Good News on Edible Oil Prices! To reduce the heavy dependence on the import of edible oils, the Modi government took a big decision, approved a plan of Rs 11,040 crore

New Delhi: The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the launch of a new Mission on Palm Oil as a new Centrally Sponsored Scheme called National Mission on Edible Oils – Oil Palm (NMEO-OP). will be known as. With special focus on North East Region and Andaman and Nicobar Islands. A financial outlay of Rs 11,040 crore has been made for the scheme, of which Rs 8,844 crore is the Government of India’s share and Rs 2,196 crore is the state’s share and includes viability gap funding.

“Due to heavy dependence on imports edible oilIt is important to make efforts to increase the domestic production of edible oils, in which the growing area and productivity of palm oil play an important role, an official release said.

Under the scheme, it is proposed to cover an additional area of ​​6.5 lakh hectares (ha) for palm oil by the year 2025-26 and eventually reach the target of 10 lakh hectares. Crude palm oil (CPO) production is expected to reach 11.20 lakh tonnes by 2025-26 and 2.8 million tonnes by 2029-30.

People will benefit immensely from this scheme palm oil farmerIncrease in capital investment, create employment, reduce dependence on imports and increase the income of farmers.

“Several efforts have been made by the Government of India to increase the production of oilseeds and palm oil since 1991-92. Oilseeds production has increased from 275 lakh tonnes in 2014-15 to 365.65 lakh tonnes in 2020-21. Exploitation. The potential for palm oil production, in the year 2020, has been an assessment by the Indian Institute of Oil Palm Research (IIOPR) for palm oil cultivation, which has given an assessment of about 28 lakh hectares. Thus, there is a huge potential Palm oil plantation and later Crude Palm Oil (CPO) production. Presently only 3.70 lakh hectares of oil palm is under cultivation. Oil palm produces 10 to 46 times more oil per hectare than other oilseed crops and It has a yield of about 4 tonnes of oil per hectare. Thus, there is a lot of potential for its cultivation,” the official statement said.

Keeping in view the above, and also keeping in view the fact that even today about 98% of CPOs are being imported, it is proposed to initiate a scheme to further increase the area and production of CPOs in the country. The proposed scheme will subsume the existing National Food Security Mission-Oil Palm programme.

The plan has two major focus areas. Palm oil farmers produce Fresh Fruit Bunch (FFB) from which the oil is extracted by the industry. Currently the prices of these FFBs are linked to the fluctuations in international CPO prices.

For the first time, the Government of India will provide price assurance for FFBs to oil palm farmers. This will be known as the Viability Value (VP). This will protect farmers from volatility and volatility in international CPO prices. This VP will be the annual average CPO value of the last 5 years adjusted with the Wholesale Price Index multiplied by 14.3%. This will be determined annually from November 1 to October 31 for the oil palm year. This assurance will instill confidence among the Indian palm oil farmers for the increased area and thus more palm oil production. A Formula Price (FP) will also be fixed which will be 14.3% of the CPO and will be fixed on a monthly basis. The Viability Gap Funding will be VP-FP and if required it will be paid directly into the farmers’ accounts in the form of DBT.

This assurance to the farmers will be in the form of Viability Gap Funding and the industry will be required to pay 14.3% of the CPO value which will eventually become 15.3%. There is a sunset section to this plan which is 1 November 2037. To give impetus to the North-East and Andaman, the government will bear an additional 2% of the CPO price to ensure that equal payment is made to the farmers. Rest of India. The States adopting the mechanism proposed by the Government of India will be benefitted by the Viability Gap payment proposed in the scheme and for this they will enter into a Memorandum of Understanding (MoU) with the Central Government.

The second major focus of the scheme is to substantially increase the support for inputs/interventions. Substantial increase has been made for planting material for palm oil and it has been increased from Rs 12,000 per hectare to Rs 29000 per hectare. In addition, substantial enhancements have been made for maintenance and inter-crop interventions. For the restoration of old gardens, special assistance is being given at the rate of Rs.250 per plant for re-planting old gardens.

To overcome the problem of shortage of planting material in the country, seed gardens will be provided assistance of up to Rs.80 lakh for 15 hectares. 100 lakh for 15 hectares in the rest of India and in the North-East and Andaman regions. In addition, assistance for seed gardens at the rate of Rs 40 lakh and Rs 50 lakh for rest of India and North-East and Andaman regions respectively. Apart from this, special assistance will be provided for North-East and Andaman regions in which special provisions are being made for integrated farming as well as half moon terrace farming, bio fencing and land clearance. Provision of Rs.5 crore per unit of Rs.5 crore/hr unit with proportionate increase for higher capacity, for North East states and Andaman, for capital support for industry. This will attract industry to these areas.

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