NMEO-OP is a robust and bona fide policy frame work, challenges remain in execution
There is a documented record in India- showing the poor outcome when any plantations are not established and manged well from day one, starting from nursery to harvest of the produce and then through replanting cycle. The National Mission on Edible Oils – Oil Plam (NMEO-OP) is indeed a robust and bona fide initiative, designed with holistic framework to enhance edible oil security, unfortunately challenges remain in execution. Its success depends on effective implementation and recalibration wherever required.
Present status
There are certain agronomic levers, like poor nursery management, insufficient irrigation and fertilization, soil management, delayed fresh fruit bunches (FFBs) evacuation and inadequate disease sanitation, etc., found to explain small holders FFBs yield gaps in oil palm plantation in India.
The huge FFB yield gap -potential FFB yield @ >20 tonnes per hectare (ha.) per year on maturity vs present reality on an average across India is less than 9 tonnes/ha/year, mainly because of poor agronomical practices and management adopted, not climate. Low yield means higher fixed costs are spread over fewer tons, raising production costs of crude palm oil.
The current model focuses more on subsidised planting area than effective, productive and sustainable plantation across various states in India (except one or two states). Under NMEO-OP ( 2021- 26), India targets one million ha expansion. India made an ambitious target to expand the oil palm cultivation area from 3.5 lakh ha in 2019-20 to 10 lakh ha by 2025-26, an additional 6.5 lakh ha. The achievement is expected to be around 50 per cent of the overall area goal for the entire mission period. More importantly, the progress is poor towards survival rates, FFB yield, etc.
government of India sets a target annually. State implementation cell converts the National target into state plans, and private companies are the implementing agencies. Recently, it is found that one State Department of Horticulture made attempt to penalise its ground level staff / officers (at block / district level) for not distributing seedlings to farmers / not bringing area based on target given to them monthly basis, where scope is limited due to non-availability of assured water sources in the area. This kind of decision/ action would weaken the ultimate object. Operation In charge of the concerned company in the district has expressed dissatisfaction to the District Horticultural Officer in this process, since farmers do not have required resources to grow oil palm there. It is no good to make records on paper, simply by pushing / distributing seedlings to farmers in the area where oil palm (OP)should not be grown.
Multi alignment strategy and recalibration
First and foremost, goal is to bring effective area under cultivation of OP, while protecting livelihoods, ecosystems and ensuring market linkages. Align subsidy schemes / incentives provided under NMEO-OP, so that all major stake holders, i.e. , the Union Ministry of Agriculture, States and Companies share costs, risks and benefits. In order to achieve meaningful results, following Strategies and recalibration may be initiated:
The Government should set up a National Steering Board to monitor the set standard fixed for the programme.
State should ensure Cluster planning, Land and water mapping, farmer outreach etc.
Private companies should adhere to supply of quality plant material, extension job, technical support to farmers, offtake, procurement and processing of FFBs in the mill established in the operating zone.
Recalibration
Statea should do mapping in advance for certain areas where assured water sources are not available for irrigating the crop across the year sufficiently and term those villages / blocks as red spot for oil palm. Avoid those blocks/villages for oil palm. Training and capacity building for officials at all levels of the state implementing cell (top to bottom) is essential, otherwise the scheme risks poor execution, farmer dissatisfaction. With the structured training at all levels, the NMEO-OP expansion plan becomes feasible and impactful.
Farm level monitoring of planting, survival, FFB yield etc. should be carried out by each company in association with State through Digital Dash Board.
The Centre should recalibrate NMEO-OP for the support (from 2nd year to 4th year, other than 1st year subsidy) to effective, productive, sustainable hectares, not just planted area. Adopt a “Plantation-to-Yield” recalibration of NMEO-OP with joint accountability of states and industry for farmer success. Success should be based on KPIs, like a survival rate more than 85 per cent, more than 75 per cent of new area planted in certified clusters, average FFB yield 20 tonnes per hectare. by the eighth year onwards.
The multi-alignment strategy and recalibration jointly by the Centre, States and industry will ensure planted oil palm area into sustained yields, farmer income and reduced import dependence, while safeguarding the environment and market access.
The author is former CEO – Oil Palm Plantation, Godrej Agrovet Ltd & Consultant- Palm Oil Production and Plantation Development. Views are personal.
Published on September 14, 2025
