Executive Summary:
This document is the Indian government's response to questions in Lok Sabha regarding cereal production, imports, and food security. It addresses concerns about a widening cereal gap, procurement lapses, the impact of free trade agreements, and plans for public distribution. The response asserts India's self-sufficiency in major cereals and outlines measures to maintain food security while supporting farmers. Data includes projections for 2024-25 and storage capacity as of July 1, 2025.
Key Points / Main Content:
* **Cereal Production and Trade:**
* India maintains self-sufficiency in rice and wheat, remaining a net exporter.
* Domestic cereal production increased from 234.87 million tonnes in 2014-15 to over 308.05 million tonnes in 2023-24.
* Cereal production is projected to reach 328.72 million tonnes in 2024-25.
* Cereal exports are projected at 20.90 million tonnes for 2024-25, with imports estimated at 1.36 million tonnes.
* The marginal increase in imports is primarily due to higher maize imports driven by factors other than food security.
* **Procurement, Storage, and Supply Chain Management:**
* The Department of Food Public Distribution manages procurement, storage, and supply chain through the Food Corporation of India (FCI).
* FCI continuously assesses and monitors storage capacity, creating/hiring capacities through various schemes, including:
1. Private Entrepreneurs Guarantee PEG Scheme
2. Central Sector Scheme CSS 2017-25 (culminated on 31.03.2025)
3. Construction of Silos under Public Private Partnership PPP mode
4. Hiring of godown from Central Warehousing Corporation/State Warehousing Corporations SWCs/State Agencies
5. Hiring of godown through Private Warehousing Scheme PWS.
6. Creation of godowns under Asset Monetization
7. Covered and Plinth CAP Hiring Scheme 2025
8. Modified PEG scheme for North Eastern Hilly states with longer guarantee period of 15 years
* Total covered storage capacity with FCI and State agencies as of July 1, 2025, is 821.36 Lakh MT.
* **Price Stability and Food Security:**
* The government balances export/import decisions to protect farmers and consumers while maintaining buffer stocks.
* Domestic food security is prioritized, even with trade commitments under FTAs and WTO obligations.
* Key steps to ensure domestic prioritization and protect farmers include:
* One Nation, One Ration Card (ONORC) for nationwide access to food grains.
* Maintaining adequate buffer stocks with FCI.
* Supporting farmers through Minimum Support Price (MSP) and procurement schemes.
* Promoting crop diversification to include millets and maize.
* Regular monitoring of domestic availability to balance farmers' and consumers' interests and ensure price stability
Impact Analysis:
* **Farmers:**
* *Impact:* Supported through MSP, procurement schemes, and crop diversification initiatives to protect from market volatility.
* *Action Required:* Participate in government schemes and consider diversifying crops based on market demand and government incentives.
* **Consumers (especially lower-income populations):**
* *Impact:* Protected through the Public Distribution System (PDS), ONORC, and measures to maintain price stability.
* *Action Required:* Utilize ONORC for seamless access to food grains across states.
* **Food Corporation of India (FCI) and State Agencies:**
* *Impact:* Responsible for procurement, storage, and supply chain management of food grains.
* *Action Required:* Continuously assess and monitor storage capacity, creating/hiring capacities through various schemes.
* **Department of Food and Public Distribution:**
* *Impact:* Oversees procurement, storage, and supply chain management of Central Pool stock.
* *Action Required:* Ensure efficient management of food grain procurement, storage, and distribution through implementing agencies.
Key Entities Referenced
Ministry of Agriculture & Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Shri Sudama Prasad: A member of Lok Sabha who raised a question about cereal production and import.
Shri Ramnath Thakur: The Minister of State for Agriculture and Farmers Welfare who provided the answer to the question.
Atmanirbhar Bharat: A vision of the Government of India focused on self-reliance, including in the agricultural sector.
Food Corporation of India (FCI): The implementing agency responsible for procurement, storage, and supply chain management of Central Pool stock.
One Nation, One Ration Card (ONORC): An initiative for seamless access to food grains across states under the Public Distribution System.
Minimum Support Price (MSP): A price support mechanism to protect farmers from market volatility.
