Core Problem
India over-procures rice & wheat due to MSP bias, but under-produces pulses & oilseeds → cereal surplus + huge import dependency.
Key Data
- Paddy procurement 2025: 119.86 lt (vs 82.08 lt)
- Wheat opening stock: 356.1 lt (norm: 102.5 lt)
- Edible oil imports: 112 lt (2024–25)
- Pulse imports: 30 lt
- Edible oil output stagnant: 13 lt for 6 years
- Import bill (edible oils): ₹82,000 crore
- Oilseed area stagnant for 25 years
Why Distortions Exist
- MSP system favours rice & wheat.
- Farmers avoid pulses/oilseeds due to no assured procurement.
- Weak market + storage + processing systems.
- Cheap imports hurt domestic producers.
- Procurement ignores nutritional needs.
Impacts
- Economic: High subsidy + rising imports
- Agricultural: Monocropping
- Environmental: Paddy → groundwater depletion, methane
- Social: Low diversification traps farmers
Reforms Needed
- Shift procurement & MSP towards pulses/oilseeds.
- Promote diversification & climate-resilient crops.
- Stronger markets, storage, processing, FPO linkages.
- Price deficiency payments; better risk management.
