Policy to shift farmers from cereals to pulses, oilseeds depends on crop planning adoption

The Economic Survey has suggested policy reforms to discourage overproduction of cereals and boost output of pulses and edible oils, for which the country depends on imports. However, experts said that it is too early to make such a policy shift, particularly when cereals have a major share in India’s food export basket and the government keeps intervening whenever domestic prices rise.

In FY24, the value of agri-food exports (under APEDA) reached $45.44 billion, in which the share of cereals was nearly 23 per cent at $10.41 billion. Though the shipments of processed foods in APEDA’s agri-export basket has improved in the last 10 years, it may not be the driving force for at least the next few years, said a foreign trade policy expert. The share of cereals, in fact, dropped due to export ban on wheat and non-Basmati rice in 2023-24, the expert added.

The Survey said: “While various initiatives have helped India’s agriculture and allied services to grow under challenging circumstances, the good news is that there is still significant untapped growth potential. The right set of policies across all levels of government can reduce the overproduction of cereals and address the underproduction of pulses and edible oil.”

But a former agriculture secretary said that given the importance of cereals in food security, no government can take a risk on at least wheat and rice, unless there is a crop planning followed seriously by linking all the government schemes, including procurement, with what farmers are “desired (by government) to grow.”

The Survey mentioned that the government is implementing a range of initiatives aimed at enhancing agricultural productivity and increasing farmers’ incomes, in alignment with the recommendations put forth in the Doubling Farmers’ Income (DFI) Report 2016.

Policy shift impact

businessline spoke to the panel’s chairman Ashok Dalwai on the implications of the suggestion for shifting. “We should stop calling it food security and it should be nutritional security. What is needed are policy interventions aimed at ensuring higher production and availability of pulses, oilseeds and horticulture produce at cheaper rates, vis a vis cereals. It will automatically lead to more consumption and provide nutritional security,” said Dalwai.

The Survey pointed out that India faces a persistent deficit in the production of pulses and oilseeds, and the slower growth rate of oilseeds at 1.9 per cent raises concerns, especially considering the country’s heavy reliance on imports to satisfy domestic edible oil demands. Promotion of extension activities and training for farmers on the best practices, use of high-yield and disease-resistant seed varieties, and targeted interventions to improve agricultural practices in the major growing regions for pulses and oilseeds are some of its suggestions.

The Survey also said that widespread adoption of digital technologies in agriculture will unlock more possibilities for enhancing productivity.

Improving price discovery and market efficiency are critical aspects that necessitate attention, it said, suggesting that strengthening market infrastructure is essential to facilitate this improvement. “This can be achieved by effectively utilising the e-NAM, a platform for farmers to access broader markets. Furthermore, supporting the establishment and operational capabilities of farmer producer organisations (FPOs) and enabling cooperatives to play a more active and influential role in agricultural markets is paramount to fostering an inclusive market environment.”