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

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

Pulse and Oil Imports FAQs

Q1: Why are Indian pulse and oilseed farmers struggling?

Ans: Lack of MSP procurement forces them to sell below cost, despite using high-yield varieties and facing market instability.

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

Ans: India imported 7.3 million tonnes of pulses worth $5.5 billion, the highest in its trade history so far.

Q3: What triggered the surge in pulse imports?

Ans: El Niño-induced drought and high retail inflation led to duty cuts, prompting a spike in cheaper foreign imports.

Q4: What is India’s vegetable oil import dependency?

Ans: India imports over 60% of its edible oil needs, with 16.4 million tonnes brought in during 2024–25 alone.

Q5: How are duty cuts affecting Indian oilseed farmers?

Ans: Lower duties may flood markets with cheap oils, discouraging domestic cultivation and reducing incentives to sow oilseeds.

India’s Green India Mission Revised: Forest Revival and Climate Goals Aligned

Revised Green India Mission

Revised Green India Mission Latest News

  • The Centre released a revised roadmap for the National Mission for Green India (GIM).
  • The updated plan emphasizes not just increasing and restoring forest and green cover, but also focuses on ecological restoration in critical regions such as the Aravalli ranges, Western Ghats, Himalayas, and mangroves.
  • As a key part of India’s climate action strategy, the revised GIM will also address land degradation and desertification, expanding its role in building environmental resilience.

Achievements of the Green India Mission (GIM)

  • Background
    • Launched in 2014 under the National Action Plan on Climate Change (NAPCC), the Green India Mission aims to:
      • Increase forest and tree cover on 5 million hectares
      • Improve the quality of forest cover on another 5 million hectares
      • Restore degraded ecosystems and enhance livelihoods of forest-dependent communities
  • Afforestation Progress
    • From 2015-16 to 2020-21, the mission supported tree plantation and afforestation across 11.22 million hectares through various central and state schemes.
  • Funding and Utilisation
    • Between 2019-20 and 2023-24, the Centre allocated ₹624.71 crore to 18 states for GIM-related interventions, of which ₹575.55 crore has been utilised.
  • Targeted Implementation
    • GIM activities are prioritized in states based on:
      • Ecological vulnerability
      • Carbon sequestration potential
      • Forest and land degradation levels
      • Restoration potential

Revised Green India Mission: Key Highlights

  • Need for Revision
    • The Green India Mission (GIM) roadmap has been revised based on:
      • Ground-level climate impacts
      • Feedback from implementing partner states
      • Recommendations from scientific institutions
      • The updated plan adopts a region-specific, ecologically tailored approach.
  • Focus on Vulnerable Landscapes
    • The revised mission prioritizes restoration and saturation of vulnerable landscapes, including:
      • Aravalli ranges
      • Western Ghats
      • Indian Himalayas
      • Mangrove ecosystems
    • Best practices will be adapted to local ecological conditions for effective restoration.
  • Integration with Aravalli Green Wall Project
    • GIM will align with the Centre’s Aravalli Green Wall Project to:
      • Combat degradation and desertification
      • Close 12 ecological gaps contributing to dust storms in Delhi-NCR and Punjab
      • Initially restore 8 lakh hectares across 29 districts and 4 states
      • Use native plant species, restore grasslands, forests, and water systems
    • Estimated cost: ₹16,053 crore
    • Aim: Create a 5-km buffer zone covering 6.45 million hectares
  • Action in the Western Ghats
    • In the Western Ghats, GIM will focus on: Afforestation efforts; Groundwater recharge; Eco-restoration of abandoned mining zones.
    • This is in response to threats from deforestation, degradation, and illegal mining.
  • The revised roadmap reflects a strategic, region-sensitive approach to ecological restoration and climate resilience.

