India to buy oilseeds and pulses directly from farmers

Starting October 2015, in addition to its existing purchases of wheat and rice, India plans to buy oilseeds and pulses directly from farmers. The measure aims to boost domestic production (price support and guaranteed purchases) and to reduce imports leading the country towards self-sufficiency. India is the world’s biggest consumer of edible oils however, production of pulses and oilseeds do not meet consumption requirements and the gap is covered by imports. The state-run Food Corporation of India (FCI) has accumulated large stocks of rice and wheat using Minimum Support Prices and intends now to support production for oilseeds and pulses using this measure.