Gujarat leads NMEO-OP with over 1,000 metric tons of annual palm oil production
August 20, 2025
Gandhinagar: The demand for edible oil in India is continuously increasing. To meet this demand, India imports large quantities of edible oil from other countries, resulting in a huge expenditure of foreign exchange. To boost domestic production of edible oil and enhance farmers’ income, Prime Minister Narendrabhai Modi launched the nationwide “National Mission on Edible Oil–Oil Palm” (NMEO-OP) in 2021. Today, Gujarat has emerged as a leading state in this mission.
Agriculture Minister Raghavji Patel said that oil palm, also known as golden palm, produces the highest oil yield per hectare compared to other oilseed crops in the country. Therefore, 18 districts of Gujarat have been included under NMEO-OP to promote oil palm cultivation. Farmers in Gujarat have cultivated oil palm on nearly 5,000 hectares over the last 10 years, helping the state secure the seventh position in the country with an annual production of more than 1,000 metric tons of palm oil.
Oil palm plantation is steadily expanding every year in Gujarat. This year alone, it has been planted on about 235 hectares, and it is estimated that the total new plantation will reach 1,000 hectares by the end of the year.
Since 2021, more than Rs. 122 lakh has been provided to farmers under various components of NMEO-OP to promote oil palm cultivation in the state. Of this, Rs. 18.5 lakh was allocated for planting material (Ropa), Rs. 23.7 lakh for four-year maintenance, Rs. 17.8 lakh for intercropping, Rs. 11.2 lakh for borewells or pump sets, and over Rs. 51 lakh for the purchase of harvesting equipment and mini tractors.
To increase productivity, farmers are supplied with high-quality Tenera variety oil palm seedlings from recognized companies. In collaboration with the Horticulture Department and private firms, farmers also receive training and guidance on scientific farming practices, pest and disease management, and harvesting techniques. Mega oil palm plantation drives are also being organized to encourage large-scale cultivation. The fresh fruit bunches (FFB) produced by farmers are bought back by associated companies at remunerative prices linked to international market rates.
Palm oil extracted from oil palm fruit is the most widely used edible oil in the world. Its long shelf life and low cost make it popular in processed foods as well as in Indian households. Palm oil and its derivatives are also widely used in the biofuel industry, pharmaceuticals, and the production of cosmetics, oleochemicals, soaps, and shampoos.
Oil palm trees bear fruit for about 30 years once planted, providing farmers with a sustainable source of regular income. As a result, the earnings of progressive farmers in Gujarat have increased, making them more economically secure. Today, Gujarat’s farmers are contributing towards the dream of making India self-reliant in the edible oil sector through oil palm cultivation. This government initiative is expected to brighten the future of farmers.
Assistance to farmers under NMEO-OP
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Rs. 20,000 per hectare for indigenous seedlings and Rs. 29,000 per hectare for imported seedlings.
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Rs. 40,000 per hectare for crop maintenance and intercropping after planting.
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50% of the cost or a maximum of Rs. 50,000 per unit for borewells or pump sets.
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Assistance for harvesting and farming equipment: Rs. 2,500 for a hand-operated oil palm cutter, Rs. 20,000 for protective wire mesh, Rs. 15,000 for a motorized chisel, Rs. 5,000 for portable ladders and poles, and Rs. 50,000 for a chaff cutter.
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40% of the cost or a maximum of Rs. 2,00,000 for mini tractors and trolleys up to 20 horsepower, provided to farmers with oil palm plantations of at least 0.5 hectares and more than three years old.
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