Revised Green India Mission: Strategy to Combat Land Degradation and Desertification

  • Scale of the Challenge
    • According to ISRO’s Desertification and Land Degradation Atlas, about 97.85 million hectares (one-third of India’s land) faced degradation in 2018–19.
  • National Climate Commitment
    • India has pledged to:
      • Create an additional carbon sink of 2.5–3 billion tonnes of CO₂ by 2030 through increased forest and tree cover
      • Restore 26 million hectares of degraded land by 2030 under its international climate commitments (UNFCCC)
  • Role of Natural Ecosystems
    • Natural carbon sinks—forests, wetlands, grasslands, and mountain ecologies—will help:
      • Absorb greenhouse gas emissions
      • Act as natural buffers against the impacts of climate change
  • Contributions So Far
    • Between 2005 and 2021, India created an additional carbon sink of 2.29 billion tonnes of CO₂ equivalent, as per a statement in the Lok Sabha.
  • Focus on Restoring Open Forests
    • The revised GIM identifies impaired open forests as key areas for restoration:
      • Cost-effective and high-impact for carbon sequestration
      • Forest Survey of India (FSI) estimates this strategy alone could sequester 1.89 billion tonnes of CO₂ across 15 million hectares.
  • Target for Expanded Tree Cover
    • By integrating ongoing schemes and boosting afforestation:
      • GIM could expand forest and tree cover to 24.7 million hectares
      • This could generate a carbon sink of 3.39 billion tonnes CO₂ by 2030, exceeding India’s climate targets
  • In essence, the revised GIM aligns ecological restoration with India’s climate goals, making forests a cornerstone in the fight against land degradation and global warming.

Source: IE | IE

Revised Green India Mission FAQs

Q1: What is the Revised Green India Mission?

Ans: A climate initiative to restore forests, fight land degradation, and build resilience in ecologically vulnerable areas like the Aravallis and Himalayas.

Q2: Why was the Green India Mission updated?

Ans: To reflect ground-level climate impacts and integrate region-specific restoration based on ecological vulnerabilities and feedback from states and experts.

Q3: What is the Aravalli Green Wall Project?

Ans: A ₹16,053 crore project under GIM to restore 8 lakh hectares and prevent desertification across the Aravalli landscape.

Q4: How much forest area has GIM covered so far?

Ans: Between 2015–21, GIM supported afforestation over 11.22 million hectares through central and state programs.

Q5: What are India’s 2030 restoration goals under GIM?

Ans: Restore 26 million hectares of degraded land and create 2.5–3 billion tonnes CO₂ sink via expanded tree and forest cover.

India’s Green Hydrogen Mission: Domestic Push Gains Momentum Amidst Weak Export Outlook

India Green Hydrogen Mission

Green Hydrogen Sector Latest News

  • Stakeholders in India’s emerging green hydrogen sector remain optimistic that the alternative fuel is poised to play a significant role in the country’s future energy landscape.

Domestic Push to Green Hydrogen Development

  • India's green hydrogen sector is at a pivotal juncture. With global demand faltering due to geopolitical tensions and uncertain international policy environments, India has turned its attention inward, focusing on domestic demand creation, infrastructure, and policy support. 
  • The government and industry remain confident in the long-term prospects of green hydrogen, recognising its potential role in decarbonising key sectors like fertilisers, steel, and shipping.

National Green Hydrogen Mission and Strategic Interventions

  • Launched in 2023, the National Green Hydrogen Mission is India’s flagship initiative to position the country as a global hub for green hydrogen production, usage, and export. 
  • Backed by an outlay of Rs 19,744 crore, the mission aims to develop 5 million metric tonnes (MMT) of green hydrogen production capacity by 2030. 
    • It also includes provisions for the domestic manufacture of electrolysers under the SIGHT (Strategic Interventions for Green Hydrogen Transition) programme.
  • To ensure integrity and transparency, the Ministry of New and Renewable Energy (MNRE) introduced a measurement and certification framework in April 2025, establishing standards to verify green hydrogen at production sites.

