Indian agriculture: balancing food security and trade

Amid global shocks, including the pandemic, climate disruptions, and the conflict between Russia and Ukraine, food has become an instrument of national security. India maintains the world's largest food security system: the National Food Security Act (NFSA) guarantees subsidized grain to approximately 800 million citizens. At the same time, foreign trade protection measures, such as restrictions on the export of wheat and non-basmati rice, are adopted to curb domestic inflation, but create unpredictability for international markets.

The financial burden of maintaining large buffer stocks limits investment in agricultural research, the development of climate-resilient cultivars, and post-harvest handling infrastructure. Furthermore, the focus of state support on resource-intensive crops, such as rice and wheat through the Minimum Support Price (MSP) system, has led to the depletion of groundwater reserves in major growing regions.

Disagreements over public procurement programs and price support mechanisms arise in the World Trade Organization (WTO), where Western countries point to market distortion. India continues to rely on the WTO "peace clause," defending the priority of food security and the livelihoods of the rural population.

To achieve a balance between sovereignty and stable participation in international trade, it is proposed to diversify incentives for farmers in favor of climate-resilient crops, such as millet, grain legumes, and horticulture. It is also planned to introduce transparent export-import mechanisms instead of abrupt bans and invest in logistics, including cold chains and storage networks.