Forest Services
Thesis: The Supreme Court's directive for crop diversification highlights the urgent need for a reformed agricultural policy that adequately supports pulses through improved MSP and procurement mechanisms.
UPSC Relevance
- GS Paper 3: Agriculture, Food Security
- GS Paper 2: Governance, Policies
- Essay Angle: Agricultural Sustainability and Policy Reform
Context
- Recently, the Supreme Court of India directed the Union Government to revisit its agricultural policy framework and develop better incentives to encourage farmers to diversify from wheat and paddy to pulses, especially in North India.
Issues Highlighted by the Court
- Lack of Adequate MSP Incentives: Farmers often prefer wheat and paddy due to strong government procurement.
- However, pulse farmers rarely receive effective MSP support, reducing their incentive to cultivate pulses.
- MSP policies historically favoured rice and wheat, discouraging diversification into pulses and oilseeds.
- Uncertainty in Procurement and Market Access: Pulses lack the robust, guaranteed procurement systems seen for cereals like rice and wheat.
- For pulses, procurement under the Price Support Scheme (PSS) covers only a fraction, often under 30% in key states like Maharashtra—leaving most farmers exposed to private traders.
- Impact of Imports on Domestic Producers: India imports pulses such as yellow peas to stabilise prices.
- However, imports can depress domestic prices and discourage farmers from growing pulses.
- The Court suggested fixing the import price of yellow peas to ensure it does not harm domestic producers.
Crop Diversification
- Crop diversification refers to the practice of cultivating a variety of crops instead of relying on a single crop or crop pattern in a region.
- Shifting from the rice–wheat cropping system to pulses, oilseeds, millets, horticulture, and fodder crops is essential.
Why is Crop Diversification Necessary?
- Environmental Sustainability: The rice–wheat cropping system has caused significant soil degradation and water depletion.
- Nutritional Security: Pulses are rich in protein and essential nutrients, addressing malnutrition.
- Market Resilience: Diversification reduces dependency on a few crops, enhancing economic stability for farmers.
Key Challenges in Current Agricultural Policy
- Disproportionate MSP Framework: The existing MSP framework favours rice and wheat, neglecting pulses.
- The MSP for wheat is ₹2,015 per quintal, while for pulses like tur, it is only ₹6,000 per quintal (Source: Government of India).
- Inadequate Market Infrastructure: Limited access to markets for pulse farmers hampers their income potential.
- Only 30% of pulse production is covered under the PSS in Maharashtra (Source: Ministry of Agriculture).
- Dependency on Imports: India's pulse production was 25.23 million tonnes in 2021-22, but imports accounted for 3.5 million tonnes (Source: Ministry of Commerce).