits?

There is no specific age limit. Any farmer who owns the land may get support under this scheme.

Is there a preference for certain gender or caste of farmers?

The scheme is open to all, but it supports inclusive growth by setting aside specific resources, such as 17% for Scheduled Caste farmers and 8% for Scheduled Tribe farmers, for use across mission components.

What is the Viability Gap Payment under the scheme?

To protect farmers from sudden falls in international prices, the government declares a Viability Price every year. If the monthly Formula Price drops below this Viability Price, the Viability Gap Payment is given to the farmers to cover the difference.