India’s Pulses and Vegetable Oil Imports
In the fiscal year 2024-25, India saw record imports of pulses and vegetable oils, amounting to 7.3 million tonnes and 16.4 million tonnes respectively. The values of these imports were $5.5 billion for pulses and $17.3 billion for vegetable oils.
Factors Influencing Import Increase
- The increase in pulses imports was partly due to the El Niño-induced drought of 2023-24, which extended its impact on food inflation until December 2024.
- Pulses imports increased from an average of 2.6 million tonnes (2018-19 to 2022-23) to 4.7 million tonnes and 7.3 million tonnes in subsequent years.
- Vegetable oil imports more than doubled from 7.9 million tonnes in 2013-14, indicating a structural inevitability in rising imports.
Pulses Production and Import Dependency
- Scientific advancements have led to shorter-duration chana (chickpea) and photo-thermo insensitive moong (green gram) varieties.
- These advancements have helped increase domestic pulses production, limiting imports to mainly arhar (pigeon-pea) and urad (black gram).
- In a typical year, India can produce approximately 90% of its pulses consumption needs.
Challenges in Oilseeds Production
- India's soyabean yield is about one tonne per hectare, compared to 2.6 tonnes in Argentina and 3.4-3.5 tonnes in Brazil and the US.
- Prohibition of genetic modification for crops like soyabean and mustard has hindered yield improvements.
- Import dependence on vegetable oils is over 60%, with projections to increase further.
Policy Recommendations
- Raising minimum support prices (MSP) is not a viable solution unless accompanied by physical procurement, similar to rice and wheat.
- The current MSP for soyabean is Rs 5,328 per quintal ($615 per tonne), above the landed cost from Brazil and the US ($400-450 per tonne).
- A potential government strategy involves assuring oilseeds and pulses farmers of a minimum income support that incentivizes increased production.
- Ultimately, increasing yields and reducing cultivation costs are essential goals, particularly for oilseeds, to reduce import reliance.
