The Indian government has recently unveiled the National Mission on Edible Oil – Oil Palm (NMEO-OP) as part of its drive towards agrarian self-reliance. Funded by an impressive Rs 11,000 crore over five years, the initiative intends to fortify the country’s palm oil sector. However, environmentalists have voiced concerns over potential deleterious effects of palm oil farming on biodiversity and tribal lands.
About the National Mission on Edible Oil – Oil Palm (NMEO-OP)
The NMEO-OP is a new Centrally Sponsored Scheme aimed at expanding India’s investment in and cultivation of oil palm plantations. The scheme plans to add 6.5 lakh hectares to the overall area under palm oil cultivation by 2025-26, with an end-term goal of reaching 16.7 lakh hectares by 2029-30. Farmers under the scheme will receive financial support, and their income will be secured through a price and viability formula dictated by the government, guaranteeing returns of at least 14.3% of Crude Palm Oil (CPO) price.
Special Focus Areas
The scheme places particular emphasis on India’s North-Eastern states and the Andaman and Nicobar Islands, offering special provisions due to these regions’ favourable climate conditions. A financial provision of Rs. 5 crores of 5 mt/hr will be allocated to attract industry to these areas, supplemented by further resources for those with higher capacity.
Objectives of the Scheme
The mission of the scheme is twofold: to provide a domestic response to lofty palm oil prices driven by imports and to triple domestic palm oil production to 11 lakh MT by 2025-26. By doing so, the scheme hopes to diminish reliance on expensive imports and foster India’s self-sufficiency in edible oil.
Significance of the Scheme
The scheme extends potential benefits to farmers by incentivizing palm oil production, capitalizing on the burgeoning market for the commodity. As the world’s largest consumer of vegetable oil and importer of 55% of its total vegetable oil demand, India stands to benefit from bolstering domestic palm oil production. The majority of India’s palm oil consumption (94.1%) goes toward food products, highlighting the critical role of palm oil in India’s edible oils economy.
Controversial Impact of the Initiative
While the initiative may bring economic gains, it’s not without environmental and social concerns. Critics worry about the impact on tribal lands and the environment, as the water-intensive and mono-cultural nature of oil palm cultivation could spur further deforestation and disrupt fragile ecosystems. Oil palms are considered invasive species outside their native range, posing a significant threat to local biodiversity and soil conditions. Furthermore, health concerns arise due to the high water and pesticide requirements of the crop, coupled with the possibility of farmers receiving unfair prices for fresh fruit bunches.
Way Forward
Addressing these concerns, it’s suggested that similar support be extended to oilseeds indigenous to India, promoting self-reliance while mitigating ecological risks. Voluntary cultivation of oil palm on agricultural land could be encouraged, contingent on appropriate government incentives. Import duties on crude palm oil could also be revised to ensure the mission’s viability. Finally, lessons can be learned from the transformational impact of palm oil in Andhra Pradesh to guide the implementation strategy across potential states, supported by a robust, long-term policy framework that propels the sustainable growth of the crop across India.
