Guwahati: In a significant development, the central government has approved the inclusion of Assam’s tea estates in the National Mission on Edible Oils – Oil Palm (NMEO-OP). This decision, communicated through a letter dated April 1, 2025, from the Ministry of Agriculture and Farmers Welfare, enables tea gardens in Assam to utilise up to 5% of their land for oil palm cultivation.
The North Eastern Tea Association (NETA) had been advocating for this inclusion, citing land classification issues that previously prevented Assam’s tea estates from benefiting from the scheme. The association’s efforts have been successful, with the central government agreeing to extend the scheme’s benefits to eligible tea estates.
The NMEO-OP initiative aims to boost domestic oil palm production and reduce India’s reliance on imports. Tea estate owners in Assam view this development as an opportunity to diversify their operations, given the significant capital investment required for oil palm cultivation. Bidyananda Barkakoty, adviser to NETA, noted that the support provided under the oil palm mission will help tea estates overcome the crisis facing the plantation industry.
The assistance offered under the NMEO-OP includes funding for planting materials, maintenance for up to four years, intercropping inputs, land clearance, bio-fencing, irrigation support, and other agricultural infrastructure. A special package is also available for northeastern states. An in-house study conducted by NETA found that tea and oil palm can coexist without disrupting traditional tea cultivation.
The Assam government has taken steps to facilitate diversification, allowing tea estates to use 5% of their land for specific purposes, including cash crops, in October 2022. The state cabinet further classified oil palm as a cash crop in January 2025, paving the way for this inclusion in the central scheme.
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