NATIONAL MISSION ON EDIBLE OILS- OIL PALM (NMEO-OP)

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Background: 

Edible oil crisis in India 

  • On an average, the annual demand in India is 24 million tonnes of edible oils 
  • While production of oils like palm oils, mustard oils, soybean oils, groundnut oils and sunflower oils are in India is only 8 to 11 million tonnes annually.
  • India imports 13.35 million tonnes ( 133.50 lakh tonnes) oils costing 80 thousands crores.
  • To meet this demand Government of India imports 60% of its oil demand from foreign countries. It means India's edible oils dependency is more than how much it produce.
  • To reduce this dependency  government planning to distribute free of cost soybean and palm oils seeds for boosting oil seeds production.
  • Whenever prices of oils in international market increases the oil prices goes high immediately in India and leads to inflation.
  • Now India looking for green revolution for oils prodution.
  • India is the world's biggest cooking oil importer over the past two decades because: 
    • population has increased 
    • Restaurant increased 
    • Life style increased 
    • Eating habits changed 
  • Palm oil imports contribution is 2/3rd of its total oils import from Indonesia and Malaysia major palm oil profucer of the world.
  • Soft oils like soybean oils are being imported from Brazil and Argentina to meet demand. 
National Mission on edible Oils - oil palm 

Government of India launched a  centrally sponsored scheme, mission on edible oils known as national mission on edible oils- oil palm on 15 August 2021  from the red fort of India with a vision to make India self reliance in edible oils. For this government has allocated ₹11040 Crores. Central shares will be 8844 crore and 2,196 crore of states shares.

Vision: to make India self reliant in edible oil production 

Aim: 
  • The scheme seeks to bring additional 0.65Million hectares land under palm oil by 2025-26 to reach the target of one million hectares,  up from 0.37 million hectares at present. 
  • This would result in an increase in crude palm oil output to 1.1 million tonne by 2025-26, and 2.8 million tonnes by 2029-30.
  • To cut the import dependecy on edible oils. 
  • To cut import bill.

Purposes:
  • The programme seeks to promote Plantation in the northeast regions, besides the Andaman and Nicobar Islands. 
  • Viability gap funding : to shield the growers from international price volatility by paying to farmers' accounts in the form of direct benefit transfer. This price assurance is known as "viability price". This viability price will be the annual average of crude palm oil (CPO) of the last 5year adjusted with whole sale price index to be multiplied by 14.3%. This will be fixed yearly for the oil palm year. 
  • To save the imports duty applied by government because international prices of oils palm has increased and government being forced to reduce imports duty to make oil affordable.
  • To cut India' growing reliance on import of edible oils because India edible oil imports is the 3rd most high value imports,  after petroleum crude and gold.
Characteristics of palm :
  • Palm is the cheapest edible oil used in most food items, from breads to pizzas. 
  • Palm required thrice water as compare to coconut that make it water intensive leads ground water extraction. 
  • Palm oil, a perennial crop, yields more oil per acre than coconut. 
  • It required 5 to 7 years to become full grown tree from plant to give yield and profits.
  • Palm oil plants require tropical climate and peaty soils that India has.
  • Palm oil has healthy unsaturated fats and vitamins.
  • Humid and rainy Andaman is a good place to grow palm. 
Challenges regarding palm oils prodution:
  • As it required large amount of water it leads to ground water extraction causing ground water table depletion. 
  • As it must be planted in rainfed forests areas that are ecosensitive zone, consequently, will lead to monoculture in forests of North East Region and Andaman and Nicobar Islands. 
  • It will replace natural tropical forest, depleting biodiversity by decimating swathes of pristine forests, wiping out wildlife, from orangutans to birds.
  • India could face disasters.
Pros and cons:
  • India's palm oils prodution will increase 
  • Monocropping will lead to biodiversity loss
  • India's foreign reserves will be saved 
  • Loss of wild life habitation and ground water level depletion rapidly increasing. 
  • Rules would be broken down: 
    • Rainforest should be absolutely no gone zone 
    • Do field cultivation and soil management 
    • Avoid weedicide
    • Don't allow monocropping
    • Grow other crops within Plantation.
  • Ecological balance will destroy. 
  • Human entrance will fear  the animals and will make them go out.
What  needs to be done by India ?
 
India should follow the Sustainable agriculture approach for palm oil Plantations too.



Note- 
  1. Sumatra, borneo, Malay peninsula- produces 90% of global palm oil. 
  2. Centrally sponsored scheme: it means Central government and state governments both will contribute financially at a fixed ratio that may be 60:40, 80: 20 etc.  In which Central share will be maximum. 

Reference 

https://agri-geography.blogspot.com/2021/05/seeds.html

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