Why is News :
- India has witnessed record imports of pulses (7.3 million tonnes) and soaring edible oil imports (16.4 million tonnes) in 2024–25, signalling a policy failure in supporting domestic production and MSP procurement.
- Duty cuts to tame retail inflation have further harmed farmers’ returns, jeopardizing India’s agricultural self-reliance goals.
Key Data Points
Pulses
- Record imports in 2024–25: 7.3 mt worth $5.5 billion (previous record: 6.6 mt in 2016–17).
- Self-sufficiency rollback: Production fell from 27.3 mt in 2021–22 to 24.2 mt in 2023–24 due to El Niño-induced drought.
- Price crash: CPI pulses inflation fell from +3.8% (Dec 2024) to -8.2% (May 2025) due to duty cuts and import surge.
- Farmers’ issue: Lack of MSP procurement in pulses (unlike rice/wheat) has exposed farmers to market volatility.
Vegetable Oils
- Import dependence: 16.4 mt in 2024–25 (from 7.9 mt in 2013–14), valued at $20.8 billion.
- Break-up of 2024–25 imports:
- Palm oil: 7.9 mt
- Soybean oil: 4.8 mt
- Sunflower oil: 3.5 mt
- Tariff cuts: Basic customs duty reduced to 10% (total import duty now 16.5%).
- Domestic stagnation: Indian vegetable oil production stuck around 10 mt, with import dependency exceeding 60%.
Core Issues
MSP Procurement Disparity:
- Rice and wheat enjoy consistent procurement; pulses/oilseeds lack institutional support.
- Many farmers are forced to sell below MSP in open markets, eroding incomes.
Policy-Induced Market Volatility:
- Import duty cuts to curb inflation benefit consumers short-term, but hurt farmers long-term by crashing market prices.
Crop Insecurity in Rainfed Areas:
- Black cotton soils support pulses and oilseeds, yet farmers have limited cropping alternatives and policy cushion.
Structural Dependence on Imports:
- Lack of investment in oilseed value chains, R&D, and processing infrastructure has led to persistent foreign dependency.
Consequences
- Farmer distress: Pulses and soyabean farmers disincentivized to cultivate in kharif season
- Strategic vulnerability: Over-reliance on food imports undermines food sovereignty.
- Balance of payments pressure: High-value imports of oils and pulses strain foreign exchange reserves
- MSP credibility crisis: If government promises are not backed by procurement, MSP becomes notional.
Reform Measures & Suggestions
Expand MSP Procurement to Pulses & Oilseeds:
- Use mechanisms like Price Support Scheme (PSS) to actively procure at MSP.
Incentivize Crop Diversification:
- Push pulses and oilseeds in place of water-intensive crops in regions like Punjab and Haryana.
Build Storage & Processing Infrastructure:
- Develop decentralized procurement and storage for perishable, region-specific pulses and oilseeds.
R&D in Climate-Resilient Varieties:
- Scale up drought-tolerant, short-duration seeds like high-yield moong and chana.
Tariff Stability for Domestic Planning:
- Avoid sudden duty cuts; instead use buffer stocks and targeted subsidies to control retail prices.
Edible Oil Mission Expansion:
- Strengthen National Mission on Edible Oils – Oil Palm (NMEO-OP) and diversify to mustard, safflower, sunflower.
Price Deficiency Payment Scheme (PDPS):
- Expand it to cover more pulses and oilseeds to ensure income support when prices fall below MSP.
| GS3 Mains Answer Framing Points Q. Critically examine the impact of India’s import policy on pulses and edible oils in the context of farmer welfare and inflation control. What measures are needed to address this dual challenge? Use data points: Import volumes, duty cuts, inflation figures.Bring in linkages with MSP policy, agri distress, and global dependency.Suggest a balanced food policy framework: income protection + price stability. |