Global Headwinds Affect Export Demand

  • Despite significant investments and plans for export-oriented projects like ReNew’s green ammonia facility in Odisha, India's export aspirations face severe constraints. 
  • At the heart of the slowdown is the weakening of global demand, a consequence of both geopolitical instability and policy uncertainty in key markets like the US and EU.
  • MNRE highlighted that lack of market visibility and setbacks to US policies such as the Inflation Reduction Act (IRA), now threatened by a rollback proposal called the “Big Beautiful Bill” under consideration by the US Senate, have undermined investor confidence and planning in global clean fuel transitions.
  • Additionally, tenders floated by European agencies such as Germany’s Hintco (under the H2Global Foundation) failed to attract sufficient industry participation, compounding the export sluggishness.

Efforts to Secure Global Access

  • To address logistical and trade-related barriers, India is engaging with major European ports, including Rotterdam and Antwerp, to streamline future green hydrogen shipments. 
  • At the policy level, free trade agreement (FTA) discussions with Europe now include proposals to reduce import duties on Indian green hydrogen and derivatives.
  • Nonetheless, the short-term outlook for exports remains bleak, pushing stakeholders to explore alternative paths for sectoral growth.

Domestic Demand as a Growth Driver

  • In response, the Indian government is aggressively working to build a robust domestic market for green hydrogen. 
  • A recent tender for the supply of 8 lakh tonnes of green hydrogen received full bids, demonstrating rising interest among Indian enterprises. 
  • Additionally, the Solar Energy Corporation of India (SECI) is managing another tender for 7 lakh tonnes, particularly aimed at the fertiliser industry.
  • To further ensure offtake, pilot initiatives are being rolled out in sectors like transportation, steel, and shipping. Hydrogen fuel cell buses are currently being tested in five cities, including Ladakh, to examine real-world performance.
  • Industry voices have argued that domestic mandates may be necessary to truly scale adoption, for example, making it mandatory for fertiliser manufacturers to source a portion of their ammonia from green hydrogen sources.

Cost Competitiveness and Commercial Viability

  • The greatest hurdle to mainstream adoption remains cost competitiveness
  • Currently, green hydrogen costs $4-$5 per kg, compared to $2.3-$2.5 per kg for grey hydrogen, which is produced using fossil fuels. 
  • These cost dynamics mean that, unlike renewables today, green hydrogen is not yet commercially viable without policy mandates or incentives.
  • A new report by CII, Bain & Company, and RMI attributes this high cost to immature supply chains, high financing costs, and lack of scale. It recommends incremental strategies to boost demand, including:
    • Blending green hydrogen into grey hydrogen or piped natural gas networks.
    • Encouraging its use in niche sectors such as ceramics, chemicals, and glass.
    • Leveraging public procurement, particularly for green steel, to boost scale and lower costs.

Future Outlook: Balancing Export Aspirations and Domestic Realities

  • India’s long-term vision for green hydrogen remains ambitious and well-supported. 
  • However, present challenges suggest a need to rebalance expectations, shifting emphasis from export-oriented growth to domestic market creation and infrastructure building
  • If successful, India could replicate its renewables success story in this domain too, gradually achieving cost parity and becoming a leader in global green hydrogen trade.

Green Hydrogen Sector FAQs

Q1: What is the National Green Hydrogen Mission?

Ans: It is India’s flagship scheme launched in 2023 to promote domestic production, usage, and export of green hydrogen with a target of 5 MMT capacity by 2030.

Q2: Why is India facing challenges in green hydrogen exports?

Ans: Export demand has weakened due to geopolitical instability and policy uncertainty in key markets like the US and EU.

Q3: What measures is the Indian government taking to boost domestic demand?

Ans: India is issuing large-scale tenders, running pilot projects, and considering domestic mandates for green hydrogen adoption.

Q4: Why is green hydrogen not yet commercially viable?

Ans: It is significantly more expensive than grey hydrogen due to high production and infrastructure costs.

Q5: How is green hydrogen used across sectors?

Ans: Green hydrogen is used to produce green ammonia, which serves as fertilizer and fuel, and has applications in shipping, steel, and energy sectors.

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