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Scheme for Promotion of oil palm in India

This topic provides information about Scheme for Promotion of oil palm in India.

Scope for Oil Palm cultivation

Oil palm crop is one of the highest oil (palm oil) yielding crops among the all perennial crops. Oil palm tree produces edible palm-oil as well as palm kernel-oil. This oil palm is considered as golden palm due to its high yielding capacity. Oil palm produces 4 to 5 tonne s per ha of Crude Palm Oil (CPO) and 0.40 to 0.50 tonne per ha of Palm Kernel Oil (PKO) from 4th to 30th year of its productive life spam.

Oil palm crop provides the excellent substitute of importing the oil. In India, oil palm is being cultivated in 13 states by covering about 3,00,000 hectares by 2016-17 under irrigated conditions. Potential states are Andhra Pradesh, Gujarat,  Karnataka, Tamil Nadu and Bihar.

For details of State - wise potential district covered under oil palm, click here.

Efforts of Government

In view of the importance and significance of oil palm cultivation, Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) had taken up Technology Mission on Oilseeds & Pulses (TMOP) in 1991 - 92 in the potential states. A comprehensive Centrally Sponsored Scheme Oil Palm Development Programme (OPDP ) was taken up during Eighth & Ninth Plan. During the Tenth and Eleventh Plan, Government of India had provided support for oil palm cultivation under Centrally Sponsored Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM). To boost oil palm cultivation, Government of India had implemented a Special Programme on Oil Palm Area Expansion (OPAE) under RKVY from the year 2011-12 to 2014-15. During the 12th Five Year Plan, a new National Mission on Oilseeds and Oil Palm (NMOOP) has been launched under which Mini Mission - II (MM - II) is dedicated to oil palm area expansion and productivity increases. MM - II of NMOOP is being implemented in 12 States viz; Andhra Pradesh, Telangana, Chhattisgarh, Tamil Nadu, Kerala, Gujarat, Karnataka, Odisha, Mizoram, Nagaland, Assam and Arunachal Pradesh w.e.f. 01.04.2014.

Strategies of oil palm

  1. Special focus for promotion of oil palm in all NE states.
  2. To meet the planting materials requirement for new plantation both from indigenous and imported sources.
  3. Support to farmers for planting materials, inter cropping & maintenance cost for gestation period (4 yrs), bore well, drip irrigation, harvesting tools.
  4. Capacity building of farmers and extension officials.
  5. Assured procurement of FFBs through processors.
  6. Supporting oil palm growers through Market Intervention Scheme (MIS) to provide remunerative prices of FFBs as and when international CPO price fall below $ 800 per MT.


Bring additional 75,000 hectare area under oil palm cultivation through area expansion approach in the country during next two years ie. 2017-18 and 2018-19. The total area in the country will be 3.75 lakh ha from which 3.00 lakh tonnes of CPOs is estimated by the end of 2018-19.

Implementing agency

Oilseeds Division, Department of Agriculture, Co-operation and Farmers Welfare will implement the scheme at national level under Mini Mission II of NMOOP . Joint Secretary (Oilseeds) will act as Mission Director of NMOOP. The Principal Secretary (Agriculture/Horticulture) of the respective state will be in charge of the scheme at state level.

Area of operation and funding pattern

Twelve states of Andhra Pradesh, Telangana, Karnataka, Assam, Kerala, Gujarat, Tamil Nadu, Chhattisgarh, Odisha, Mizoram, Nagaland and Arunachal Pradesh will be covered under this scheme.

The funds would be released to the states as per norms of NMOOP. The expenditure will be shared between Central and State Government in the ratio of 90:10 for Assam, Arunachal Pradesh, Nagaland and Mizoram and 60:40 for remaining States.

However, 100% support is being provided to Indian Institute of Oil Palm Research (IIOPR), Pedavegi, Andhra Pradesh for supply of planting materials, need based R&D and extension activities.

Interventions and Assistance

Under the MM-II of NMOOP, financial assistance are being provided to the farmers @ 85% cost of the planting material (Rs. 12000/ - per ha) and @ 50% cost of the other components like maintenance cost of new plantations for four years (Rs. 20000/ - per ha), inputs for inter-cropping in oil palm during gestation period (Rs. 20000/ - per ha) , installation of drip - irrigation systems, diesel/electric pump-sets, bore-well (Rs. 50000/ - per unit), water harvesting structures/ponds, construction of vermi-compost units and purchasing of machinery & tools etc.

For details of pattern of assistance, click here.

Source : National Mission on Oilseeds and Oil Palm (NMOOP)

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