Mentor’s Comment

Pulses policy reflects a structural tension between consumer price stabilization and farmer income security. Weak procurement architecture, import dependence, and trade commitments intersect with federal politics and food security imperatives.

Why in the News?

India’s pulses policy is back in focus after reports of possible import commitments under a trade deal with the United States. This appears to clash with the government’s Mission for Aatmanirbharta in Pulses, raising fresh concerns among farmers about the gap between self-reliance goals and trade decisions.

Why Are Pulses Crucial to India’s Food and Farm Economy?

1. Protein Dependence: Pulses supply nearly 25% of non-cereal protein intake.
2. Livelihood Base: Around five crore farmers depend on pulse cultivation.
3. Persistent Demand Gap: Production ~2.5 crore tonnes; demand ~3 crore tonnes; imports fill deficit.
4. Food Security Linkage: Dependence on imports exposes vulnerability to global price fluctuations.

How Do Imports Create Immediate Market Distortions?

1. Centralized Decision Impact: A single central decision to import can immediately lower domestic prices.
2. Household Spending Relief: Imports reduce consumer expenditure when supply is tight.
3. Farmer Income Shock: Price depression directly hurts domestic producers.
4. Market Absorption Constraint: Domestic markets cannot always absorb “extra” supply, worsening price collapse.
5. Political Sensitivity: Trade commitments perceived as favouring foreign producers revive post-2020 protest anxieties.

Why Is the Procurement Regime Considered Structurally Weak?

1. Limited Coverage: Procurement under the Price Support Scheme ranged between 2.9%-12.4% (2019-24).
2. MSP Without Guarantee: Absence of reliable procurement undermines MSP credibility compared to rice and wheat.
3. Organised Neglect: Weak procurement mechanisms, cereal bias, and institutional design collectively marginalize pulses.
4. Distress Sales: Inadequate procurement centres force farmers to sell below MSP to private traders.
5. Investment Disincentive: Uncertain returns discourage productivity-enhancing investments.

What Structural Constraints Affect Pulse Cultivation?

1. Rain-fed Cultivation: Pulses largely grown in rain-fed regions, increasing climate risk.
2. Lower Yields: Productivity remains below international competitors.
3. Underinvestment Cycle: Weak price assurance leads to low investment, perpetuating low yields.

What Does the Mission for Aatmanirbharta in Pulses Seek to Achieve?

1. Financial Allocation: ₹11,440 crore outlay.
2. Area Expansion: Target of 310 lakh hectares.
3. Production Goal: 350 lakh tonnes by 2030-31.
4. Strategic Objective: Reduce import dependence and achieve self-sufficiency.
5. Credibility Challenge: Past unfulfilled promises create farmer scepticism.
6. Policy Contradiction Risk: Import commitments contradict mission objectives.

Why Does This Issue Trigger Political Sensitivity?

1. Farm Protest Context: Post 2020-21 protests, trade and agri-reform decisions face scrutiny.
2. Federal Dimension: Central trade decisions affect state-level agriculture.
3. Trust Deficit: Perception of favouring foreign producers undermines domestic policy legitimacy.
4. Food Security Vulnerability: Continued import dependence sustains long-term strategic risk.

Way Forward

1. Stronger Procurement: Expand procurement centres in pulse-growing areas to ensure MSP reaches farmers and reduce distress sales.
2. MSP Credibility: Ensure timely and predictable procurement to build farmer confidence and encourage investment.
3. Stable Import Policy: Align imports with domestic production cycles to prevent sudden price crashes.
4. Higher Productivity: Promote improved seeds, irrigation support, and climate-resilient varieties to raise yields.
5. Crop Diversification: Reduce policy bias toward rice and wheat and incentivise pulses through procurement and subsidies.

Conclusion

Pulses policy reflects the tension between consumer price stability and farmer income security. Import dependence without strong procurement weakens domestic incentives and deepens vulnerability. Long-term food security requires credible MSP implementation, higher productivity, and a trade policy aligned with self-reliance goals.

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