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Stay Current on Political News—The US Future > Blog > Business > Will the new paddy reform plan work?
Business

Will the new paddy reform plan work?

Sarah Mitchell
Sarah Mitchell
Published May 8, 2025
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Paddy remains a preferred crop for millions of farmers, not only due to the tradition or water availability, but also to the almost true acquisition under MSP operations

Paddy remains a preferred crop for millions of farmers, not only due to the tradition or water availability, but also to the almost true acquisition under MSP operations

After launching the first varieties of rice edited in the world’s genome at the meeting organized by the Indian Agricultural Research Council on May 4, 2025, the Minister of Agriculture of the Union announced a new plan “-5, +10” that signed a change of bold policy in rice; Reduce 5 million hectares of area under rice cultivation and increase its production in 10 million tons from the removal area. The reason is to use the land of rice to cultivate oleaginous seeds and legumes, in which India has remained dependent on importation. In theory, it promises a mutual benefit; Greater productivity, conservation of resources and reduced dependence on expensive imports. However, the viability of this strategy is based on a crucial question: will farmers change to crops that currently sacrifice low economic yields?

India is the largest world importer of edible oils. In 2022-23, the country imported around 157.5 Lakh tons of edible oils, spending more than ₹ 1.67 Lakh Crore. The pulses also tell a similar story. Despite being the largest producer and consumer, India continues to imitate 2.5 million tons of pulses annually. The government’s plan aims to address this chronic dependence. But the solution goes beyond just making land. Farmers will only make the change if the alternative crops promise profitability with Paddy.

Rice syndrome

Paddy remains a preferred crop for millions of farmers, not only due to the tradition or water availability, but also due to almost safe acquisitions under minimum support price operations (MSP). About 40 percent of India’s rice is acquired by government agencies, as a special states such as Punjab, Haryana, Chhattisgarh and Telangana, which guarantees reliable income for farmers. In contrast, despite being on the MSP list, pulses and oleaginous seeds suffer from insignificant acquisitions.

In 2023-24, while more than 55 million tons or rice were acquired, the acquisition of MSP for pulses and oleaginous seeds barely played some Lakh tons. In many markets, acquisition, delayed or simply absent and prices are below MSP. Therefore, farmers have the full load or market risk. Even when prices rise above MSP, as with Chana O Occasionally mustard, volatility discourages long -term planning or investment.

The minister’s expectation that greater productivity in Paddy will compensate for a reduced area is technically solid. The average productivity of India’s rice is around 2.8 tons per hectare, Waseas countries such as China average more than 4 tons. Increasing productivity to 3.5 tons/ha in 35 million hectares of rice could produce the desired impulse of 10 million tons. But while technological solutions can help meet the rice objectives, the greatest objectives of the policy of cutting the financial guarantee required by diversity for farmers.

You need insured return

Without assured acquisitions and fair returns, it is unlikely that the change to oleaginous legumes and seeds will be adopted widely. In the east of India, where water tables remain high and rice cultivation is less efficient, politics could have some influence. But in large parts of the Indo-Gnetic plains and the southern states, it is unlikely that farmers play with low margin crops.

Fixing this will require not only the expansion of the acquisition, but also deeper reforms. The PM-AASHA scheme of the Center, which includes the Price Support Scheme (PSS), the Price Deficiency Payment Scheme (PDPS) and Private Acquisition Initiatives, was a step in the right direction. However, its implementation has an inconsistent and sub -financed bone. In many states, acquisition agencies lack the ability to buy on scale and delays in Payment Farmer Trust. For any crop to compete with rice, not only must have declared MSP but also a market acquisition and linking system. The private sector must also be attracted by incentives to buy pulses and oleaginous seeds directly from MSP farmers. At the same time, investment in storage, processing and logistics for non -cereal crops should increase. A consistent national policy on the diversification of crops linked to climate resilience and nutritional security is exposed.

To conclude, in principle, the vision “-5, +10” is bold and timely. India cannot afford to continue its current agriculture focused on cereals indefinitely, which exhausts aquifers, balloon import invoices and increases nutritional imbalances.

But farmers will not change to oleaginous seeds and pulses simply because the government pursues them. They will only change when the new route is more rewarding or at least equally safe as the previous one. Unless the acquisition mechanisms are set, the “-5” can happen, but the objectives “+10” and diversity can continue to be difficult to achieve.

The writer is former full -time member (official), agricultural costs and prices, New Delhi. The opinions expressed are personal

Posted on May 8, 2025

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