Procurement of oilseeds and pulses lagging behind cereals

Hindustan Times

2 days ago

Recent efforts by the Centre to ramp up output of pulses and oilseeds, which the country imports heavily, such as procurement at minimum support prices (MSP) have been inconsistent, as the key beneficiaries of MSPs continue to be water-guzzling cereals such as rice and wheat, latest Reserve Bank of India (RBI) figures show.
While procurement of pulses and oilseeds by the government has increased by several times, it is still far lower than that of wheat and rice. India grows plentiful cereals, but not enough pulses and oilseeds, the imports of which are a key factor that stokes inflation and also causes a drain of precious foreign exchange for regular imports
The Modi government has adopted a two-pronged strategy to encourage farmers to grow more lentils and oilseeds. While the government has consistently announced higher MSPs for pulses and oilseeds as an incentive for farmers, compared to cereals, the Union cooperation as well as the food ministries have been pressing state-backed cooperatives to procure these items from farmers.
Procurement, the cornerstone of India's food policy, refers to the government's purchase of food commodities at MSPs, which are federally fixed floor rates aimed at offering a minimum of 50% returns over cost of cultivation.
Yet figures show that procurement of cereals far outstrips pulses or oilseeds. According to the latest official data, the Centre procured 77.86 million tonnes of cereals (52.26 million tonnes of rice and 26.26 million tonnes of wheat) during the 2024-25 agricultural crop year.
Compared to this, the government was able to procure only 4.6 million tonnes of pulses and 0.6 million tonnes of oilseeds. During the winter-sown, or rabi, season of 2024-25, state agencies procured 0.43 million tonnes of pulses, especially gram, according to the recently released Reserve Bank of India annual report.
To be sure, procurement of cereals is higher because foodgrains tend to have a far larger marketable surplus (total output minus total consumption of growers). Moreover, India also needs to stockpile large quantities of wheat and rice for distribution to nearly 800 million beneficiaries under the National Food Security Act.
Official data show a see-sawing, inconsistent trend in pulses procurement. Figures presented in Rajya Sabha in response to an unstarred question on Dec 6, 2024 showed that in 2019-20, the government procured 2.8 million tonnes of pulses; which in 2020-21 fell to 0.81 million tonnes. In 2021-22, state agencies procured 3.3 million tonnes; in 2022-23, 2.8 million tonnes and in 2023-24, 0.69 million tonnes.
The Union Budget 2025-26 had announced that 100% of a state's production of pigeon pea (tur), black gram (urad) and yellow lentils (masoor) will be procured for the next four years till 2028-29 to achieve self-sufficiency in pulses in the country. Pulses and oilseeds are purchased under the Centre's price support scheme, which falls under an umbrella scheme called the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA).
'The government has signalled a commitment to substantially increase procurement of pulses. But more needs to be done for it to act as a nudge to grow more,' said Abhishek Agrawal of UN Comtrade.