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National Mission on Edible Oils -Oil Palm: How India Is Boosting Domestic Palm Oil Production

Overview

India launched the National Mission on Edible Oils – Oil Palm (NMEO-OP) in 2021. It is a Centrally Sponsored Scheme with an outlay of Rs11,040 crore. The mission focuses on oil palm cultivation, crude palm oil (CPO) production, and improving edible oilseed availability in India. India imports about 60% of its edible oil needs. Palm oil alone accounts for 59% of total edible oil imports. The mission aims to reduce this dependence by expanding oil palm farming and increasing domestic CPO output.

 


Latest News: PM Modi Urges Citizens to Cut Oil Consumption

On 20 May 2026, Prime Minister Narendra Modi urged citizens to reduce their oil consumption by 10%. He linked this appeal to both public health and India’s dependence on imported edible oils. Consuming less oil will help Indians stay healthy. It will also reduce the need for imports. This message supports the goals of the NMEO-OP. When people use less oil, the pressure on domestic production and imports both decrease.

What Is the National Mission on Edible Oils – Oil Palm (NMEO-OP)?

NMEO-OP was launched in 2021 as a Centrally Sponsored Scheme. The total budget is Rs11,040 crore. The mission has two main goals. First, to increase oil palm cultivation in India. Second, to boost crude palm oil (CPO) production. The mission also supports farmers with pricing mechanisms, planting material, and technical help.

The mission set clear targets. It aims to bring  6.5 lakh hectares  under oil palm cultivation by 2025-26. In the longer term, the target is  10 lakh hectares . By November 2025, India had already covered  6.20 lakh hectares  under oil palm. This is very close to the first target.

Production Targets and Achievements

India’s CPO production has grown significantly. In 2014-15, the country produced only  1.91 lakh tonnes  of CPO. By 2024-25, production had risen to  3.80 lakh tonnes . This is a good increase, but more is needed.

The mission has set higher targets for the future. By 2025-26, CPO production should reach  11.20 lakh tonnes . By 2029-30, the target is  28 lakh tonnes . Achieving these targets will require hard work from farmers, the government, and the industry.

India’s Edible Oil Dependence: The Problem

India imports around  60% of its edible oil requirement . This is a very high number. Palm oil is a major part of this. Palm oil accounts for over  38% of total edible oil consumption  in India. It makes up  59% of total edible oil imports . India mainly imports palm oil from  Indonesia and Malaysia .

A NITI Aayog report from August 2024 gave some good news. India ranks  first globally  in the production of rice bran oil, castor seed, safflower, sesame, and niger. But domestic output still meets only  44% of the country’s edible oil requirement . The remaining 56% must be imported. This costs the country a lot of money. India’s edible oil import bill was estimated at about  USD 18.3 billion in 2024-25 .

Oil Palm Cultivation: Key Features

Oil palm is a tropical perennial crop. It produces palm oil and palm kernel oil. The crop has a  gestation period of 4-5 years .

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