Syllabus: Issues related to farm subsidies and MSP; Public Distribution System — objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
Context
- Recent issues in Tamil Nadu’s kuruvai paddy procurement highlight deeper flaws in the national foodgrain procurement system.
- TNCSC, procuring for FCI, faced delays and corruption allegations despite advance knowledge of expanded cultivation.
Rising Paddy Procurement and Excess Stocks
- Nationwide paddy (rice) procurement reached 119.86 lakh tonnes by October 31, 2025, compared to 82.08 lakh tonnes last year.
- For three consecutive years, rice and wheat stocks on October 1 exceeded prescribed norms.
- Rice stocks were 356.1 lakh tonnes in October 2025 against a norm of 102.5 lakh tonnes.
- Annual rice procurement between April 2022–March 2025 stayed around 525–547 lakh tonnes, while PDS offtake was 392–427 lakh tonnes.
- Wheat utilisation under PDS exceeded procurement in two of the last three years.
- The Union government spends nearly ₹2 lakh crore yearly on food subsidy.
Contrasting Shortages: Pulses and Oilseeds
- India still imports large quantities of pulses and edible oil, despite high domestic demand.
- Pulses production reached 252.4 lakh tonnes in 2024–25, yet MSP procurement declined sharply after 2023–24.
- In 2023–24, edible oil imports cost ₹1.2 lakh crore, and pulses imports cost ₹30,000 crore.
- Around 55% of edible oil demand is met through imports, with war-induced price spikes affecting costs.
- Oilseed production crossed 400 lakh tonnes only once since 2014, despite stable cultivation area.
Systemic Concerns
- Surplus rice questions the sustainability of current procurement policies and cereal-focused cropping.
- Low diversification reflects farmers’ fear of uncertain markets without assured support.
- The PDS system suffers from leakages, with studies indicating 28% losses during distribution.
Way Forward
- Promote crop diversification through region-specific market studies, financial incentives and technical guidance.
- Encourage direct linkages between farmers and buyers, supported by FPOs, SHGs and cooperatives.
- Expand FPO roles in procurement, soil health awareness, market preparation and supply-chain development.
- Strengthen capacity building for new stakeholders and gradually reform the procurement architecture.
- Collaborative efforts involving experts, farmers, planners and food security institutions are essential for systemic correction.