Editorial 2: Not by MSP
Context
Solution to import dependence on vegetable oil does not lie in hiking MSP.
Record Imports — Causes and Trends
- In 2024-25, India imported a record 7.3 million tonnes of pulses and 16.4 million tonnes of vegetable oils, worth $5.5 billion and $17.3 billion respectively.
- The spike in pulses imports can be attributed largely to the El Niño-induced drought of 2023-24, which impacted domestic food production and drove up inflation well into late 2024.
- As a result, pulses imports jumped from an annual average of 2.6 million tonnes (2018-2023) to 4.7 million tonnes in 2023-24 and further to 7.3 million tonnes the following year.
- However, assuming normal monsoon conditions, pulses imports are likely to fall again in 2025-26.
- Vegetable oil imports, on the other hand, have grown consistently and now exhibit structural dependence. From 7.9 million tonnes in 2013-14, imports have more than doubled, reflecting both rising domestic demand and stagnation in oilseed productivity.
- Unlike pulses, where production has improved significantly over the years, oilseeds have seen little advancement in yield or area.
Success in Pulses, Lag in Oilseeds
- India’s relative success in pulses production stems from the development of improved crop varieties.
- Scientists have introduced short-duration chana (chickpea) and photo-thermo insensitive moong (green gram), allowing farmers to grow these with minimal irrigation and across multiple seasons.
- This innovation helped raise pulses production post-2015-16, making India nearly self-sufficient in normal years, with limited imports mainly of arhar (pigeon pea) and urad (black gram).
- In contrast, oilseed productivity remains low. India’s soyabean yields are just around 1 tonne per hectare, while global leaders like Argentina and Brazil achieve 2.6 to 3.5 tonnes.
- The prohibition on genetically modified (GM) crops like soyabean and mustard has restricted yield improvements. Consequently, India’s vegetable oil import dependence remains above 60% and continues to rise.
- Policy support has also been weaker in oilseeds. While the government announces Minimum Support Prices (MSPs), these are often ineffective without actual procurement.
Suggestions
- Reducing India’s import dependence requires a long-term strategy focused on improving productivity and reducing cultivation costs.
- In oilseeds, this means investing in R&D, allowing GM technology where proven safe, and promoting better agronomic practices.
- Instead of relying on unsustainable MSP hikes, the government should offer targeted income support to pulses and oilseed farmers, giving them assured returns while maintaining market efficiency.
Conclusion
India’s progress in pulses shows what is possible with coordinated policy, research, and extension. Replicating this model in oilseeds is essential to address the growing vegetable oil import bill and strengthen national food security.