Maintaining high import duties on sensitive agricultural commodities like rice and resisting pressure to open up the domestic sector to low tariffs will be crucial for preserving India’s self-sufficiency and ensuring food security for its population, a report said on January 1.

Economic think tank GTRI (Global Trade Research Initiative) in its report said that India needs to cut its reliance on imported vegetable oils to promote better health outcomes and also reduce the import bill.

This will need educating consumers about the health benefits of using locally produced oils like mustard, groundnut, and rice bran in lieu of imported oils.

India is the world’s largest importer of vegetable oils, with imports estimated to double to $20.8 billion in 2023-24 from $10.8 billion in 2017-18.

It added that the U.S. and E.U. currently support agriculture by using the latest technology to maximise output, high tariffs (or import duties) to discourage imports and massive subsidies to push exports.

Developed and agricultural-exporting countries like Australia always push developing countries like India to cut duties and subsidies on agricultural commodities to push their exports.

India has built a high import tariff wall (30-100% on sensitive items) to check subsided imports. India also does not cut tariffs on sensitive items for even its FTA (free trade agreement) partners.

The report said that this has paid India with self-sufficiency in almost all products.

“India needs to continue with its current approach to not open the domestic agriculture sector to low tariff subsidised imports. Upholding high import tariffs on sensitive items and resisting pressure to open up the domestic agriculture sector to low-tariff subsidised imports will be crucial for preserving India’s hard-earned self-sufficiency and ensuring food security for its burgeoning population,” it said.

According to the UN’s Food and Agriculture Organisation, net cereal imports by developing countries will almost triple over the next 30 years while their net meat imports might even increase by a factor of almost five.

While most countries will be dependent on food imports, India is lucky to be self-sufficient in all agriculture and food items except vegetable oils.

India’s agricultural imports are estimated to touch $33 billion in 2023 which will be just 4.9% of total merchandise imports.

“This has become possible due to focus on policies like the green and white revolution, high import tariffs and active negotiations at the WTO (World Trade Organisation) to protect food security concerns for the 1.4 billion people over developed country pressure to open Indian agriculture to subsidised imports,” GTRI co-founder Ajay Srivastava said.

On the sugar sector, the report said that India is the world’s largest sugar exporter after Brazil, but this year, it will import sugar in vast quantities as the sugar imports are estimated to grow steeply by 385.4%, from $252 million in 2022 to $1,223.4 million in 2023.

Imports have increased in 2023 due to a decline in domestic production caused by weak rains.

India dominates the global sugar scene as the largest producer, consumer, and second-largest exporter. Its sugar industry, ranking second in agricultural-based sectors, employs millions.

“Despite this, the industry faces competitiveness challenges, relying heavily on subsidies, free power, and water, leading many times to overproduction and market volatility. Water scarcity compounds issues, threatening industry sustainability,” Mr. Srivastava said.

To thrive, the Indian sugar sector must aim to boost sugarcane yield from 55 to the global average of 70 tonnes per hectare, free from subsidies.

“Production uncertainties force frequent policy changes to keep local prices in control, but dissuading long-term investments and hindering strategic planning for future businesses,” he added.

Vegetable oil, pulses, and fresh and dry fruits account for 72.1% of agriculture imports of India in 2023. Vegetable oil is the largest import constituent, accounting for 51.9% of total agriculture imports of India.

India imports 4 types of oils: Crude Palm Oil (CPO), Soya Bean Crude Oil, Crude Sunflower Seed Oil, and Refined Bleached Deodorized (RBD) Palmolein.

The report said that imports in 2023 are set to decline by 18.6% to $17.1 billion compared to 2022, primarily due to a fall in import prices, not in quantities.

Further, it said that India’s pulses imports are expected to rise by 44% to surpass $2.7 billion in 2023 as compared to 2022.

The major pulses and import values in 2023 are Masoor (lentil) at $1.13 billion, Arhar/Tuar (pigeon peas) at $766 million, Urad (beans of vigna mungo) at $536 million, Rajma (kidney beans) at $120 million, and Kabuli Chana at $76 million.

India is the world’s largest producer and consumer of pulses. It aims to enhance domestic production and cut imports by introducing high-yielding, disease-resistant pulse varieties.

The key challenges include addressing water scarcity and mitigating market volatility issues.

“Major efforts extend to reclaiming fallow land, promoting intercropping, and focusing on rainfed areas. Also, the market and infrastructure support involve ensuring fair prices through Minimum Support Price (MSP), investing in storage and processing, and establishing direct marketing channels,” he said.

Vice President Jagdeep Dhankhar. File
| Photo Credit: ANI

Vice President Jagdeep Dhankhar on Friday said India is a rising star in the global economy primarily due to agriculture and agri-based industry, and stressed that the country’s rise is “unstoppable”.

Addressing the 61st convocation of Indian Agricultural Research Institute (IARI), Mr. Dhankhar said: “In September 2022, India became the 5th largest economy in the world. It has not come easily. It has been a cesarean.” Indeed, it is a milestone achievement and the agriculture sector had a significant contribution in India’s global rise, he said.

Agriculture is the backbone of the Indian economy. It is primarily because of the agriculture and agri-based industry, India is a rising star in the global economy, he added.

Mr. Dhankhar further said, India that everyone is seeing today is wonderful. “India’s rise is unstoppable… We are the most favourite destination of opportunities and investment,” he noted.

Such an ecosystem has been developed that affirmative policies are in place to attract talent and investment, he said.

“By the end of the decade, India will be the third largest economy in the world,” he said and urged young Indians to lay the foundation for 2047 when India enters the centenary of its independence.

Asserting that value addition to agri-produce can bring economic revolution, the Vice President said IARI has the capacity and intellect to add value to farm produce.

He also asked the institute to bring a new dimension in agri-education which should become the epicentre of entrepreneurship that should result in research and innovation.

Mr. Dhankhar also expressed confidence that IARI will continue to serve the nation with innovations, quality human resource and technological adaptations in the farm sector.

Agriculture Minister Narendra Singh Tomar, Minister of State for Agriculture Kailash Choudhary, ICAR Director General Himanshu Pathak, among other officials were present at the event.

IARI Director A.K. Singh said IARI — seat of India’s Green Revolution — continues to play a pivotal role in the livelihood security of billions of people in the country.

It is a matter of immense pride that even in the face of the global crisis resulting from the COVID-19 pandemic, IARI has excelled in its stride towards excellence in research for enhancing farmers’ income through improving crop varieties and technologies.

He said science-led innovation in agricultural research, education and extension is IARI’s primary motto to meet the sustainable development goals.

“We pledge our commitment towards prosperous India through development of technologies for promoting eco-friendly and sustainable agriculture,” he added.

About 402 students, including 14 foreign students, received the degrees on the successful completion of their masters and doctoral programs.