SELF SUFFICIENCY IN FOODS-CAN THIS BE POSSIBLE FOR ALL COUNTRIES?

If every country in this planet wants to attain self sufficiency in food, is it technically and logistically achievable? Such lofty ideals are good to be proclaimed while the ground reality will tell a different story. Food pundits and policy experts tend to debate endlessly whether this planet will have the capacity to produce sufficient foods to meet the minimum food needs of every denizen if the population grows at the current pace but there is no unanimity on this issue with many predicting food famine and deprivation in in a few decades' time from now because Mother Earth cannot support huge jump in production even if there are some dramatic technological breakthroughs in the coming years. GMO lobbyists have their own answer and they aver that gene manipulating technology can increase food production very significantly though there is very little hard evidence to support their over optimism! Set against this bleak scenario, the lamenting of British policy makers about the dependence of this country on imported foods is rather amusing. Here is a take on this new fear being expressed in the UK regarding its food future. 

"Falling self-sufficiency means Britain produces less than two-thirds (62%) of the food the country consumes, down from 75% in 1991, the National Farmers' Union said. If all the food produced in the UK in a year were stored and eaten from January 1, the "cupboard" would be bare by August 14, the NFU has calculated. Farmers are calling for support from politicians, the public and food industry to back British farming and help them produce more. NFU president Peter Kendall said the UK could not simply go around the world chasing the cheapest deal on food. "To think that today's date would signal the time when our domestic food supply runs out is frankly alarming. It says to me that we must act," he said. "Right across the board farmers have a fantastic natural capacity to produce more British food, given the right market signals and the confidence to invest. We have the right technologies to produce more from less, with precision farming helping to target fertiliser and crop protection products within centimetres. "Laser technology can even pinpoint an individual weed, improving accuracy and efficiency. Crops grown under cover help to lengthen the season for our British fruits. "But there is more to do to empower our farmers to enable them to make the most of our natural resources and feed our growing nation." He urged the Government to help create an environment where farming businesses could invest, to address market failures and iron out price volatility to ensure the food chain can increase supplies".

It was assumed that the World has become a village with no borders under liberalized economic regimes and free trade protocols worked under the aegis of WTO. If this is really so, why should the UK government worry about import of foods from other countries with surplus production? Is it because of fear of inferior and relatively unsafe foods which may find their way into the country? With hardly any surplus land for agriculture how can a geographically small country like the UK can expand cultivation? Talking about technological innovations there is a limit for achieving incremental production and putting in place farmer supporting policy initiatives is unlikely to achieve much. Probably the UK must think in terms of encouraging their farmers to go out to countries where land utilization is relatively low due to many reasons and lease out land, deploy most productive modern production technologies and bring the same for the consumption of its citizens. If India can do this why not the UK. The inter dependence of countries on each other cannot be wished away under noble patriotic fervor. As for safety adequate mechanisms are available to ensure the same with sound management systems and intense vigilance. 

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

INDIAN AGRICULTURE-THE WRONG PRIORITIES AND THE CONSEQUENCES

Internationally India is one the top food importing countries in the world  with a substantial portion of its requirements of pulses and edible oils coming from outside its boundaries and though this situation is continuing since 3 decades no palliative steps have been taken by the governments ruling the country at different point of time except for pompous and meaningless statements. It is just laughable that a few private entrepreneurs are globe trotting trying to solve India's food problems through leasing out foreign lands, especially in Africa while the real answer lies within the country. Here is a fabulous critique on the misguided and senseless policy orchestrations being pursued by successive governments with limited farsightedness!  

Sound food policy should be a priority for India, on track for the world's largest population by 2025. India has also achieved status as a major food exporter with rice, wheat and buffalo beef. Indian policies emphasize minimum support prices for farmers and subsidized crops for the poor, but these in turn spur food inflation, price volatility, overproduction of grains and overworked land. The government purchases about one third of all cereal output, yet pro-cereal policies hinder production of non-cereals like fruits, vegetables and dairy products, which benefits other export nations like Canada or Australia. Despite misgivings by economists, a food security bill guaranteeing low prices for more than two thirds of India's population is winding its way through parliament. "The end result of these policies will be India's forced integration into global agricultural markets, not only as a grain importer, but also as a leading buyer of non-cereal commodities," explains Deepak Gopinath, director of a research service on emerging markets. Global markets won't provide special pricing for India's poor.

