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India’s First Oil Palm Processing Unit Started Operation in Arunachal

Utkarsh Classes 18-03-2024
India’s First Oil Palm Processing Unit Started Operation in Arunachal Place in News 5 min read

India's first integrated oil palm processing unit in Arunachal Pradesh started operation by one of India's largest oil palm development companies, 3F Oil Palm.

About First Oil Palm Processing Unit 

A new factory has been established in the Lower Dibang Valley district of India's northeast state. This factory is part of Mission Palm Oil and is India's first oil palm factory under NMEO-OP. The factory includes:

  • A state-of-the-art oil palm factory.
  • A palm waste-based power plant.
  • A zero-discharge effluent plant.
  • Additional structures for support purposes.
  • The Prime Minister of India, Narendra Modi, virtually inaugurated the state's 3F oil palm processing unit during his visit to Itanagar on March 9th. 
  • The government's focus on Mission Palm Oil, with a special focus on the Northeast, aims to achieve self-reliance in edible oils and empower farmers to boost their income. The demand for edible oils is increasing and palm oil has become essential in ensuring the nation's food security. 
  • The commencement of operations of the country's first oil palm processing unit aligns with encouraging domestic oil seed production. 
  • The Northeast region has enormous potential for palm oil production, and the government plans to invest 1100 crores in Assam and Arunachal Pradesh by 2030, creating jobs for 1,700 people. 
  • 1,30,000 hectares of land suitable for oil palm cultivation in Arunachal Pradesh have been identified, with the Northeast region alone having 33 percent of the government-designated area fit for cultivation.

About National Mission for Edible Oils - Oil Palm (NMEO-OP)

  • The Indian government launched the National Mission for Edible Oils - Oil Palm (NMEO-OP) in August 2021. 
  • The mission has aimed to increase oil palm cultivation and boost crude palm oil production to 11.20 lakh tonnes by 2025-26. This scheme operates in 15 states nationwide and covers a potential area of 21.75 lakh hectares. 
  • Till now, 111 nurseries with a capacity of 1 crore planting material have been established, along with 12 seed gardens with the potential of 1.2 crore planting material for area expansion under the mission.
  • The mission aims to promote oil palm in new areas, provide farmers with planting material, and assure buyback from private players. To protect farmers from global price volatility in oil palm, the government is providing viability gap payment (VGP) to hedge farmers' risk. The government has revised the viability price of oil palm from Rs. 10,516 in October 2022 to Rs. 13,652 in November 2023.
  • Besides the VGP benefit, NMEO-OP offers farmers special assistance of Rs. 70,000 per hectare for planting material and management. The mission also provides Rs. 2,90,000 for harvesting tools to farmers for palm oil cultivation and assistance of Rs. 25 lakhs for establishing custom hiring centres (CHC).

Under the mission, processing companies are also setting up one-stop centers for oil palm farmers. These centers provide:

  • Inputs.
  • Custom hiring services.
  • Farm advisories of good agricultural practices.
  • Collection of farmers' produce.

The NMEO-OP is a testament to India's dedication to achieving self-sufficiency in the crucial edible oils sector. This visionary initiative reflects the government's commitment to:

  • boost economic growth, 
  • empower farmers and 
  • create a sustainable and self-sustaining ecosystem for edible oil production in India.


Answer: Arunachal Pradesh

Answer: National Mission for Edible Oils - Oil Palm (NMEO-OP)

Answer: 2021
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