Diverging Paths: Wheat Faces Production Woes While Rice Battles Surplus in India’s Cereal Landscape

(Source: Indian Express; Section: Explained; Page: 13)

Topic: GS3 – Agriculture

Context:

The article highlights the contrasting challenges of surplus in rice and production constraints in wheat, emphasizing the need for distinct policy approaches for each cereal.

 Analysis of News: 

 

Economists and policymakers often group wheat and rice together as part of a “cereal surplus” and “mono-cropping/lack of diversification” issue. However, the situations of these two cereals have diverged significantly, necessitating a nuanced approach to each.

Rice: A Surplus Problem

• Export Trends: India has seen a consistent increase in rice exports, with 21.21 million tonnes (mt) in 2021-22, 22.35 mt in 2022-23, and 16.36 mt in 2023-24.
• Stock Levels: Despite these exports, rice stocks in government godowns reached an all-time high of 45.48 mt on August 1, indicating a surplus issue.
• Policy Recommendations: There is a need to lift the ban on exports of white non-basmati rice, reduce the 20% duty on parboiled non-basmati rice, and remove the $950/tonne floor price on basmati shipments to manage excess stock.

Wheat: A Production Challenge

• Export Decline: Wheat exports have significantly decreased from 7.24 mt in 2021-22 to just 0.19 mt in 2023-24.
• Stock Levels: Central pool wheat stocks on August 1 were 26.81 mt, the lowest for this date in recent times, signaling production challenges.
• Geographical and Temporal Constraints: Wheat is more geographically and temporally constrained than rice, with production concentrated in fewer states and affected by climate change, leading to greater volatility.

Consumption Divergence

• Wheat: Consumption of wheat is rising, driven by processed foods like bread, biscuits, and other products made from refined flour (maida). This trend is fueled by increasing incomes and urbanization.
• Rice: Rice consumption has not seen similar growth in processed forms, and its consumption patterns remain more traditional.

Policy Implications

• Wheat: Given the production challenges and rising consumption, India may need to import wheat in the short term. Long-term strategies should focus on boosting yields and developing climate-smart varieties.
• Rice: The surplus in rice production requires policy adjustments to manage excess stock through exports.

Conclusion

• Rice and wheat, though often treated together, face distinct challenges and require separate strategies.
• Wheat’s production volatility contrasts with rice’s surplus, necessitating targeted policies for each to address their unique issues.

PYQ: What are the major factors responsible for making rice-wheat system a success? In spite of this success how has this system become bane in India? (UPSC CSE (M) GS-3 2020)

Practice Question:  Discuss the distinct challenges faced by wheat and rice production in India. How should policymakers address the divergent issues of wheat production volatility and rice surplus to ensure food security and economic stability? (250 words/15 m)