Assam Govt Pushes For Oil Self-Sufficiency With Mustard, Palm Oil Focus

Guwahati: Assam Finance Minister Ajanta Neog made some major announcements for the agricultural sector while presenting the state budget for 2025. According to the new Budget, the government will provide Rs 250 per quintal for paddy and maize while Rs. 500 per quintal for mustard, above the minimum support price (MSP).

During an interaction with Business North East (BNE), Assam Agriculture Minister Atul Bora spoke about the state’s District Mustard Mission and its implementation at the grassroots level. Atul Bora stated that mustard is a widely cultivated crop in Assam, but high moisture content poses significant challenges for farmers.

“Mustard cultivation is prevalent in the state, but due to excessive moisture, farmers face several difficulties. To address this, the government has taken multiple steps to enhance self-sufficiency in oil production. Alongside mustard, we are also focusing on palm oil as Assam is not yet self-reliant in oil production,” stated Bora, who shared that Assam Chief Minister Himanta Biswa Sarma has also invested funds to strengthen the Minimum Support Price (MSP) mechanism for mustard, ensuring better returns for farmers.

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The Assam Budget 2025-26 promises Rs 10 lakh each to 500 better-performing Farmer Producer Organisations (FPOs). “We don’t have many FPOs, probably not even 700. However, NERAMAC, NABARD and a few other organisations are actively working in this sector. Since the number of FPOs is relatively small, selecting 500 of the best-performing ones should not be an issue. Those that have been operational since their inception will likely be prioritised,” said Bora when asked about the selection criteria of beneficiaries.

The government’s initiatives aim to strengthen the agricultural ecosystem in Assam, ensuring that both mustard cultivation and farmer organisations receive the necessary support to boost productivity and profitability.