To revitalize Assam’s struggling tea industry, the Union Ministry of Agriculture and Farmers Welfare has agreed to extend the National Mission on Edible Oils – Oil Palm (NMEO-OP) scheme to tea estates in the state. The decision follows persistent efforts by the North Eastern Tea Association (NETA), which had urged the government to address land classification barriers preventing tea gardens from availing the scheme.
The Ministry, in a letter to Assam’s Director of Agriculture dated April 1, confirmed that tea estates will now be eligible to cultivate oil palm trees on up to five percent of their land under the centrally sponsored NMEO-OP scheme. This move opens the door for financial assistance for oil palm planting, irrigation, and maintenance — particularly crucial during the initial four-year non-harvesting period.
NETA adviser Bidyananda Barkakoty said the inclusion of tea estates under the NMEO-OP scheme marks a win for planters facing severe economic challenges. “We had highlighted that tea gardens couldn’t previously access the scheme due to restrictive land use classifications,” he noted, adding that the new directive will help tea estates diversify their income sources.
A study conducted by NETA indicated that oil palm, agarwood, and other cash crops can be cultivated harmoniously alongside tea, utilizing the permitted five percent land allocation. The study suggested that such diversification is essential to help tea planters cope with mounting economic pressures, including rising input costs and stagnant auction prices.
The move is backed by a Gazette notification issued by the Assam government on October 14, 2022, which allows the use of up to five percent of tea garden land for non-tea crops, including cash crops like oil palm.
The NMEO-OP scheme, launched in 2022 and set to run till 2025-26, aims to boost domestic edible oil production by encouraging oil palm cultivation in suitable regions. With Assam now officially included, the scheme is expected to generate new opportunities for the state’s tea sector and contribute to India’s overall edible oil security.