India’s Import Burden: Rising Costs of Pulses and Edible Oils

India’s pulse and edible oil imports hit record levels in 2024–25, driving domestic prices below MSP and raising serious concerns for farmer income and self-reliance.

Pulse and Oil Imports

Pulse and Oil Imports Latest News

  • Pulses and oilseed farmers across India face a persistent crisis due to the lack of systematic government procurement at Minimum Support Prices (MSP)
  • Unlike rice and wheat, which benefit from robust public procurement, crops like moong, chana, masoor, and soyabean are often sold in open markets at rates well below their MSPs.
  • This disparity leaves farmers vulnerable to market fluctuations, forcing them to sell at loss-making prices, despite using high-yielding, recommended crop varieties. 
  • In regions with black cotton soil, where pulses and oilseeds are naturally suited, farmers have limited cropping options, making them heavily dependent on these undervalued crops.
  • Despite poor returns, many continue planting these crops due to the absence of viable alternatives, reflecting a systemic policy gap in supporting India’s pulse and oilseed producers.

Record Pulses Imports: A Setback for Domestic Growers

  • All-Time High Imports in 2024-25
    • India imported 7.3 million tonnes (mt) of pulses worth $5.5 billion in 2024–25, surpassing the previous record of 6.6 mt ($4.2 billion) in 2016–17. 
    • This marks a significant jump from the average 2.6 mt ($1.7 billion) imported annually between 2017–18 and 2022–23.
  • Past Gains in Self-Sufficiency Reversed
    • India had achieved relative self-sufficiency in pulses with output rising to 27.3 mt in 2021–22 and 26.1 mt in 2022–23, thanks to high-yield, short-duration varieties of chana and moong. 
    • These gains were undone by an El Niño-induced drought in 2023–24, which reduced production to 24.2 mt, recovering only slightly to 25.2 mt in 2024–25.
  • Duty Cuts Trigger Import Surge
    • With retail inflation in pulses hitting double digits by mid-2023, the government slashed import duties, prompting a surge in imports.
  • Inflation Falls, Farmers Hit
    • The import surge cooled CPI inflation in pulses, which dropped from 3.8% in Dec 2024 to -8.2% by May 2025. 
    • However, this led to market prices falling below MSPs.

India’s Vegetable Oil Crisis: Rising Imports and Farmer Distress

  • Soaring Import Dependence
    • Over the past 11 years, India’s vegetable oil imports have doubled—from 7.9 million tonnes (mt) in 2013–14 to 16.4 mt in 2024–25. 
    • In value terms, imports rose from $7.2 billion to $20.8 billion, driven partly by the Russia-Ukraine war’s supply disruptions.
  • Heavy Reliance on Imported Oils
    • In 2024–25, India imported:
      • 7.9 mt of palm oil (Indonesia, Malaysia)
      • 4.8 mt of soyabean oil (Argentina, Brazil)
      • 3.5 mt of sunflower oil (Russia, Ukraine, Argentina)
    • Meanwhile, domestic oil production (including cottonseed, rice bran, maize) remains stagnant at ~10 mt, resulting in an import dependency of over 60%.
  • Inflation and Duty Cuts
    • With vegetable oil inflation at 17.9% in May 2025, the government slashed basic customs duty on crude palm, soyabean, and sunflower oil from 20% to 10%, reducing the total import tariff from 27.5% to 16.5%.
  • Global Projections and Market Flooding
    • The USDA expects global vegetable oil production to hit 235 mt in 2025–26, led by palm (80.7 mt) and soyabean (70.8 mt). 
    • Lower Indian tariffs may lead to even higher imports, including from the U.S., per a USDA report.
  • Impact on Indian Farmers
    • The Soyabean Processors Association of India has warned that the duty cut will flood Indian markets with cheaper oils, hurting local prices. 
    • This may discourage farmers from sowing oilseeds, especially soyabean, in the upcoming kharif season, affecting domestic production further.

Source: IE

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Pulse and Oil Imports FAQs

Q1. Why are Indian pulse and oilseed farmers struggling?+

Q2. How high were India’s pulse imports in 2024–25? +

Q3. What triggered the surge in pulse imports?+

Q4. What is India’s vegetable oil import dependency?+

Q5. How are duty cuts affecting Indian oilseed farmers?+

Tags: mains articles pulse and oil imports upsc current affairs upsc mains current affairs

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