A NITI Aayog working group has recommended the Indian government reconsider its open-ended procurement policy for rice and wheat at minimum support prices (MSP). This suggestion is made to encourage farmers to switch to other crops like nutri-cereals, pulses, and edible oils, anticipating that the demand for these crops could outstrip production by 2047. The group's report highlights that the current procurement policy may deter diversification towards higher-value and riskier crops. To facilitate this shift, the group proposes limiting rice and wheat procurement to the needs of the country's food security and welfare programs. Additionally, it suggests compensating farmers through price deficiency schemes for any potential revenue loss from diversifying away from rice and wheat.
The working group, established by the Aayog in 2022 and led by PS Birthal, director of ICAR-NIAP, was tasked with analyzing trends in demand and supply for major food commodities and changing consumer preferences up to 2047. Among its other recommendations, the group calls for developing economically viable cropping patterns that align with resource endowments and significantly increasing investment in infrastructure for perishables to mitigate post-harvest losses and price volatility. It emphasizes promoting millet consumption, reducing edible oil intake for health reasons, and boosting pulse production to address the ongoing deficit in pulse supply compared to demand. The report predicts a continued shift in consumption patterns towards high-value food commodities due to rising per capita income and evolving lifestyles, underscoring the need for adaptation in agricultural practices.