Crop production targets ignore environmental concerns

The National Conference on Agriculture – Kharif campaign 2022 – concluded recently has not only set a rather ambitious national crop production targets but betrays the government’s mixed-up priorities.

There is a lack of appreciation of environmental concerns in fixing the crop production targets. This is starkly evident in the targets set for two major crops - rice and sugarcane.

Both rice and sugarcane are water-guzzling crops. By producing excessive quantities over the domestic market needs, the nation wastes water, a precious natural resource. The country’s water shortage is well documented.

One simplistic argument to support the higher production of these two commodities would be their export prospects. Our rice exports are about 10 million tonnes and sugar 6-7 million tonnes earning the valuable foreign exchange.

But often – not this year, though – sugar export is subsidised. This costs the exchequer money and invites the ire of other exporting countries who complain to the World Trade Organization.

Worse, by exporting large quantities of rice and sugar, we indirectly export water. From an environmental perspective, there is a case for reducing the area under paddy and sugarcane cultivation.      

Kharif rice and cane output

Rice production target for kharif 2022-23 is 112.0 million tonnes as compared with an estimated production of 109.5 million tonnes in kharif 2021-22. Paddy is usually planted on 40-42 million hectares in the kharif season.

The production target for sugarcane is 415 million tonnes for 2022-23, while an estimated production in the previous year was 414 million tonnes. Sugarcane is usually planted on 5.0 to 5.3 million hectares . In recent years, sugar production has been over 30 million tonnes per annum while our consumption is 26-27 million tonnes.    

Excess production and prices

The excess production weighs heavily on domestic sugar prices. To avoid industry pressurising the government on export subsidy, the cane area can be restricted to 5 million hectares at the maximum or even slightly lower.

NITI Aayog, too, had two years ago, argued favouring 300,000-hectare reduction in cane area. Business Line supported the idea with a recommendation to target low yield and water scarcity areas. . But, the NITI Aayog’s practical suggestion has had no effect on the Agriculture Ministry’s annual production plans.

Surplus production far above domestic demand forces us to liquidate the inventory in the export market. In the last two years, India has exported 6-7 million tonnes of sugar.

The export of non-basmati rice touched 10 million tonnes in 2020-21 and earned foreign exchange of around $3.5 billion.

The question s whether the environmental costs (often invisible but real) outweigh the benefit of export earnings. Tremendous ‘political will’ is necessary to address this issue and in favour of the environment.

(The author is a policy commentator and agribusiness specialist. Views are personal)

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