Assam Tea Gardens Get Green Signal for Oil Palm Cultivation under NMEO-OP, Boosting Growth and Prosperity

Assam’s Tea Estates to Get a Boost with Oil Palm Cultivation

In a significant decision, the Ministry of Agriculture & Farmers Welfare, Government of India, has approved the extension of the National Mission on Edible Oils – Oil Palm (NMEO-OP) benefits to tea gardens in Assam. This move is a direct result of an appeal by the North Eastern Tea Association (NETA), which had been highlighting the potential of diversifying tea estates with oil palm cultivation.

The decision, announced in a letter dated April 1, 2025, allows tea gardens in Assam to cultivate oil palm trees on up to five percent of their land, offering them financial assistance for planting material, maintenance during the gestation period, and other inputs. This is a significant development, especially considering the economic benefits of oil palm cultivation. According to NETA, oil palm cultivation demands substantial investment, making it challenging for tea estates to adapt initially.

NETA’s efforts have been instrumental in achieving this breakthrough. In their appeal, the association had recognized the challenges faced by tea estates in availing the NMEO-OP scheme due to land classification issues and other conditions outlined in the operational guidelines. The association’s formal request led to a positive response from the Central government, advising the Assam government to facilitate the inclusion of tea estates in the scheme.

The Assam government has already taken steps to enable diversification by issuing a Gazette Notification on October 14, 2022, allowing up to five percent of total tea garden land to be used for cash crops. The state cabinet, in its meeting on January 10, 2025, further recognized oil palm as a cash crop. West Bengal has also followed suit, issuing a Gazette Notification on February 11, 2025, permitting up to 15 percent of tea garden land for specific purposes.

NETA’s research indicates that tea and oil palm cultivation can coexist without disrupting the existing tea production. In fact, diversifying tea gardens by integrating agarwood, oil palm, and other cash crops on a small portion of the land could provide economic relief to the tea industry. As a result, eligible tea estates in Assam will now receive financial assistance covering planting material, maintenance, and other inputs under the NMEO-OP scheme.

This move is part of India’s broader strategy to boost domestic oil production and reduce reliance on imports. As the country is the world’s largest importer of edible oils, the National Mission on Edible Oils – Oil Palm aims to expand oil palm cultivation and support local farmers. By supporting oil palm cultivation in tea gardens, the government is opening up new economic opportunities for tea estate owners, promoting agricultural diversification and mitigating the challenges faced by the tea industry.

As the state government has already paved the way for diversification, tea estates in Assam are now ready to make the most of this opportunity. With the NMEO-OP benefits extended, Assam’s tea industry is poised to benefit from the economic and environmental benefits of oil palm cultivation.

Original Source: https://nenews.in/assam/centre-approves-oil-palm-cultivation-in-assam-tea-gardens-under-nmeo-op/22890/
Category : Assam,Business,Assam tea gardens,Centre,NETA,NMEO-OP,oil palm
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Publish Date: 2025-04-03 16:05:00