• UGI USER
  • Nov 27, 2023
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SUPPLY-DEMAND GAP FOR PULSES, OILSEEDS, FRUIT TO PERSIST: NABARD REPORT

Why in the News?

  • A research report by NABARD and the Indian Council for Research on International Economic Relations predicts a persistent or widening supply-demand gap for pulses, oilseeds, and fruits in India over the next seven years.
Source: NABARD and ICRIER

Food Deficits and Reliance on Imports

  • The report emphasizes that output shortfalls compared to demand for key protein sources and edible oils lead to food deficits.
  • The reliance on imports to meet demand raises the long-term food import bill.

Commodities Facing Supply-Demand Gap

  • Oilseeds, pulses, and fruits are expected to experience a supply and demand gap in the coming years.
  • The report calls for increased production and productivity to meet the growing demand for these commodities.

Changing Consumption Patterns

  • As per capita incomes rise, the consumption basket shifts towards nutritious and high-valued commodities, including fruits and vegetables.
  • Demand growth for non-cereal and high-valued commodities is expected to surpass population

growth and cereal commodities’ growth.

Concerns Over Oilseeds Deficit

  • The deficit of oilseeds in the food balance sheet in 2030 is concerning, especially with high edible oil imports.
  • The report suggests technological breakthroughs or area expansion as potential solutions to address the oilseeds deficit.

Policy Recommendations

  • Calls for policy attention to balance domestic production and absorption of commodities.
  • Advocates diversification towards high-value commodities, requiring significant investments in market infrastructure, processing, and storage facilities.

Import Duty and Self-Reliance in Water-Intensive Crops

  • Recommends raising import duty when crude palm oil prices fall below a specified threshold to protect Indian producers.
  • Highlights that achieving self-reliance in water-intensive and long-gestation crops may not be a sustainable goal.

Projection Based on Growth Scenarios

  • Projected demand for farm produce up to 2030-31 based on alternative growth scenarios considering per capita income growth.
  • Supply-side estimations align with trends observed in the last 10 or 15 years, emphasizing the need for policy attention and infrastructure development.