Farmers Shift Focus to Corn, Oilseed Cultivation Declines

India witnessed a rise in kharif corn acreage this season, which has posed challenges for oilseed production. Farmers are shifting to corn due to better profitability, raising concerns about oilseed supply stability.

This year, kharif corn acreage rose to 8.395 million hectares, compared to 8.329 million hectares last year. In states like Madhya Pradesh and Maharashtra, corn acreage increased by 300,000–500,000 hectares, while oilseed cultivation saw a decline.

Policy Gaps Favor Corn Over Oilseeds

A former agriculture commissioner emphasized that paddy benefits from a Minimum Support Price (MSP)-backed procurement policy, whereas oilseeds lack such assurances. Programs like "ethanol from corn" have pushed corn prices higher, incentivizing farmers to switch crops.

Without a credible procurement policy, farmers will continue to prioritize crops offering better returns.

Soybean Acreage Drops in Key States

Key states experienced significant shifts in crop acreage this year:

• Madhya Pradesh: Corn acreage increased to 2.08 million hectares from 1.53 million hectares, while soybean acreage fell to 5.777 million hectares from 6.06 million hectares.
• Maharashtra: Corn cultivation expanded to 1.107 million hectares from 909,000 hectares, while soybean acreage declined to 5.052 million hectares from 5.115 million hectares.

Both states are critical for India’s soybean production.

Positive Trends for Oilseeds in Gujarat and Karnataka

Unlike Madhya Pradesh and Maharashtra, Gujarat and Karnataka reported encouraging results for oilseed production:

• Gujarat: Groundnut acreage rose to 1.895 million hectares, up from 1.635 million hectares, while corn acreage saw a slight increase to 305,000 hectares from 282,000 hectares.
• Karnataka: Oilseed cultivation climbed to 817,000 hectares from 728,000 hectares, while corn acreage dropped to 1.545 million hectares from 1.745 million hectares.

Farmers in Gujarat earned around $0.14 per kg for groundnut last year. However, recent mandi prices have dropped 18–20% below MSP, raising concerns over procurement effectiveness.

Procurement Data Highlights Supply Trends

Government procurement data indicates steady oilseed purchases:

• 197,000 tonnes of groundnut were procured as of December 12, with 151,000 tonnes sourced from Gujarat.
• 415,000 tonnes of soybean were procured across six states, including 217,000 tonnes from Madhya Pradesh and 109,000 tonnes from Maharashtra.

National Oilseeds Mission Targets Future Growth

The Union Cabinet has approved a budget of $1.22 billion over six years to boost oilseed production to 69.7 million tonnes by 2030-31, up from the current 39.67 million tonnes. Together with the National Mission on Edible Oils (Oil Palm), the initiative aims to increase domestic edible oil production to 25.45 million tonnes, meeting 72% of projected demand.

Conclusion

While Gujarat and Karnataka offer hope for oilseed cultivation, the rising preference for corn in Madhya Pradesh and Maharashtra highlights policy gaps. Without MSP-backed procurement and targeted farmer support, achieving the goals of the National Oilseeds Mission will remain a challenge.





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