The Union budget FY26 is likely to announce measures for boosting the production of oilseeds and pulses, with a view to reducing the country’s import dependence for these items. Assured procurement of these commodities at minimum support price (MSP) from farmers, and higher allocation for R&D for developing high-yielding seed varieties, and incentives for crop diversification are likely to be part of a policy package to be unveiled.
These measures, suggested by he agriculture minister Shivraj Singh Chouhan, according to sources, will encourage farmers to grow these commodities and earn higher incomes from their cultivation.
Currently, pulses and oil seeds are grown only in certain pockets of the country, with the area under cultivation being largely restricted to around 55 districts.
In recent years, import of oil seeds has grown at a scorching pace. Edible oil imports in oil year 2023-24 (Nov-Oct) stood at Rs 1.31 lakh crore, marginally lower than in the previous year. Around 58% of the country’s annual consumption of edible oils is met through imports.
As for certain key pulses varieties, large imports occur at regular intervals, especially when domestic production drops. Sporadic cases of elevated prices of pulses and oil seeds are a key contributor to food inflation.
Sources told FE that the forthcoming budget may consider increasing allocation for the research and development through Indian Council for Agricultural Research (ICAR) to boost productivity of pulses and oilseeds.
Since Chouhan assumed charge in June last year, through series of meeting with officials of agriculture ministry, ICAR and state government officials, has stressed need for strengthening procurement system and increase productivity for oilseeds and pulses
The announcement about the assured procurement of oilseeds and pulses through MSP purchase operations in the budget may also give a signal towards the protesting farmers in Punjab prior to the agriculture ministry’s meeting with agitation farmers on February 14
In one of his interactions with ICAR scientists, Chouhan had raised concern about lower yield of soybean and other crops. He said that higher yields would reduce farming costs and overall prices. India imports 58% and 15% of its annual edible oil and pulses consumption respectively.
The government is likely to announce measures aimed at boosting production of pulses and oilseeds especially in the non-traditional areas, including 100% procurement of three varieties of pulses – tur, urad and lentils at the minimum support price (MSP) in the budget.
Currently, area under pulses and oilseeds is only a fraction of the country’s top crop area, and their cultivation is confined to just 55 districts. Though up to 40% of the marketable surplus of three pulses varieties – urad, arhar and masoor – can be purchased by the government under an extant price support scheme, actual purchases are abysmally low.
This season, the central agencies such as Nafed and NCCF have purchased a record 1.3 million tonne of soybean from the farmers at MSP under the agriculture ministry’s price support scheme in the current season (2024-25) while purchase of pulses under the scheme is expected to commence soon.
Chouhan during his close to two decades tenure in Madhya Pradesh as Chief Minister had transformed agriculture in the state through ramping up procurement of wheat, pulses and vegetables. Madhya Pradesh has also emerged one of the biggest producers of onions, chana (gram) and moong in the last decade.
In addition, budget is expected to provide a road map for ensuring that productivity of several crops is enhanced keeping in consideration the increase in several extreme weather events like unseasonal rains, rise in temperature and regional variations in rainfall pattern.
For 2024-25, Rs 1.32 lakh crore has been budgeted for the department of agriculture and farmers welfare, including Rs 9,941 crore for the agricultural research, with the launch of initiatives in the last few months, actual expenditures could be higher than budgeted.
A major chunk of the budget for the agriculture ministry is allocated towards PM Kisan (Rs 60,000 crore), Under the modified interest subvention scheme (Rs 22,600 crore), Pradhan Mantri Fasal Bima Yojana (Rs 14,600 crore).
