National Mission on Edible Oil- Oil Palm Business Summit

National Mission on Edible Oil- Oil Palm: Relevance for UPSC Exam

• GS Paper 3: Indian Agriculture- Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.

National Mission on Edible Oil- Oil Palm: Context

• Recently, the National Mission on Edible Oil- Oil Palm Business Summit for states other than the North Eastern States was inaugurated in Hyderabad by the Union Minister of Agriculture.

National Mission on Edible Oil- Oil Palm Business Summit: Key Points

• About: National Mission on Edible Oil- Oil Palm Business Summit is being organized by the government across the country.
  • This is the second such summit of the Mission, the first was held in Guwahati for North Eastern states in early October this year.
• Aim: National Mission on Edible Oil- Oil Palm Business Summit aims to give widespread information on the newly launched centrally sponsored scheme on edible oils.

National Mission on Edible Oils – Oil Palm

Oil Palm Cultivation in India

• Currently, about 3 lakh hectares of land in India is under palm oil cultivation while studies have shown that about 28 lakh hectares of land are suitable for oil palm cultivation in the country.
• The government through various missions aims to bring 28-lakh hectares of land under cultivation to make India Aatmanirbhar in edible oil.

National Mission on Edible Oil- Oil Palm Scheme: Key Points

• The National Mission on Edible Oil- Oil Palm scheme has a special focus on the Northeast region and the Andaman and Nicobar.
• Under the National Mission on Edible Oil- Oil Palm scheme, it is proposed to cover an additional area of 5 lakh hectares (ha.) for oil palm till the year 2025-26 and thereby reaching the target of 10 lakh hectares.
• The production of Crude Palm Oil (CPO) is expected to go up to 20 lakh tonnes by 2025-26 and up to 28 lakh tonnes by 2029-30.
• The National Mission on Edible Oil- Oil Palm scheme has been proposed to increase the area and production of CPO in the country.
• National Mission on Edible Oil- Oil Palm scheme will subsume the National Food Security Mission-Oil Palm program.

National Mission on Edible Oil- Oil Palm Scheme: Funding and Pricing Mechanism

• Viability Price: The centre will give a price assurance to oil palm farmers to protect them from the fluctuations of the international market. This will be known as the viability price.
  • It shall be the annual average price of the last 5 years adjusted with the wholesale price index to be multiplied by 14.3 percent.
• Formula Price: A formula price will also be fixed which will be 3 percent of crude palm oil price and will be fixed on a monthly basis.
• Viability gap funding: The viability gap funding will be the difference between the viability price and formula price and if the need arises, it would be paid directly to the farmers.

Also Read:

Sharing is caring!