The Indian government on Friday, announced plans to procure unlimited quantities of maize and certain common pulses at their minimum support price (MSP) for the next five years. A senior government official, speaking on the condition of anonymity, revealed details of this initiative.
The procurement scheme targets farmers who transition from traditional crops such as wheat, rice, and sugarcane to alternative crops like maize and pulses. By incentivizing diversification, the government aims to mitigate the adverse environmental impact of water-intensive cultivation practices and improve soil health.
"Paddy and sugarcane are water-intensive crops, while growing wheat requires less water, but soil health has worsened due to uncontrolled use of fertilizers," the official explained, underscoring the urgency of encouraging crop diversification.
Under the assured procurement guarantee scheme, all farmers across all states will be eligible for procurement at MSP. However, the benefits of the scheme will be exclusively reserved for those farmers who transition to pulses and maize cultivation. Existing growers of these crops will not qualify for the scheme's benefits.
Farmers can avail themselves of the scheme through self-certification initially, with plans to develop a more robust tracking mechanism in the future, the official noted. The database of national crop insurance schemes will be leveraged to verify claims made by farmers under the crop diversification scheme, ensuring transparency and accountability.
India, accounting for nearly half of the world's consumption of pulses, witnessed a surge in imports of masur, tur (pigeon pea), and urad in 2023, totaling 2.9 million tonnes, an increase of 39.7% from the previous year. Anticipated lower production due to unseasonal rainfall and deficit rainfall in major growing states has prompted increased reliance on imports to meet domestic demand.
The government's focus on boosting maize production aligns with the rising demand for ethanol, a renewable fuel derived from maize.
With maize being a short-duration crop maturing in just 40 days, its increased cultivation is set to address the burgeoning demand for ethanol production, thereby contributing to India's renewable energy objectives.