Public Distribution System (PDS): A government-run system for distributing food and other essential items to low-income populations at subsidized prices.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 435
TO BE ANSWERED ON THE 22ND JULY 2025
PRODUCTION AND IMPORT OF CEREALS
435. SHRI SUDAMA PRASAD:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) whether the Government has taken cognisance of the widening ‘cereal gap’, wherein
India is simultaneously reporting record domestic production of cereals while doubling its
cereal imports in the last decade, as highlighted by Down To Earth dated 3/01/2025;
(b) whether this contradiction points to serious lapses in procurement, storage and supply
chain management and whether any audit has been conducted on post-harvest losses and
export–import policy distortions;
(c) the extent to which free trade agreements and cereal exports have disrupted domestic
price stability and compromised food security for lower-income populations;
(d) whether the Government plans to revamp its approach to public distribution, ensure
domestic prioritisation over exports and protect farmers from market volatility; and
(e) if not, the rationale for continuing with a policy regime that undermines self-sufficiency
in essential grains?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a): Government of India continues to maintain self-sufficiency in major cereals,
particularly rice and wheat, which have seen no significant increase in import volumes
over the past decade. In fact, India remains a net exporter of both rice and wheat in
recent years.Domestic cereal production has remained strong, with total output rising from
approximately 234.87 million tonnes in 2014–15 to over 308.05 million tonnes in 2023–
24. This includes record production levels of both rice and wheat. According to the
Third Advance Estimates, cereal production is expected to reach an all-time high of
328.72 million tonnes in 2024–25. In the same fiscal year (2024–25), cereal exports
are projected at 20.90 million tonnes, underscoring the country's surplus and robust
export capacity. In contrast, cereal imports are estimated at just 1.36 million tonnes—
negligible in comparison to overall domestic production and exports. The marginal
increase in cereal imports during 2024–25 is primarily due to higher maize imports,
which stand at approximately 0.97 million metric tonnes. This rise is driven by factors
other than food security.
The Government’s cereal policies are aligned with the dual objectives of food
security and agricultural diversification under the broader vision of Atmanirbhar Bharat.
The Government remains committed to maintaining self-sufficiency in essential
cereals while responsibly managing demand from emerging sectors like biofuels.
Continuous review and course correction are integral to ensuring procurement
efficiency, storage adequacy, and equitable food access across the country.
(b): The Department of Food & Public Distribution takes care of procurement,
storage and supply chain management of Central Pool stock through the implementing
agency, Food Corporation of India (FCI).
The requirement of Storage capacity in FCI depends upon the level of procurement,
requirement of buffer norms and public distribution system operations for Rice and
Wheat mainly. FCI continuously assesses and monitors the storage capacity and
based on the storage gap assessment, storage capacities are created/hired through
following schemes: -
1. Private Entrepreneurs Guarantee (PEG) Scheme
2. Central Sector Scheme (CSS) 2017-25 (culminated on 31.03.2025)
3. Construction of Silos under Public Private Partnership (PPP) mode
4. Hiring of godown from Central Warehousing Corporation/State Warehousing
Corporations (SWCs)/State Agencies
5. Hiring of godown through Private Warehousing Scheme (PWS).
6. Creation of godowns under Asset Monetization
7. Covered and Plinth (CAP) Hiring Scheme -2025
8. Modified PEG scheme for North Eastern & Hilly states with longer guarantee
period of 15 yearsAs on 01.07.2025, total Covered Storage Capacity available with FCI and State
agencies throughout the country for storage of Central Pool foodgrain stock is 821.36
Lakh MT.
(c) to (e): The Government carefully calibrates export and import decisions for
cereals to balance farmers’ interests, consumer affordability, and buffer stock norms.
While India has trade commitments under various FTAs and WTO obligations, these
do not override the priority of domestic food security.
Government continues to review and strengthen the PDS and related mechanisms
and ensure domestic prioritisation while protecting farmers from market volatility. Key
steps include:
One Nation, One Ration Card (ONORC) for seamless access to food grains
across states.
Maintaining adequate buffer stocks of rice and wheat with FCI to ensure price
stability.
Supporting farmers through Minimum Support Price (MSP), procurement under
Price Support Schemes and Price Deficiency Payment Scheme under PM-
AASHA, and expanding coverage to include coarse cereals in specific regions.
Promoting crop diversification to encourage millets and maize in anticipation of
rising industrial demand.
Domestic availability of essential agricultural commodities is regularly monitored to
calibrate export and import measures to balance farmers & consumers interest and to
ensure price stability.
*****