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The Government of India is implementing the National Mission on Edible Oils (NMEO) through two components -NMEO–Oil Palm (NMEO-OP) and NMEO–Oilseeds (NMEO-OS), to reduce India’s heavy dependence on edible oil imports. In 2023–24, imports met about 56% of domestic edible oil demand.

NMEO – Oil Palm (NMEO-OP)

• About:Launched in 2021 as a Centrally Sponsored Scheme, NMEO-OP aims to expand oil palm cultivation and increase domestic Crude Palm Oil (CPO) production.
• Financial Outlay: ?11,040 crore
• Key Features
  • Viability Price (VP): Price assurance mechanism to protect farmers from fluctuations in global CPO prices
  • Higher Subsidies: Assistance for planting material increased significantly (up to ?29,000/ha) along with maintenance support
  • Rejuvenation Aid: ?250 per plant for replacing old palms
  • Regional Focus: Special emphasis on North-East India and traditional states like Andhra Pradesh and Telangana
• Targets
  • Area Expansion: 6.5 lakh hectares under oil palm by 2025–26
• Production:
  • 11.2 lakh tonnes CPO by 2025–26
  • 28 lakh tonnes CPO by 2029–30
• Consumption Benchmark: Maintain edible oil consumption at 19 kg/person/year till 2025–26
• Progress
  • 2.5 lakh hectares added under NMEO-OP (as of Nov 2025)
  • Total oil palm area reached 6.2 lakh hectares
  • CPO production rose from 1.91 lakh tonnes (2014–15) to 3.8 lakh tonnes (2024–25)

NMEO – Oilseeds (NMEO-OS)

• About:Approved in 2024 for the period 2024–25 to 2030–31, NMEO-OS focuses on achieving self-sufficiency in edible oils by boosting production of major oilseed crops.
• Coverage: Targets 9 major oilseed crops including:Mustard, Groundnut, Soybean, Sunflower, Sesame, Safflower, Niger, Castor, and Linseed
  • Also promotes oils from secondary sources such as cottonseed, rice bran, coconut, and tree-borne oilseeds (neem, jatropha, karanja, mahua, simarouba).

Key Objectives

• Bridge yield gaps via improved seeds and technologies
• Expand area using fallow lands and intercropping
• Strengthen seed systems and market access
• Promote value addition and higher farmer returns

Targets

• Increase oilseed area from 29 million ha (2022–23) to 33 million ha (2030–31)
• Raise oilseed production from 39 million tonnes to 69.7 million tonnes
• Add 40 lakh hectares through crop diversification and fallow land use

Combined Impact of NMEO

Together, NMEO-OP and NMEO-OS aim to produce 25.45 million tonnes of edible oil by 2030–31, meeting about 72% of India’s domestic demand.

Implementation Support

• Self-Help Groups and Krishi Sakhis act as Community Agriculture Service Providers (CASPs)
• Use of Krishi Mapper digital platform for real-time monitoring

Oilseeds in India — Key Facts

• Oilseeds are India’s second most important crop group after food grains
• Cover 14.3% of gross cropped area
• Provide 12–13% of dietary energy
• Major producing states: Rajasthan (mustard), Madhya Pradesh (soybean), Gujarat, Maharashtra
• Oil palm concentrated in Andhra Pradesh & Telangana, expanding in North-East states

Economic Importance

• Key source of dietary fats and vitamins (A, D, E, K)
• Important cash crops for farmer income
• Contribute ~8% of agricultural exports
• Domestic edible oil production: 12.18 million tonnes (2023–24) vs high demand

Reasons for Import Dependence

• Decline in self-sufficiency after import duty reductions post-WTO reforms
• 76% oilseed area is rainfed, making production climate-vulnerable
• Rising consumption: Rural intake up 83.68%, urban up 48.74% (2004–05 to 2022–23)