Guwahati, Apr 3: The central government has approved the inclusion of Assam’s tea estates in the National Mission on Edible Oils – Oil Palm (NMEO-OP), enabling them to benefit from the scheme. This decision follows a request from the North Eastern Tea Association (NETA), which had urged the government to extend the oil palm mission to tea gardens in the state.

In a letter dated April 1, 2025, the Ministry of Agriculture and Farmers Welfare informed the Director of Agriculture Assam that the oil palm scheme will now apply to 5 percent of tea garden land in Assam. The assistance, based on a per-hectare basis, will support the planting of 143 oil palm trees per hectare.

The scheme’s support package includes planting materials, management up to the gestation period, intercropping inputs, land clearance, bio-fencing, irrigation infrastructure, and more. A special package has been introduced for the northeastern states.

NETA had raised concerns that Assam’s tea estates were previously excluded from the scheme due to land classification issues. The oil palm mission is part of a broader effort to reduce India’s reliance on imported palm oil and boost domestic edible oil production.

A study conducted by NETA found that oil palm cultivation could coexist with tea production without disruption. The inclusion of oil palm and other cash crops on 5 percent of the tea garden land is expected to help address economic challenges faced by the tea industry, including rising production costs and stagnant prices.

The Assam government had already approved the use of 5 percent of tea garden land for cash crops in 2022, and oil palm was officially recognized as a cash crop in January 2025.

Assam’s tea industry, producing approximately 700 million kg of tea annually, plays a vital role in India’s tea production but faces challenges due to rising costs and crop quality issues.