Food and fertilizer subsidies should be climate-adapted and aimed better

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₹10 lakh for a 50-acre plot. It has spurred crop diversification via a rice-fallow management approach, wherein farmers cultivate short-duration pulses or nitrogen-fixing crops after their rice harvest. This approach has proven both eco-friendly and economically viable.

Channel food subsidies to millets: India’s food subsidy bill, at roughly 1% of GDP, has been around ₹2 trillion, a trend seen since 2020 . A significant portion of this subsidy bill stems from the variance between the minimum support prices (MSPs) and the central issue prices (CIPs) of grains procured and distributed. MSPs for wheat and rice have historically witnessed steady increases.

With CIPs remaining relatively stagnant, this variance has contributed to cost escalation. Our ever-increasing food subsidy bill was even raised as a concern by the Standing Committee on Food, Consumer Affairs and Public Distribution in 2017. The government’s disproportionate emphasis on promoting wheat and rice through high MSPs has incentivized farmers to opt for environmentally unsustainable farming practices like mono-cropping.

In 2023, designated as the International Year of Millets, the spotlight was on the exceptional nutritional properties and unique agronomic characteristics of millets. We have an opportunity to direct our food subsidies to this more nutritious and less carbon-intensive alternative. Moreover, promoting millets promises to foster social equity, as Tribal communities and women farmers are likely to be key beneficiaries.

Additionally, it can catalyse a transition towards a circular economy. Hence, we should explore a high-MSP regime for millets instead of rice and wheat. In conclusion: While the government grapples with the challenge of striking a