Context & The Gist
The imposition of a 30% import duty on yellow peas follows a period of high pulse inflation (June 2023-August 2024) triggered by El Niño and subsequent price cooling due to record imports.
The article argues that this import duty, while seemingly addressing farmer concerns, is a symptomatic fix and fails to tackle the fundamental imbalance in India’s Minimum Support Price (MSP) and import policies, which heavily favor rice and wheat over pulses and oilseeds.
Key Arguments & Nuances
- Skewed MSP Policy: India’s MSP procurement is disproportionately focused on rice and wheat, leading to excessive buffer stocks and high import duties on these grains. Pulses and oilseeds receive largely symbolic MSPs with limited actual procurement, exposing farmers to import competition.
- Timing of the Duty: The duty is imposed during the kharif pulse harvest and rabi pulse sowing seasons, potentially disincentivizing pulse cultivation.
- Price Volatility & Imports: Recent price fluctuations – from double-digit inflation to negative inflation – demonstrate the sensitivity of the pulse market to both climate events (El Niño) and import policies. Record imports in 2024-25 helped cool prices, but now put farmers at a disadvantage.
- Need for Market Alignment: The article advocates for a policy that allows farmers to grow crops based on market demand, rather than being dictated by MSPs.
- Shift from Price to Income Support: The author suggests replacing price support with a minimum income guarantee through direct benefit transfer (DBT) to farmers, ensuring a stable income regardless of crop choice.
UPSC Syllabus Relevance
- GS Paper 2: Government Policies & Agriculture – Issues related to agricultural pricing, procurement, and food security.
- GS Paper 3: Economy – MSP, agricultural marketing, and the impact of trade policies on the agricultural sector.
- GS Paper 3: Economy – Food processing industries and supply chain management.
Prelims Data Bank
- MSP (Minimum Support Price): A price fixed by the Government of India to protect farmers from price fluctuations.
- El Niño: A climate pattern that describes the unusual warming of surface waters in the eastern tropical Pacific Ocean, often leading to droughts in some regions and floods in others.
- Rabi Crops: Winter crops sown in October-November and harvested in March-April (e.g., wheat, chickpea).
- Kharif Crops: Monsoon crops sown in June-July and harvested in September-October (e.g., rice, pulses).
- India’s Pulse Imports (2024-25): 7.3 million tonnes, valued at $5.5 billion.
Mains Critical Analysis
The article highlights a critical policy imbalance within India’s agricultural framework. The overemphasis on rice and wheat, driven by the Green Revolution and subsequent policies, has created a situation where pulses and oilseeds are neglected. This has several implications:
- Food Security Concerns: Reliance on a limited number of crops makes the food system vulnerable to climate change and pest attacks. Diversification through pulse cultivation is crucial for long-term food security.
- Farmer Distress: Farmers growing pulses face market uncertainties and lack the price protection enjoyed by rice and wheat farmers, leading to lower incomes and potential debt.
- Nutritional Deficiencies: Pulses are a vital source of protein, particularly for vegetarian populations. Discouraging pulse cultivation can exacerbate nutritional deficiencies.
The proposed solutions – shifting towards market-aligned MSPs and implementing a direct income transfer – represent a paradigm shift in agricultural policy. However, their implementation faces challenges, including the need for accurate land records, efficient DBT infrastructure, and political acceptance from stakeholders accustomed to the existing system.
Value Addition
- CACP (Commission for Agricultural Costs and Prices): The advisory body to the Government of India on MSP recommendations.
- National Food Security Act, 2013: While focusing on subsidized grains, it indirectly reinforces the rice-wheat centric system.
- MS Swaminathan Committee Report (2006): Advocated for a more holistic approach to agricultural policy, including diversification and farmer welfare.
- Quote: “The real problem is not the price of pulses, but the policy that makes it difficult for farmers to grow them.” – The Indian Express Editorial
The Way Forward
- Immediate Measure: Review and adjust MSPs for pulses and oilseeds to reflect market realities and provide a reasonable margin for farmers.
- Long-term Reform: Implement a pilot program for direct income transfer to farmers, decoupled from crop choice, to provide a stable and predictable income source.
- Diversification Incentives: Promote crop diversification through awareness campaigns, research and development in pulse varieties, and investment in post-harvest infrastructure.