Is it not rue that the country is being burdened by unwanted surplus food grains which neither serves domestic food security nor the export business of the country. Endless encouragement to a section of farmers who over utilize the resources of the country on non-priority food as well as non food crops has resulted in gross shortage of health protecting foods like fruits, vegetables and pulses besides raising their price beyond the reach of most citizens. To day in most urban markets no fruit is available, with the exception of Papaya, at a price less than Rs 50 per kg with fruits like apple pomegranate, strawberry etc commanding prices above Rs 100 per kg. Similarly almost all vegetables are sold at prices ranging from Rs 30 to Rs 60 per kg! Ironically the farmers who grow them are reported to be getting only a fraction of the consumer price, a major portion of it being gobbled by the so called middlemen! Unfortunately GOI does not seem to be unduly concerned and there is not yet any evidence that this issue will be addressed seriously in the near future. GOI is obsessed with only grains, formulating schemes after schemes to supply these commodities practically free to the population incurring huge subsidies draining the exchequer. Under these circumstances no one knows what lies ahead for the citizens of this country under political masters who cannot see any thing beyond their nose (or purse?). 

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

"DESI" FARMERS FLOURISHING IN "VIDESHI" LANDS!- A PARADOX!

A perennial question that has been begging for an answer in independent India is whether the country will ever be self-sufficient vis-a-vis the basic foods like cereals, pulses and edible oils? When the much hyped Green Revolution was at its pinnacle, many citizens in this country entertained hope that self-sufficiency was achievable one day or the other. But with each passing day the pessimistic population is increasing and for a valid reason. The agricultural policy of the country, if there is one, is a sham with neither the NPC nor the GOI having any clue regarding the direction the country is moving. Year after year the gap between demand and supply is widening at an alarming rate when it comes to pulses and edible oils. As for the cereals, though adequate production is being achieved to meet the statistical average per capita need, due to economic compulsions many poor families have limited or no access to them at affordable price. The global demand for food grains may provide an outlet to the surplus production of many farmers through export but the restrictive and unpredictable export policy of GOI is a dampener to such efforts. Naturally the suppressed entrepreneurial energy of aspirational Indian farmers can find expression only in a foreign land with free environment and minimum hassles by way of government interference. Here is the story of the farmers from Punjab region who are making it big in countries like Ukraine, Uzbekistan, Georgia and other erstwhile states of former Soviet Union, cocking a snook at the GOI leaving it red faced! 

Singh, 38, is one of a new wave of farmers pioneering one of the world's more unlikely migrations. During a recent spell as a cook in Dusseldorf, Germany, he heard about thousands of acres of fertile land on former collective farms lying fallow in Georgia for want of manpower. The contrast with his native Punjab, with its surging population and high land prices, was striking. So two months ago, he and three friends flew from Amritsar to Tbilisi, the Georgian capital, to seal a deal for the lease of 50 hectares. Back for a short break and some tandoori chicken, Singh said he was very happy with the move, even if he remains slightly vague about the geography of his new home. "We are paying $950 [£580] for each hectare for a 99-year lease. You'd not get much for that in the Punjab. I'm not sure if the farm is in the north or south but it is sort of over by Turkey and Armenia," he said.Singh and his associates are far from alone. A growing number of Punjabi farmers are heading for Georgia. Agents in major towns such as Jalandhar are advertising Georgian land deals and business is brisk. "It started a while back, just a dozen or so. Maybe now it is hundreds. Once words spreads there will be many. They come to me for passports. They are looking for pastures new," said JS Sodhi, the bureaucrat who issues travel documents in Amritsar, the nearest major city to Manochahal.The farmers of the Punjab, known as the grain basket of India, have long searched overseas for new land. An earlier wave of migrants went to Canada, where urbanization meant thousands of farms were empty. More recently, Punjabi farmers have been buying or renting thousands of hectares in Ukraine, Uzbekistan and across eastern and central Africa."Punjabi people are always going to different countries. They are very adventurous and enterprising," said Sodhi.

The success of these entrepreneurs will depend to a large extent on their ability to respect the local population and its ethos and culture. Identifying themselves with the local citizenry and working for their uplifting through better employment opportunities and working conditions can be expected to endear them to their country of adoption. The idea that foreigners are allowed to own land by these countries must have strong reason and that could be to increase food production to meet the local demand. Therefore any marketing efforts must keep in view the food situation in that country and at least a part of the local need must be met from the production achieved by the Indian entrepreneurs. Probably Indians can be expected to learn valuable lessons from their foreign enterprises in course of time and must keep in mind the catastrophic experience of early Indian settlers in Africa who had to flee from these countries under tragic circumstances. Let it be a win-win situation for both the Indians and the countries of their adoption.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

