India’s First Oil Palm Processing Unit by 3F Oil Palm

First Oil Palm Processing Unit: In Arunachal Pradesh, India sets up its first facility for processing oil palm. With the goal of producing 11.20 lakh tons of palm oil by 2025–2026, the National Mission for Edible Oils – Palm Oil was established in August 2021. This accomplishment comes after that launch. This project is a major step towards self-sufficiency, as India currently imports 57% of its edible oil needs. India’s imports of palm oil showed a noteworthy 36% reduction in February, the lowest since May 2023, despite global palm oil prices reaching a one-year high. This indicates progress towards indigenous production and less reliance on imports. Catch Commodities Corner with Asia Palm Oil Alliance Chairman Atul Chaturvedi and Manisha Gupta.

About the First 3F Oil Palm Processing Unit

In the northern state of India, in the Lower Dibang Valley district, a new factory has opened. The first oil palm factory in India under NMEO-OP is this one, which is a component of Mission Palm Oil. The factory consists of:

• A modern oil palm plantation.
• A power plant powered by palm trash.
• An effluent plant with zero discharge.
• Extra frameworks for reasons of support.
• During his visit to Itanagar on March 9, Indian Prime Minister Narendra Modi essentially opened the state’s 3F oil palm processing complex.
• The goal of the government’s Mission Palm Oil initiative, which is concentrated in the Northeast, is to enable farmers to increase their income and attain edible oil self-sufficiency. The need for edible oils is growing, and palm oil is now crucial to maintaining the food security of the country.
• The first oil palm processing facility in the nation opened for business in line with efforts to promote indigenous oil seed production.
• The Northeast has vast potential for producing palm oil, and by 2030, the government intends to invest 1100 crores in Assam and Arunachal Pradesh, generating 1,700 employment.
• Arunachal Pradesh has 1,30,000 hectares of land that can be used to grow oil palm; of this total, the Northeast alone accounts for 33% of the government-designated cultivable area.

About First Oil Palm Processing Unit: National Government’s Mission for Edible Oils (NMEO-OP)

• In August 2021, the National Mission for Edible Oils – Oil Palm (NMEO-OP) was initiated by the Indian government.
• By 2025–2026, the mission hopes to raise the production of crude palm oil to 11.20 lakh tons and enhance the cultivation of oil palm. This program spans a potential area of 21.75 lakh hectares and is implemented in 15 states across the country.

• As part of the objective, 111 nurseries with a combined capacity of one crore and twelve seed gardens with a potential of two crore planting materials have been built thus far.
• The purpose is to guarantee buyback from private actors, supply farmers with planting material, and promote oil palm in new locations.
• Farmers are being shielded from the volatility of oil palm prices worldwide by the government through the viability gap payment (VGP), which serves as a risk hedge. The oil palm viability price was revised by the government from Rs. 10,516 in October 2022 to Rs. 13,652 in November 2023.
• In addition to the VGP benefit, NMEO-OP provides farmers with specific support for planting materials and management at a rate of Rs. 70,000 per hectare. Additionally, the mission gives farmers Rs. 2,90,000 for harvesting instruments so they may grow palm oil, as well as Rs. 25 lakhs for help setting up custom hiring centers (CHC).

In Andhra Pradesh, Karnataka, Chhattisgarh, Assam, and Arunachal Pradesh, 3F Oil Palm has made a major difference. Right now, the organization is focused on developing a strong expansion plan for the Northeast, which includes Assam and Arunachal Pradesh.

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