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India, Oilseeds, Pulses, Seeds

Increase in production to result in higher income for farmers and benefit the country’s agricultural eco system 

The Government’s priority is to increase production of oilseeds and pulses and thus fulfilling the objective of Atmanirbhar Bharat. The formulated strategies are to increase production through area expansion, productivity through HYVs, MSP support and procurement.. Availability of good seeds for farming increases production and productivity by 20-25 per cent, resulting in higher income for farmers and benefitting the agriculture eco system and the nation’s economy. Due to the erratic and deficit rainfall in some states, the need for early sowing of rabi crops especially pulses and oilseeds has increased. 

For Rabi 2022-23, the focus of the Government is also to provide seed minikits of pulses & oilseeds targeting monsoon deficit regions in the states apart from the regular distribution. The minikits are being provided by the Central Agencies such as National Seeds Corporation (NSC), NAFED etc and these are wholly funded by the Government of India through the National Food Security Mission.

The objective of the Seed Minikit Programme is to:

  • Popularise the latest crop varieties among the farmers to increase the production and productivity.
  • To distribute seed minikits of pulses and oilseeds in the states where rainfall receiving low/deficit during Kharif, 2022 such as Uttar Pradesh, Bihar, Jharkhand, part of the Madhya Pradesh & West Bengal.
  • To cover non- traditional area for rapeseeds & mustard (R&M) in Vidharbha Region of Maharashtra.
  • To distribute major rabi oilseeds as Groundnut for southern states such as Tamil Nadu, Andhra Pradesh, Telangana and Karnataka and minor oilseeds such as linseed in Uttar Pradesh, Madhya Pradesh, Bihar, & Rajasthan and safflower in Maharashtra, Karnataka & Telangana.

Increase in production to result in higher

AgroPolicy, Oilseeds

Brings all states/UTs under Single Central Order on stock limits for edible oils and oil seeds

The government has notified a Central Order on March 30, 2022, amending the removal of licensing requirements, stock limits and movement restrictions on Specified Foodstuffs Order, 2016 and its Central Order dated February 3, 2022, by extending the stock limits for all edible oils and oil seeds put together for a period up to December 31, 2022, for all States/Union Territories. This order is effective from April 1, 2022, up to December 31, 2022.

Six states viz Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar that had issued their control order in pursuance of the

Central Order dated October 8, 2022, have also been brought under the purview of the latest order with effect from April 1, 2022. With the issue of this Central Order, all States/UTs have been brought under one single order. It is mentioned that the six states mentioned above were earlier exempted from the Central Order dated February 3, 2022, as they had issued their Central Orders.

Eight central teams have been deputed by the Government of India, Department of Food & Public Distribution till April 30, 2022, for strict compliance/ enforcement of the above Central Order. The surprise inspections are presently underway in selected districts of eight States for checking the stocks of edible oils and oilseeds at ground level i.e with the retailers, wholesalers, big chain retailers and processors. These states are Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, Telangana, Gujarat, West Bengal and Delhi. Strict action in accordance with the provisions in the EC Act will be initiated against the entities if found to be violating the Act.

The above Stock Limit Order notified by the government empowers the Union Government and all states/UTs to regulate the storage and distribution of edible oils and oilseeds. This step coupled with surprise inspections seeks to help the Government in checking the hoarding of edible oils and oilseeds in the country and ensure that the prices of edible oils, which are a basic necessity, do not go out of reach of the common man.

Brings all states/UTs under Single Central Order

AgroPolicy, Foodgrains, Oilseeds, Pulses

Record foodgrains production of 316.06 million tonnes is estimated in the country

The of production of major crops for the year 2021-22 have been released by the Ministry of Agriculture and Farmers Welfare. Record foodgrains production of 316.06 million tonnes is estimated. 

As per 2nd Advance Estimates, the estimated production of major crops during 2021-22 is as under:

  • Food grains –316.06 million tonnes. (record)Rice –127.93 million tonnes (record)
  • Wheat –111.32 million tonnes (record)
  • Nutri / Coarse Cereals –49.86 million tonnes 
  • Maize –32.42 million tonnes (record)
  • Pulses –26.96 million tonnes (record)
  • Tur –4.00 million tonnes
  • Gram – 13.12 million tonnes(record)
  • Oilseeds –37.15 million tonnes
  • Groundnut – 9.86 million tonnes
  • Soybean –13.12 million tonnes
  • Rapeseed and Mustard –11.46 million tonnes (record)
  • Sugarcane – 414.04 million tonnes (record)
  • Cotton –34.06 million bales (each of 170 kg).
  • Jute and mesta –9.57 million bales (each of 180 kg).

As per 2nd Advance Estimates for 2021-22, total food grains production in the country is estimated at a record 316.06 million tonnes which is higher by 5.32 million tonnes than the production of food grain during 2020-21. Further, the production during 2021-22 is higher by 25.35 million tonnes than the previous five years (2016-17 to 2020-21) average production of food grains.

Total production of rice during 2021-22 is estimated at a record 127.93 million tonnes. It is higher by 11.49 million tonnes than the last five years’ average production of 116.44 million tonnes.

Production of wheat during 2021-22is estimated at a record 111.32 million tonnes. It is higher by 7.44 million tonnes than the average wheat production of 103.88 million tonnes.

Production of nutri / coarse cereals is estimated at 49.86 million tonnes, which is higher by 3.28 million tonnes than the average production.

Total pulses production during 2021-22 is estimated at 26.96 million tonnes which is higher by 3.14 million tonnes than the last five years’ average production of 23.82 million tonnes.