EUROPEAN AGRICULTURE TO FACE TURMOIL- BIG VERSUS FARMS

Transformation of agriculture from small farms to big industrial conglomerate activity over the last 50 years has certainly ensured that those countries with plenty of wealth are never starved of food. But it has also resulted in significant over production of food with enormous wastage being experienced across the food chain. While food losses in poor countries are attributed to lack of infrastructure and limited access to technology, losses in developed countries are more due to apathy and gluttony in consumption. If to day's environmental problems causing global warming are attributed to big scale burning of fossil fuels by nations richly endowed with wealth, there is the blame game floated by well to do countries pointing out the accusing finger to the poor mans "earthen hearth" that provides some succor to the people here in cooking whatever little food they can lay their hands on! Added to this precious food materials like Corn, Soybean, Palm oil etc are being diverted to make bio-fuels for running automobiles in wealthy countries. The fact that agriculture farms are getting bigger and bigger each year in Europe and the US, edging out millions of small farmers into oblivion is slowly sinking now and the forthcoming gathering of European farmers to protest against such brutal changes in the policy spectrum favoring industrial agriculture is an ominous pointer to what this planet is going to be confronted soon. Here is a take on this new development.

"Behind tractors, several hundred protesters, some of whom have been cycling or walking for weeks in the Good Food March, gathered for a mass brunch outside the European Parliament in Brussels, where a reform of the costly pan-EU farm system is being discussed. From the culinary Slow Food movement to the Friends of the Earth environmental group, eight major organizations set up the march to push demands to drastically revamp policy away from industrial farming. The coalition united under the slogan "EU farm policy must be fundamentally changed" regarding a new seven-year program that kicks in after 2013. Within the 27-nation EU, the protesters charge that farming is geared far too much toward big agribusiness at the exclusion of family farming. The demonstrators carried signs saying "Size does matter" and "No to mega sties," in their calls for small farming initiatives. They claim that large farms and agricultural multinationals are endangering the environment with chemicals and genetically modified organisms, while also increasing pressure on food prices. "We are going around and around, and nobody wants to take responsibility for the current situation and the misery in which the agricultural world is in," said Erwin Schopges, chairman of the Belgian Milk Producers Association, after he had an argument over milk prices with EU Farm Commissioner Dacian Ciolos outside EU headquarters. The 50-year-old Common Agricultural Policy has been a cornerstone of EU plans and was instrumental in staving off the threat of hunger early on before it got mired in overproduction and runaway subsidies that distorted the global agricultural markets and gave rise to trans-Atlantic trade conflicts.
"How can the EU citizens continue to accept this agriculture?" said Green farmer Jose Bove, who is vice chairman of the European Parliament's farm committee. The European Commission has made proposals to promote employment and growth in rural areas to make sure the bloc's 16.7 million farmers can continue to keep a leading place in world farming, but Wednesday's protesters want it geared more away from industrial farming and subsidies that help undercut global prices.
"We want fair conditions for farmers, a greener countryside and an end to policies that are harming poor people in developing countries," said Stanka Becheva of Friends of the Earth".

Whether such demonstrations and protests will have any impact on the powerful monopolistic industrial organizations remains to be seen. If the American experience is any indication, small farmers are unlikely to win this unequal battle. Take the case of Genetically Engineered foods which have crept into the American diet virtually unnoticed and unsolicited, dominating the food landscape of that country to day because of a benign government eternally obliged to the GM food lobbyists for their political and financial support, consumer interest taking a back seat. The cursed "subsidy system" that benefits big farmers is perpetuating a situation where small farmers whether in America, Europe, Asia or Africa are continuously being throttled. Unless another revolution takes place to unshackle theses unfortunate victims from this type of "neo slavery", this planet is going to be a poorer place to live for millions of its denizens.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

FROM IT TO AGRICULTURE-NEW PRIVATE INITIATIVES

In the Indian context it was once asked why no established business houses like Ambanis, Tatas, Birlas, Mundhras and other leading industrialists were not taking any interest in investing in food processing sector which was dominated by transnational companies or their surrogates like Lever, Nestle, Britannia, etc. True that in spite of the presence of these global giants, the small and micro enterprises were still accounting for large volume of processed foods marketed in the country. Probably one of the main reasons could be the relatively high risk involved in dealing with perishable foods compounded by traditional food habits in Indian population, vast majority of whom shun processed foods, preferring to cook at home which is much cheaper and affordable. How ever this trend seems to be changing and entry of some of these domestic players more recently in food retailing augurs well for the country. How far they will be able to sustain in the market, outliving the vibrant Mom & Pop shops controlling more than 95% of the retail market and whether they will ever achieve backward integration with farmers of the country remains to be seen. It is in this context one has to look at the attempts by a few upstarts to establish agri-business which if successful can be a fore runner of more such efforts for lateral entry into food business. Here is the story of a successful IT entrepreneur with some vision to try his managerial and entrepreneurial acumen to establish himself as a significant player in food area. 

