Lift Restrictions: Strengthen Agriculture, Stabilize Markets, Support Farmers

Why in the news?

India’s wheat and onion production is rising, yet export duties and stock limits hinder farmers. Removing these restrictions will prevent price crashes, ensure stable markets, and boost agricultural growth, fostering a more market-driven and resilient farming sector.

Lift Restrictions: Strengthen Agriculture, Stabilize Markets, Support Farmers

About Current Agricultural Scenario:

  • The Modi government recently lifted the export ban on broken rice (in place since 2022).
  • Wheat and onion harvesting is ongoing, with higher sowing areas than last year.
  • Bumper production expected, reflected in onion prices dropping in Maharashtra and a record wheat output estimate (115.4 million tonnes).
  • Wheat stocks in government godowns have risen to 4 million tonnes (compared to 9.7 million tonnes last year).
  • Food inflation has fallen to 75% in February, down from 10.87% in October.

Need to Remove Export and Stocking Restrictions

  • Onion exports still face a 20% duty, and wheat stock limits persist.
  • Government must act proactively to prevent price crashes due to overproduction.
  • Farmers suffer due to export restrictions, which are imposed quickly when prices rise but lifted too late when they fall.
  • Stable policies can prevent the cobweb cycle, where price fluctuations lead to alternating overproduction and shortages.

Agriculture Sector in India: Key Highlights:

Significance & Constitutional Aspects

  • Backbone of India’s economy, ensuring food security, employment, and economic growth.
  • One of the four engines of development in Union Budget 2025-26.
  • State Subject under Schedule VII; trade & commerce under the Concurrent List.
  • Article 48 mandates modernization of agriculture & animal husbandry.

Key Farmer-Centric Initiatives

  • PM-KISAN: ₹3.46 lakh crore disbursed.
  • PMFBY: ₹1.65 lakh crore in claims.
  • AIF: ₹52,738 crore for 87,500+ projects.
  • MSP Hike: Paddy ₹2,300/qtl, Wheat ₹2,425/qtl (2023-24).
  • e-NAM: 1,410 mandis integrated, 1.79 crore farmers registered.
  • Millets: Production up to 175.72 lakh tonnes (2023-24).

Union Budget 2025-26 Focus Areas

  • PM Dhan-Dhaanya Krishi Yojana: 100 districts, 1.7 crore farmers.
  • Mission Aatmanirbharta in Pulses: Focus on Tur, Urad, Masoor.
  • Vegetables & Fruits Program: Efficient production & processing.
  • Makhana Board in Bihar for value addition.
  • National Mission on High Yielding Seeds: 100+ seed varieties.
  • Fisheries: High Seas & Andaman-Lakshadweep focus.
  • Cotton Mission: 5-year plan for sustainable production.
  • KCC Credit: Loan limit ₹3 lakh → ₹5 lakh.
  • Urea Plant in Assam: 12.7 lakh MT capacity.