India Grows More but Depends More: The Stark Truth Behind Food Imports

India Grows More but Depends More: The Stark Truth Behind Food Imports

KAKALI DAS

India is celebrating record harvests.

Wheat production has touched new highs, rice output is surging and horticulture fields are bursting with abundance. Procurement centres are overflowing with grain. Storage silos are packed.

At first glance this feels like a moment of triumph. A country that once struggled with shortages is now producing more food than ever before.

Naturally one might assume that if our farms are overflowing, our exports must also be flourishing. One might expect a booming trade surplus reflecting the strength of our agriculture. But the truth is the opposite. Even as production touches record levels, our food imports are rising faster than ever. The question then becomes unavoidable. How can a country produce more and still buy more from abroad. This is India’s agricultural paradox and it is a warning we can no longer afford to ignore.

Recent numbers tell a clear story. In just two years agricultural and allied imports have jumped sharply from about fifty three billion dollars to sixty three billion dollars. Exports have failed to keep pace. They dipped and then recovered slightly but have largely remained flat. As a result our agricultural trade surplus has shrunk from nineteen billion dollars to sixteen point three billion and then to fifteen billion dollars. This is not yet a national crisis but it is certainly not a comfortable direction for a country that has long relied on agriculture as a stabilising force.

So why is this happening. Why is India importing more even when domestic production is strong. The answer lies in the policies that guide our farmers. For decades our agricultural approach has prioritised one goal above everything else – Price stability. Minimum support prices, government procurement and subsidised fertilizers create certainty for farmers. They know rice and wheat will always have a guaranteed buyer at a guaranteed price. Naturally they continue choosing the safest and most predictable option.

This system has created a cycle in which the same crops dominate year after year. Rice. Wheat. Sugarcane. Meanwhile India itself has changed. Urban households today want a diverse plate. They consume more fruits, vegetables, nuts, proteins, processed foods and cocoa based products. Demand has diversified. Farming patterns have not. And when domestic demand evolves but domestic production does not keep up, imports fill the gap. Not because Indian farmers lack capability, but because policy incentives push them towards the old staples.

This is not the failure of farmers. It is the failure of a system designed for another era.

There is another habit that quietly feeds this dependence. Whenever the price of onions, tomatoes, pulses or edible oils rises the governments first response is almost always the same. Open the door for imports. Cut tariffs. Remove restrictions. Fast track shipments. This approach helps consumers in the short term and prevents sharp price spikes. But it comes with a long term cost that rarely enters public debate.

If imports can always rush in to bridge shortages, why would companies invest in contract farming. Why would retailers build strong relationships with farmers. Why would cold chain operators risk heavy investment. Why would food processors commit to building domestic supply chains. Imports become the quick fix that prevents the deeper structural work from taking place. Over time the entire system begins to rely on imports because they are easy while domestic capacity building remains hard.

Edible oils reflect this perfectly. India has both land and climate suitable for oilseed production, yet we remain one of the worlds largest importers. Cocoa tells the same story. Demand has risen sharply but domestic production lags far behind. Even in dairy a sector where India has global leadership imports rise the moment domestic supply tightens. Fertilizers too depend heavily on imported raw materials despite increasing domestic capability.

The pattern is clear. Imports grow not because India cannot produce these goods but because it is easier to import than to reform.

Some might argue that if imports meet our needs, there is no problem. But this misses the larger economic picture. For decades our agricultural trade surplus has served as a buffer for the entire economy. When services exports slow or manufacturing falters, agriculture has steadied our foreign exchange position. Many countries treat agriculture as a strategic economic tool. Brazil, Argentina and Thailand built global influence through agricultural strength. India has the same potential. But by failing to align production with market demand and by neglecting to build competitive supply chains, we allow this potential to slip away.

A shrinking agricultural surplus makes India more vulnerable to global price shocks. It increases the import bill. It adds pressure on the rupee. And most importantly it represents a massive lost opportunity. If we had encouraged diversification and competitiveness earlier, our agricultural surplus today could have been two or three times larger. It could have offset rising fuel import costs. It could have strengthened the currency. It could have created more fiscal room for development.

But we chose the path of comfort over competitiveness.

The encouraging truth is that this situation is not irreversible. It is not the product of weakness but the outcome of specific policy choices. And choices can be changed. If India wants an agricultural system that reflects its true potential, the incentives must shift.

We need subsidies that encourage diversification instead of locking farmers into the same crops forever. We need quality infrastructure such as sorting centres, grading labs and certification systems that meet world standards. Without this no amount of production will translate into export strength. Storage systems and cold chains must expand rapidly, especially for perishable foods where wastage is high. Tariff regimes must become more predictable. Industries cannot plan supply chains if import duties keep changing overnight. Procurement policies too must evolve. Farmers must have encouragement to grow oilseeds, pulses, vegetables and other high value crops that match India’s changing dietary needs.

The government has begun some efforts, especially around oilseed production and horticulture clusters. But these require consistency, patience and long term commitment. Quick fixes will not reverse decades of distortions.

The real challenge before India is not to produce more food. It is to produce the right food. It is to make farming not only safer but smarter. Farmers do not need more protection. They need fair incentives that reward quality, value and diversification. They need a system that sees them not as beneficiaries but as competitive producers in a growing global market.

India stands today at an important turning point. We have achieved record harvests but we are also importing record amounts of food. Our once dependable agricultural surplus is fading. This moment calls for clarity, not complacency. It calls for courage to rethink old policies that no longer serve us.

India does not lack agricultural strength. It only lacks agricultural alignment. If we correct our incentives and reward competitiveness our farmers can lead not only the country but global markets. The choice is ours. The future too can be ours if we choose wisely and act now.

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