India Presses Toward Food Self Sufficiency

VANCOUVER - Jan 2/15 - SNS -- India's government is pressing toward greater self sufficiency in food production in more ways than programs targeting farmers.

The country is also trying to increase domestic food processing and manufacturing in an effort to help reduce food losses in storage and in bulk markets. In the case of pulses, India believes between 4.3% and 6.1% of the crop is lost each year, compared to between 3.9% and 6% of cereal grains; 2.8% to 10.1% of the oilseed harvest; and up to 18% of the fruit and vegetable harvest.

Import duties and regulatory burdens have had a major impact on development of India's domestic food processing and manufacturing sector. In the case of pulses, there is continual uncertainty about whether the duty free status will be extended when the government unveils its budget for each fiscal year.

In September, import duties were left at zero through March 31 for all pulses except chickpeas. Despite last month's pressure from the Agriculture Department to impose a 10% import duty on chickpeas, the duty exemption was extended to March 31.

The need to reduce food losses has been underscored by this year's problems seeding crops. Last summer's kharif season pulse crop was smaller than hoped and this winter's rabi crop will also fail to meet government targets.