"To begin with, the company has already invested about Rs 20 crore in INI Farms, involved in pomegranate plantations on over 1,000 acres across Maharashtra and Madhya Pradesh. The project involves doubling productivity and increasing the export content from 40 per cent of the total production now to over 70 per cent with the help of modern farming and post-harvest technologies. The idea is to create a pomegranate brand. "There are huge opportunities in agriculture and health care. Nobody has positioned these sectors as an exciting opportunity when it comes to business, even though the margins are as high as 45-70 per cent. If two or three people start glamorising the industry over the next two-three years, we'll be able to look at scale and brand building for such sectors," he adds. Screwvala is also looking at opportunities in rural health care, a sunshine industry that remains neglected. "That's the opportunity. Chances are you are going to be the only guy in this business. It's true there is a shortage of qualified doctors, but basic amenities in health care like pathology labs don't need MBBS doctors," he says. The second part of his dream project, for which he has himself committed Rs 250 crore over the next five years, is even more ambitious. His foundation called Share has finalised a blueprint to "improve the livelihood and empower people" in seven villages of Maharashtra, covering a million people across eight talukas and five districts. "Our idea is not to donate money but to help the villagers become independent enough to earn their livelihood. We want to have an exit strategy where we help them for the first two years by giving them enough push. Then, they take it over themselves," he adds.

What is striking here is the love and affinity shown by this investor for agriculture and health care after understanding the peculiar situation that prevails in these areas in India. The fact that he is committing a substantial amount of his own money to further his ambition speaks volume about his sincerity and missionary zeal. It is amazing that he has zeroed in on Pomegranate cultivation which has tremendous potential to be a health food in the coming years due to its value as a source of highly active antioxidants. There is a similar parallel in Amla cultivation in Maharashtra by Jain Irrigation of Jalgaon which has revolutionized the production of Indian Gooseberry, one of the much sought after health fruits with thousands of years of history and heritage behind it, beyond recognition. India needs such missionary zeal from local players with resources and vision to change the agriculture and horticulture scenario in the country.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

INDIAN AGRICULTURE-HERE IS ANOTHER REPORT!

In the "Babu parlor" at Delhi, producing a glossy report is considered the ultimate in assessing the work of any government department or Planning Commission. Whether the claims, promises and projection are achievable or actually achieved within the time frame does not appear to be bothering any one because there are lot of stock "excuses" readily available to explain away non-performance! If all the Babu Reports during the last 50 years emanating from the stables of government departments are collected it may require enormous storage space greater than that presently available with FCI for grain storage! Here is another high sounding report from Delhi which is supposed to highlight the future strategy of the government on agriculture, food, health and other issues concerning the country. Unfortunately it does not make any sense to the common man, steeped in pessimism looking at the track record of performance of the government. Here is a take on this "interesting" report with very little substance but high on platitudes and verbosity. 

"As per the report, the thrust areas for the agriculture sector include enhancing public sector investment in research and effective transfer of technology along with institutional reforms in research set up to make it more accountable and geared towards delivery, conservation of land, water and biological resources, development of rainfed agriculture, development of minor irrigation, timely and adequate availability of inputs, support for marketing infrastructure, increasing flow of credit particularly to the small and marginal farmers. The report highlights the fall in contribution of agriculture to the overall Gross Domestic Product (GDP), which has gone down to 13.9% (from 18% two years ago). It notes that this trend is expected in the development process of any economy. Yet, agriculture forms the backbone of development, as 52% of India's work force is still engaged in agriculture for its livelihood and is important for food security and inclusive growth. The report highlights the records achieved in the production of food grains and many other crops. Among the major steps taken in the recent years for improving crop production and productivity, the report specially highlights the contribution made by the Rashtriya Krishi Vikas Yojana (RKVY) towards increasing public investment in agriculture and allied sectors. National Food Security Mission (NFSM) and the National Horticulture Mission (NHM) have also emerged as the path breaking interventions which have helped in achieving record production of cereals, pulses, oil seeds, fruits, vegetables and spices during the last two years. Bringing Green Revolution in Eastern India (BGREI) has been started to increase the productivity of the cropping system mainly rice, wheat, maize, pulses through promotion of innovative production technologies and agronomical practices addressing the underlying key constraints of different agro-climatic sub regions. The 'State of Indian Agriculture' report emphasises the need to bridge the yield gap in low productivity regions by technology, inputs and other interventions. Raising productivity also assumes significance in view of increasing demand for land for industrialization, urbanization, housing and infrastructure. The report takes note of the structural changes in the composition of Indian agriculture, leading to diversification into horticulture, livestock and fisheries since the 1990s. Analysing the likely high contribution of these high-value sectors, the report says that the shares of fruits & vegetables and livestock have shown an increasing trend in recent years and have been growing at much faster rates than the traditional crops sector. Given the rising share of high value commodities in the total value of agricultural output and their growth potential, this segment is expected to drive agricultural growth in the years to come. Bringing in reforms to streamline domestic markets and expanding the infrastructure and institutions to connect local markets with national and global markets, will go a long way in improving India's competitiveness and the benefits from trade liberalization. Higher investment in basic infrastructure like roads, canal waters, watersheds, check dams, etc. will attract private investment in other areas of the supply chain. Highlighting the importance of private sector investment, the report observes that the private sector responds much better and faster to the incentive structures. Hence, along with bringing in greater public investment in agriculture, there is a need for bringing in reforms in the incentive structure in agriculture".

