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.