India's Oil Palm Mission: Why Success Must Be Measured in Yield and Income, Not Just Hectares
A recent analysis argues that the National Mission on Edible Oils – Oil Palm (NMEO-OP) should be judged not only by how much new land comes under oil palm, but by whether these plantations become productive, profitable and long-lasting.
The mission, approved in August 2021, aimed to bring an extra 6.5 lakh hectares under oil palm by 2025-26. About 2.73 lakh hectares were added from 2021-22 to 2025-26, taking the total area to about 6.40 lakh hectares as on 31 March 2026.
Crude palm oil (CPO) output rose from about 1.91 lakh tonnes in 2014-15 to about 3.80 lakh tonnes in 2024-25. This is still far below the mission's target of 11.20 lakh tonnes by 2025-26.
India still imports most of its edible oil. Industry estimates for the 2025-26 oil year put domestic output at about 9.6 million tonnes against imports of about 16.7 million tonnes. Palm oil, mainly from Indonesia and Malaysia, is the largest single imported oil.
The analysis stresses that oil palm takes years to bear fruit. So the real test is plant survival, yields per hectare, nearby processing mills and steady prices for farmers.
National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)
India's edible oil missions are central schemes to grow more cooking oil at home and cut dependence on imports. There are two parts. The NMEO-Oil Palm (NMEO-OP), approved in August 2021, focuses only on oil palm. The NMEO-Oilseeds, approved on 3 October 2024, covers the main annual oilseed crops like mustard, groundnut and soybean. Together they aim to make India far more self-reliant in edible oils by 2030-31.
The NMEO-OP reached most of its area goal on paper, but oil output is only about a third of its 2025-26 target. That gap is exactly why the analysis argues that the mission's next phase should track yields, mill capacity and farmer income, not just hectares planted.
Oil Palm Cultivation in India
The oil palm is a tall tropical tree whose fruit gives palm oil, the world's most widely used cooking oil. It gives far more oil per hectare than any other oil crop: a good plantation can yield about 4 to 5 tonnes of oil per hectare per year, many times more than mustard or soybean. But it is a long-term crop that needs plenty of water and takes several years to start giving fruit, so it suits only some regions and some farmers.
The analysis is a reminder that oil palm is not like an annual crop that can be counted in one season. Land planted today will show its real worth only when the trees start bearing fruit and farmers can sell bunches at fair prices to nearby mills, which is why it calls for measuring what the plantations sustain.
- NMEO-OP approved: 18 August 2021; outlay ₹11,040 crore (Centre ₹8,844 crore, states ₹2,196 crore)
- NMEO-OP targets: +6.5 lakh hectares by 2025-26; CPO 11.20 lakh tonnes by 2025-26 and 28 lakh tonnes by 2029-30
- Area under oil palm: about 6.40 lakh hectares as on 31 March 2026 (about 2.73 lakh hectares added since 2021-22)
- CPO output: 1.91 lakh tonnes (2014-15) to 3.80 lakh tonnes (2024-25)
- NMEO-Oilseeds approved: 3 October 2024; outlay ₹10,103 crore; 2024-25 to 2030-31
- Edible oil in 2025-26 (industry estimates): domestic output about 9.6 million tonnes, imports about 16.7 million tonnes
- Main palm oil suppliers to India: Indonesia and Malaysia
- Oil palm oil yield: about 4 to 5 tonnes per hectare per year