Total oil seeds production in the country during 2021-22 is estimated at a record 37.15 million tonnes which is higher by 1.20 million tonnes than the production of 35.95 million tonnes during 2020-21. Further, the production of oil seeds during 2021-22 is higher by 4.46 million tonnes than the average oil seeds production.                

Total production of sugarcane in the country during 2021-22 is estimated at 414.04 million tonnes which is higher by 40.59 million tonnes than the average sugarcane production of 373.46 million tonnes. 

Production of cotton is estimated at 34.06 million bales (each of 170 kg) is higher by 1.12 million bales than the average cotton production of 32.95 million bales. Production of jute and mesta is estimated at 9.57 million bales (each of 180 kg). 

Record foodgrains production of 316.06 million tonnes

AgroPolicy, Oilseeds

The earlier notification was valid till March 31, 2022

In an effort to further cool down the prices of edible oils, the government has taken various steps, the latest being an Order notified by the Government on February 3, 2022 specifying the stock limit quantities on edible oils and oilseeds upto June 30, 2022.

The government had earlier notified the stock limits on edible oils and oilseeds vide its order dated October 8, 2021, and it is valid up to March 31, 2022. However, the quantities of stock limits of oils and oilseeds were left to be decided by the states/UTs on the basis of available stock and consumption pattern.

On review of this order, it was observed that only six states viz. Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar had imposed the stock limit order in pursuance of the Central Order in their state. Since the implementation of stock limits across all states/UTs is necessary to transfer the full benefit of price control to end consumers, the Union Government has vide its Order dated February 3, 2022, specified the quantities of stock limits of edible oils and oilseeds for all States/UTs except the above mentioned six states.

Consequent to this reduction, the total duty is now 7.5 per cent for crude palm oil and 5 per cent for crude soyabean oil and crude sunflower oil. The basic duty on RBD Palmolein Oil has been slashed to 12.5 per cent from 17.5 per cent recently. The basic duty on refined soybean and refined sunflower oil has been slashed to 17.5 per cent from 32.5 per cent. It was observed that the maximum benefit of rationalisation of duty had not been passed on to the end consumers and this latest initiative of the government is another step in this direction.

For edible oils, the stock limit would be 30 quintals for retailers, 500 quintals for wholesalers, 30 quintals for retail outlets of bulk consumers i.e. big chain retailers and shops and 1000 quintals for its depots. Processors of edible oils would be able to stock 90 days of their storage capacities.

For edible oilseeds, the stock limit would be 100 quintals for retailers, 2000 quintals for wholesalers. Processors of edible oilseeds would be able to stock 90 days of production of edible oils as per daily input production capacity.

Exporters and importers have been kept outside the purview of this order with some caveats. The order further states that in case the stocks held by respective legal entities are higher than the prescribed limits then it has to be declared on the portal (https://evegoils.nic.in/eosp/login) of the Department of Food & Public Distribution and bring to the prescribed stock limits in this Control Order within 30 days of the issue of this notification.

The respective legal entities of the six states which have been exempted in this order are to follow the stock limits prescribed by the state administration and declare the same on the above-mentioned portal.

The above measure is expected to curtail any unfair practices like hoarding, black marketing etc. in the market which may lead to an increase in the prices of edible oils. The above would also contribute to a further reduction in prices by ensuring that the maximum benefit of the duty reduction is passed on to the end consumers.

The earlier notification was valid till March

Finance, Seeds

The finance minister’s announcement to use Kisan drones to map the production is indeed a very good step

The Finance Minister of India has announced various steps particularly focusing on technology in agriculture, which is a very progressive move, according to Bimal Kothari, Vice-chairman, India Pulses and Grains Association (IPGA).

He adds, “Crops like pulses and edible oil seeds require special attention because India has been importing them. Though the production of pulses has been given a boost, still, we are importing about 2.5 million tonne of pulses annually. Also, the demand for pulses is increasing to one million tonne annually, so by 2030, India’s demand will be around 30 to 33 million tonne of pulses. Therefore, we need to enhance the production and not just focus on increasing the minimum support price (MSP) every time as it is going to hurt the consumers in the long run. Our Prime Minister’s vision to double farmers’ income can be attained by increasing productivity. As of now, our productivity is low in comparison to international levels.”

According to him, the finance minister’s announcement to use Kisan drones to map the production is indeed a very good step. This will allow to estimate the production and understand the crop losses accurately. It will also be very useful in spraying insecticides. Not just the farmers but even the government will benefit from this drone scheme.

However, he opined that the measures announced for startups in the budget will encourage Agri-tech although this is at a very initial stage as there is still a lot that needs to be done. The contribution of the farming sector in GDP is very less hence we need to bring in more value addition.

Kothari added, “This will happen only if we stop relying on sales of raw materials and use these raw materials to sell value-added products. In the pulses sector, a lot of development is being done in the western world in terms of alternative protein or plant-based meat which is now being introduced in India as well. Therefore, if advanced technologies are brought and set up in India it will not only help the trade and industries but will also help the farmers immensely. As value addition will have an impact on the farming sector. Also, the finance minister has announced the allowance of Rs 2,37,000 crores for procurement of MSP.”

He further mentioned that the government is doing a lot of programmes for wheat and rice which is going on for decades but now more focus is required on oilseeds and pulses. In the pulses sector, there has been procurement in the last three to four years, but this needs to be more channelised. So, the government can do a market intervention to control the prices when the production gets affected due to unavoidable events. This is more important in the pulses sector because India’s pulses production is far better than pulses production in other countries. Therefore, if India faces any shortage of pulses, it won’t be possible to make it up through international markets as well.

The finance minister’s announcement to use Kisan