What the common man is interested is in feeling the result of development at the ground level and unfortunately there is nothing much to show except these voluminous reports. The farmer suicides continue unabated, poverty progresses without any let up, health deterioration of the population is alarming, PDS is hijacked to line the pockets of mafias, land is being grabbed all over the country and scams have become the center of governance! It is not suggested that there is a magic wand that can find solution to the problems country is facing but to have no sensitivity to the sufferings of the citizen is unpardonable. In every walk of life the citizen is being "beaten" hollow by tyrannical policies of administration, whether local, regional, state or central government. Indians are second to none in making sacrifices as long they are shared equally by all but allowing only a few privileged and well connected people cornering all the fruits of development is nothing but criminal!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

     

THE SUBSIDY "MANIA"-WEALTHY NATIONS MUST SCRAP THE POLICY

Food inflation is a concern shared by all countries, poor as well the rich ones and many suggestions have been articulated to reign in this trend that costs the consumer dearly in terms of diminishing disposal income. When there is a normal situation under a free economy the demand-supply gap determines the market price unless there is too much speculation and hording. That rich countries like the US and those in the European Union pay their farmers hefty agricultural subsidy is a fact of life though there is strong opposition to this unethical practice from poor developing countries at the WTO level. But in stead of these subsidies on the way out, they are actually increasing if the direction of economic policies of developed countries is any indication. For example the EU is slated to increase its subsidy quantum under the Common Agricultural Policy of the Union from the current Euro 55 billion to Euro 63 billion by the year 2020. According to economic experts such subsidies have a snow balling effect on food prices all over the world besides adversely affecting the land productivity. Here is a take on this issue.

"By 2020 the EU is planning to increase expenditure on the Common Agricultural Policy (CAP) by some €8billion a year at a time of catastrophically bad public finances. Despite the concern about pressure on food prices, reform of the CAP will not increase efficiency or lower prices to the consumer. The sweeping rejection of the benefits of new technologies and the proposals for more government control of food markets by many NGOs and lobby groups would exacerbate current problems. The geographical and economic realities are such that yields per hectare will have to increase substantially over the next 40 years. The CAP – especially after recent reforms – leads to farm yields well below the level of maximum efficiency. This lack of efficiency has several dimensions: land is not used for the most efficient crops; yields per hectare are well below the maximum attainable levels; and incentives to adopt – or research – new technologies that will increase productivity have been blunted. Research shows that farm subsidies do not necessarily help bio-diversity and that their abolition would lead to a less than corresponding fall in farm incomes. To a large extent, subsidies become capitalised in land values, thus increasing costs to farmers. Between 1992 and 2009 – the period since the introduction of direct payments under the CAP – the value of agricultural land and buildings in the UK rose 400 per cent compared with 38 per cent general inflation. This suggests that one of the effects of removing direct payments would be a decline in land prices, rents and associated production costs. The abolition of subsidies in New Zealand demonstrates how government subsidies damage productivity and their removal leads to increased productivity". 

Is it not ironical that in a country like the US super rich farmer families are paid large sums every year from the exchequer "for not cultivating the land"? Similarly direct subsidies in the EU make the farmers less innovative and industrious, satisfied with the return they are already getting and the chain effect is stagnation of crop yields while food needs are increasing continuously. If the demand outstrips supply as it is going to happen in a few years from now if the current practices continue, the food prices have to go north creating further hardships to the citizens. It is argued, probably with some justification, that removal of farm subsidies would wake up the farming community to work harder and use more efficient technologies to raise land productivity which in turn can be expected to reduce market prices of food materials. Whether this is going to happen depends on the collective wisdom of countries that make up the EU.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com