India’s Agri-Import Surge

• India is facing a dual challenge in the agricultural sector, pricing dependence on imported pulses and edible oils, & falling returns for domestic farmers cultivating crops like soybean & moong.
• This trend not only undermines self-reliance in essential food commodities but also raises critical questions about the sustainability and resilience of India’s agri-economy in the long term.

Alarming Rise in Imports: Statistics

• Pulses Imports: In 2024–25, India imported 7.3 million tonnes (mt) of pulses worth $5.5 billion, breaking previous records set in 2016–17. The surge follows a sharp decline in imports over the last five years, driven by earlier gains in domestic production.
• Vegetable Oil Imports: Edible oil imports hit 16.4 mt in 2024–25, double the volume a decade ago.

• India now depends on imports for over 60% of its vegetable oil consumption.

Factors Responsible for Rising Imports

• Weather Shocks: El Niño-induced drought in 2023–24 led to a dip in pulses production from 27.3 mt (2021–22) to 24.2 mt, causing inflation and triggering duty cuts on imports.
• Government Procurement Apathy: Despite an MSP of ₹8,682 per quintal for moong, farmers are forced to sell at ₹6,000 due to poor procurement.
• Farmers growing pulses & oilseeds lack the assured procurement available to rice & wheat growers.

• Policy Moves Encouraging Imports: In May 2025, the Centre cut basic customs duty on crude palm, soyabean, and sunflower oils from 20% to 10%, slashing the total tariff from 27.5% to 16.5%.
• Underdeveloped Mining Sector: Only ~10% of India’s mineral-rich geography has been explored due to outdated policies and low private investment.
• Lack of Processing Infrastructure: Inadequate oilseed crushing units and critical mineral refining capacities limit domestic value addition.

Impact on Farmers of Rising Imports

• Unviable Cultivation: Falling mandi prices for pulses & oilseeds make cultivation economically unviable.
• Sowing Disincentive: Farmers are disincentivised from sowing soyabean and other oilseeds in the upcoming kharif season, risking a further drop in domestic production.
• Threat from Cheap Imports: The Soyabean Processors Association of India has warned that cheaper imports could flood the market, harming farmer incomes and rural livelihoods.
• Rural Livelihood Stress: Lower earnings from agriculture contribute to rural distress, migration, and economic insecurity.
• Erosion of Crop Diversification: Farmers revert to rice or wheat due to assured procurement, weakening efforts to promote sustainable crop diversification.

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Implications of Rising Imports

• Inflation Moderation: While CPI inflation in pulses has cooled (down to -8.2% in May 2025), the fall in farmer prices is a red flag for rural distress.
• Vegetable Oil Inflation: Remains high at 17.9% (May 2025), despite falling global prices, highlighting domestic supply bottlenecks.
• Strategic Vulnerability: High import dependence in essential foods risks food security and weakens India’s negotiation capacity in global markets.
• Trade Deficit Worsening: Imports of essential food items and minerals strain India’s current account, increasing the trade deficit and foreign exchange burden.
• Stalled Domestic Industrial Growth: Low investment in domestic processing (rare earth refining, oilseed crushing) stunts value addition and employment generation.

Way Forward

• Strengthen MSP Procurement: Provide institutional support for oilseeds and pulses, similar to rice and wheat, ensuring fair prices to farmers.
• Climate-Resilient Agriculture: Promote drought-tolerant, short-duration pulse and oilseed varieties to safeguard against erratic weather.
• Boost Domestic Processing Capacity: Increase investments in oil extraction and pulse milling to make domestic production competitive.
• Review Import Duty Structure Periodically: Maintain a balance between controlling food inflation and protecting farmers interests.
• Promote Diversification of Crops: Incentivise farmers to grow pulses and oilseeds through subsidies, extension services, and assured marketing.

Rising agri-imports threaten India’s vision of Atmanirbhar Krishi and weaken strategic autonomy in essentials. A shift towards “production-linked self-reliance with farmer-centric policies” is vital for a resilient and sustainable agri-economy.

Reference: Indian Express

PMF IAS Pathfinder for Mains – Question 231

Q. India’s increasing import dependence on essentials such as pulses, edible oils, and critical minerals presents structural challenges to Atmanirbharta and national security. Analyse the underlying causes and propose a strategic roadmap for achieving self-reliance. (250 Words) (15 Marks)

Approach

• Introduction: Write briefly about the rising imports in India with recent data.
• Body: Write structural challenges to Atmanirbharta and national security, the underlying causes, and propose a strategic roadmap for achieving self-reliance.
• Conclusion: Emphasis on strengthening domestic production and procurement to secure both farmer incomes and strategic autonomy.