Dr Ashwani Mahajan
According to latest data production of pulses has reached 22.24 million tonnes in 2016-17, up from 16.35 million tonnes in 2015-16, that is, 36 percent increase. Similarly production of oilseeds has increased from 25.2 million tonnes to 33.56 million tonnes during the same period which shows 33 percent increase.
This Increase is Special
This significant increase in production of pulses and oilseed, after decades of stagnancy is indeed special. If we look at production trends in the last couple of decades, we find that production of pulses has remained more or less standstill. Prices of pulses continue to increase, however the benefit of the same could never reach farmers and in fact speculators enjoyed all the gains.
Consumers on the other hand were the worst sufferers and the most important source of protein, pulses started getting out of reach of the common man. After the recent increase in the production of pulses, pulses are getting cheaper and affordable. Though, it’s important to ensure remunerative prices for farmers; equally important is to keep prices under check, taming the speculators. Increase in production has actually contained the speculators effectively. To increase the availability of pulses in the country, India has recently made various agreements with many African countries, including Mozambique. On the other hand increase in the production of oilseeds in the country has given a ray of hope, as this would increase production of edible oils in the country, fall in prices and reduce dependence on imports.
Dependence on Imports to Decrease
Almost stagnant production of oilseeds and pulses had lead to big gap between fast increasing domestic demand and domestic production, to be obviously filled by imports. So far as production of wheat and rice is concerned, continuously increasing productivity on the on hand and area under cultivation of wheat and rice has not only made the country self dependent in wheat and rice, we are exporting huge production of sugarcane has also increased significantly, so much so glut in sugarcane production, sometimes cause havocs for the farmers, when they fail to fetch sugarcane payments from mills.
With lower domestic prices of pulses, and imposition of 10 percent import duty (which was zero percent earlier) on pulses, would certainly reduce our imports of pulses. We must keep in mind that if production of pulses keep low, international prices also move up; and therefore increasing domestic production will keep international prices also low and our import bill come down significantly. Increase in domestic production therefore would not only save valuable foreign exchange by reducing imports, it would also improve nutrition of common man due to calming down of prices, making them more affordable for poor people. This would also improve public health and government’s health and nutrition expenditure would also come down.
Pulses & Oilseeds
Though it is true that arable land in the country has not increased, rather, it has come down marginally. However, due to support of the government to the wheat and rice production in the form of high yielding varieties of seeds, support prices, irrigation etc., production of wheat and rice has increased in the country. Similarly production of sugarcane also increased significantly due to fixation of high minimum prices. However, farmers continued to remain under distress due to delayed payments from sugar mills.
Pulses and oilseeds have been worst affected due indifference of the government, knowingly or unknowingly. It’s notable that whereas production of wheat was only 55 million tonnes in 1990-91, increased to 92.4 million tonnes in 2015-16. Production of rice increased from 74.0 million tonnes to 103.5 million tonnes during this period, while pulses production increased from 14.3 million tonnes to only 16.4 million tonnes during this period. This time, in just one year, the production of pulses has increased by nearly 6 million tonnes, that is, 36 percent increase, which is indeed remarkable and commendable. The production of oilseeds also increased from just 19 million tonnes in 1990-91 to just 25.2 million tonnes in 2015-16. This year, 33 percent increase in production of oilseeds has changed the whole picture.
But during this time due to increase in the income of the common man, the demand for pulses increased substantially as a major source of protein, due to which the imports of pulses increased in the country. Similarly, the lack of edible oils, led to substantial increase in imports. In 2015-16 the import of pulses and edible oils reached Rs 94,239 crore, that is, about 14.4 billion dollars. This year, if production of pulses and edible oils increased 36 percent and 33 percent, respectively, it is possible that imports of pulses and edible oils may come down by at least 15%, which could reduce the import bill by about 14 thousand crores ($ 2.2 billion).
Inflation will also be less
In the past few years, prices of both pulses and edible oils have also increased. Figures show that from 2004-05 to 2015-16; food inflation had been 80 percent or 5.5 percent annually. Due to this inflation, cost of living for the poor became very costly. However, inflation in pulses was 247 percent that is 12 percent annually.
As a result of the 36% rise in the production of pulses this year, wholesale prices of pulses came down from Rs 150 to 200 per kg last year to 60 to 70 rupees per kg now. Along with imports of edible oils, and that too of inferior quality, the prices of edible oils have decreased in the last few years. With the increase in domestic production, the production of better oils in the country will improve the quality of oils in the consumption of our people and the prices will also remain cool.
Whether it is a matter of raising the income of the farmer, keeping prices calm or reducing the dependence on imports, and saving of the foreign exchange or improving our food basket, the only way is to increase production of pulses and edible oils in the country, rather than remaining dependant on imports.
(The author is Associate Professor, PGDAV College, University of Delhi)
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