Why in News?

• Pulses and oilseed farmers across India face a persistent crisis due to the lack of systematic government procurement at Minimum Support Prices (MSP).
• Unlike rice and wheat, which benefit from robust public procurement, crops like moong, chana, masoor, and soyabean are often sold in open markets at rates well below their MSPs.
• This disparity leaves farmers vulnerable to market fluctuations, forcing them to sell at loss-making prices, despite using high-yielding, recommended crop varieties.
• In regions with black cotton soil, where pulses and oilseeds are naturally suited, farmers have limited cropping options, making them heavily dependent on these undervalued crops.
• Despite poor returns, many continue planting these crops due to the absence of viable alternatives, reflecting a systemic policy gap in supporting India’s pulse and oilseed producers.

What’s in Today’s Article?

• Record Pulses Imports: A Setback for Domestic Growers
• India’s Vegetable Oil Crisis: Rising Imports and Farmer Distress

Record Pulses Imports: A Setback for Domestic Growers

• All-Time High Imports in 2024-25
  • India imported 7.3 million tonnes (mt) of pulses worth $5.5 billion in 2024–25, surpassing the previous record of 6.6 mt ($4.2 billion) in 2016–17.
  • This marks a significant jump from the average 2.6 mt ($1.7 billion) imported annually between 2017–18 and 2022–23.
• Past Gains in Self-Sufficiency Reversed
  • India had achieved relative self-sufficiency in pulses with output rising to 27.3 mt in 2021–22 and 26.1 mt in 2022–23, thanks to high-yield, short-duration varieties of chana and moong.
  • These gains were undone by an El Niño-induced drought in 2023–24, which reduced production to 24.2 mt, recovering only slightly to 25.2 mt in 2024–25.
• Duty Cuts Trigger Import Surge
  • With retail inflation in pulses hitting double digits by mid-2023, the government slashed import duties, prompting a surge in imports.
• Inflation Falls, Farmers Hit
  • The import surge cooled CPI inflation in pulses, which dropped from 3.8% in Dec 2024 to -8.2% by May 2025.
  • However, this led to market prices falling below MSPs.

India’s Vegetable Oil Crisis: Rising Imports and Farmer Distress

• Soaring Import Dependence
  • Over the past 11 years, India’s vegetable oil imports have doubled—from 7.9 million tonnes (mt) in 2013–14 to 16.4 mt in 2024–25.
  • In value terms, imports rose from $7.2 billion to $20.8 billion, driven partly by the Russia-Ukraine war's supply disruptions.
• Heavy Reliance on Imported Oils
  • In 2024–25, India imported:
    • 7.9 mt of palm oil (Indonesia, Malaysia)
    • 4.8 mt of soyabean oil (Argentina, Brazil)
    • 3.5 mt of sunflower oil (Russia, Ukraine, Argentina)
  • Meanwhile, domestic oil production (including cottonseed, rice bran, maize) remains stagnant at ~10 mt, resulting in an import dependency of over 60%.
• Inflation and Duty Cuts
  • With vegetable oil inflation at 17.9% in May 2025, the government slashed basic customs duty on crude palm, soyabean, and sunflower oil from 20% to 10%, reducing the total import tariff from 27.5% to 16.5%.
• Global Projections and Market Flooding
  • The USDA expects global vegetable oil production to hit 235 mt in 2025–26, led by palm (80.7 mt) and soyabean (70.8 mt).
  • Lower Indian tariffs may lead to even higher imports, including from the U.S., per a USDA report.
• Impact on Indian Farmers
  • The Soyabean Processors Association of India has warned that the duty cut will flood Indian markets with cheaper oils, hurting local prices.
  • This may discourage farmers from sowing oilseeds, especially soyabean, in the upcoming kharif season, affecting domestic production further.