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Disparity in Cereals Production and Consumption
Context:
The demand for cereals for direct household consumption is falling in India, but it is rising for use in processed foods, animal feed, and fuel.
More on News:
- India’s production of cereal grains has gone up over 1.5 times in the last two decades, according to the agriculture ministry.
- Despite high production, household consumption estimates remain considerably lower, projected at around 180 to 195 million tonnes annually.
- This disparity highlights a significant surplus in cereal availability beyond domestic consumption needs.
Trends of Cereals Production and consumption
- India crossed 300 million tonnes of cereals production for the first time.
- It increased, from 196.4 mt in 1999-2000 to 303.6 mt in 2022-23.
- However, the increase in production does not correspond proportionally to direct household consumption.
- National Sample Survey Office-Household Consumption Expenditure surveys ( (NSSO–HCES) report: Per person consumption reduced from 12.72 kg to 9.61 kg in rural and from 10.42 kg to 8.05 kg in urban India from 1999-2000 to 2022-23.
Reasons behind disparity in production and consumption of cereal:
- A substantial portion of the excess cereal production is exported, totaling 30.7 mt in 2022-23.
- Cereals are also used extensively in processed forms like bread, biscuits, and noodles, accounting for additional consumption.
- It is used for manufacturing animal feed, starch, and ethanol fuel, further utilizing surplus production.
- Significant quantities are procured by government agencies and stored, contributing to stock accumulation.
- Procurement exceeds total annual requirement for public distribution under National Food Security Act.
- Government policies, such as input subsidies and minimum support prices, have supported cereal production.
- However, there are concerns about the consistency between pricing policy and the realities of cereal demand.
- Regional preferences and cultural practices also influence cereal consumption.
- For example, in some parts of India, millet flours and idlis are popular breakfast options.
- Other challenges leading to disparity in production and consumption:
- Cereal output varies across India, some regions having surpluses while others face deficits,
- This leads to distribution challenges in storage, transportation, and distribution.
- Fragmented landholdings in certain areas hinder economies of scale in production, potentially reducing crop yields alongside traditional farming methods.
- Challenges like fluctuating weather patterns, inadequate irrigation, and limited access to modern farming techniques impact productivity.
- Cereal output varies across India, some regions having surpluses while others face deficits,
Implications for Foodgrain Policy:
- The discrepancy between production and consumption calls for a reassessment of pricing policies to align with actual demand realities.
- Price volatility in cereals, driven by irregular production, affects revenues and purchasing power for producers and consumers alike.
- Addressing these discrepancies is crucial to ensuring efficient utilisation of agricultural resources and maintaining food security.
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