TEARS FROM AND FOR ONIONS-WHO IS RESPONSIBLE?

Is onion an important food for Indians? Obviously it appears so as reflected by the political significance attached to shooting prices that rule the onion markets across the country. It is not easy to forget what happened in Delhi State two decades ago when spiraling onion prices resulted in collapse of the then government. Present situation is reminiscent of what prevailed then and it appears Onion and Petrol are competing with each other to see which will breach the Rs 100 mark first! What is incongruous is the effect of this price escalation of onion on the national economy and the muddied thinking of the present day government in tackling the same. Here is a take on this "tear some" issue as is being experienced by the Indian citizen every day!

"The uptick of wholesale prices to a six month high of 6.1% in August, largely fuelled by a 244.6% increase in onion prices, is bad news for the economy. Not only does it set back hopes of a rate cut to boost investments in the monetary policy review by the RBI at the end of the week, it also highlights the government's continuing inability to manage the food economy and rein in volatility of food prices. Blaming bad weather doesn't cut much ice. The rising prices of essential food items like rice despite good monsoons are mainly due to the large stocks accumulated to meet the needs of the food security Act. The continuous increase in minimum support prices for rice and wheat by the government has also proved counterproductive as it has discouraged a shift in cropping patterns to vegetables or the diversification of production to livestock, fish and poultry. Consequently, prices of vegetables and high protein foods like milk, eggs, fish and meat have shot up, making them unaffordable to the poor. Inadequate storage facilities and the failure to modernise the food supply chain have also added to the problem. Curbing volatility in food prices and improving supply would require strong measures by both state and Union governments. States have to reform the Agriculture Produce Marketing Committee Act to allow for contract farming, direct marketing and setting up markets in the private sector. Adequate credit has to be ensured for setting up cold storage chains. The bias against large organised retailers, including foreign chains, has to be dropped. Given their global supply chains, they would have cooled domestic prices by realigning their procurement orders. The government should also shift to direct cash transfers from food subsidies, thus reducing the need to build huge stocks".

If government sources are to be believed this phenomenon is unlikely to last for long and the prices would come down in a "few days" time! According to records onion prices have been ruling abnormally high during the last few months and it is far fetched to expect the prices to come down soon. Announcing imports is just a play of words meaning nothing as not even a kilogram of foreign onion has landed in the country yet! It is a pity that consequences of policies announced like the Food Security Act are not thought of and how the country will suffer because of these follies. It is believed that farmers may increasingly switch over to cereals in the coming years because of high procurement prices offered to them, further endangering the nutritional security of the population. One can only hope that a more cohesive and visionary government after the coming general election will address these issues and reverse the present disastrous policies ruining the country. 

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

FRUITS AND VEGETABLES-GOING OUT OF THE DIET?

It may be a global phenomenon that the market prices of fresh protective foods are always higher than durable foods with predominant starch content like cereals. For example in many western countries fruits and vegetables costs an average consumer almost two to three times more for getting the recommended minimum quantity in the daily diet compared to cereal based foods. Glaringly food industry manufactures more high calorie foods at low costs attracting more and more poor income group consumers than those based on fruits and vegetables. Naturally high calories foods with high sugar, starch, fat and salt flood the market with palate tingling quality and the result is there for all to see with people bloated bodies swelling the ranks of the population day by day, the obesity epidemic showing no sign of being contained. If this is the case of rich nations what could be the situation in a poor country like India? According recent studies, the syndrome of excluding fruits and vegetables from every day diet is spreading fast in India with very serious future implications on the health of the already nutrition compromised population. Here is a take on this new disturbing trend.  

"The fear of bad monsoon has suddenly hiked the vegetables and fruits prices by 300% from the farm to your dining table," Associated Chambers of Commerce and Industry of India (ASSOCHAM) said in a survey on "Rising prices of fruits and vegetables" in which over 5,000 people took part. Over 88% of middle income group (MIG) and lower income group (LIG) find difficult to manage the household budget and squeezing families' finances to the lowest level due to uncertainty of rains, according to a country-wide survey conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) under the aegis of ASSOCHAM Social Development Foundation (ASDF). The survey was conducted in major places like Delhi-NCR, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun, Bangalore and so on.  During the last three years, the salary of average common man has gone up by 10-15% but on the other side the prices of vegetables have also gone up by 250-300%,adds the ASSOCHAM paper. The maximum impact was felt in major cities like Delhi (1st), Mumbai (2nd), Ahmedabad (3rd), Kolkata (4th), Chennai (5th), Hyderabad (6th) and Pune (7th). Around 82% of lower middle class families have been forced to skip or squeezed their budgets for vegetables because of skyrocketing prices.
The prices of most of the widely consumed vegetables have shot up during the last two weeks in most parts of the country with the early onset of monsoon rains. The sudden increases of vegetables prices have seriously hit the common men mainly in the metro cities, adds D S Rawat, Secretary General, ASSOCHAM"

Is it not tragic that the so called democratically elected government is indulging in petty politics by bringing an ordinance on food security (old wine in new bottle!) that is supposed to legally 'guarantee" two thirds of the population with some hypothetical quantity of rotten cereals? Assuming that the guaranteed quantity is delivered without any operational hiccups and imagining the grain is edible, does the government feel that its duty is just to keep the "body and soul" of its citizens together without providing any means of nourishment through protective foods? The spooky statistics from the government may say that there is less than 5% inflation in the country but the prices of essentials like fruits and vegetables have gone through the roof recently! The traders are now quoting the rate of these foods "per quarter kilo" to make it appear reasonable, a gimmick that may not go well with the consumers. Probably if the government further shirks its responsibility for ensuring "nutrition security" to its citizens, traders may start selling such foods "per 100 grams" basis by next year!   

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

      

THE GREAT CHEESE STORY-WHY AMERICANS ARE OBESE!

Does any government has a role to play in deciding what its citizens must eat or what should not be eaten? This issue received a sharp focus recently when some of pro-active policies are being taken up by governments in a few countries to discourage consumption of patently unhealthy foods. Higher taxation, limiting large sized packs and more forceful labeling regulations have been the chosen routes for achieving the goal of herding the consumers to live more responsibly and avoid social burden through diseases like diabetes, CVD, obesity, cancers etc. The on-going tussle between the farming lobby and consumer interests invariably ends up in favor of the former because of close nexus between agriculture lobby and the governing political class. Here is an interesting commentary by a critic regarding the systematic blows being delivered to the consumers by the American government through some of the most idiotic policy orchestrations to oblige its farming lobbies with almost all multinational giants investing heavily on an agenda of protecting their financial flanks.   

"Also, the Golden Age of Cheese was not purely the result of individual choices. It reflects decades of pro-cheese U.S. agriculture policy. I am not making this up. The nation's cheese binge is a case study in the broader dysfunctionality of federal farm legislation, the latest iteration of which is being debated in Congress. Yes, there are real social trends at work, too. An aging population consumes less milk as fluid and more in solid form; a wealthier population can afford a richer diet, including cheesy dishes eaten at restaurants. But the country's appetite for cheese also reflects U.S. policy. Since the New Deal, Washington has tried to protect dairy farmers through price 

supports and production controls so arcane that only specialists can understand them. As a 2004 Agriculture leaving Department report explained, the net effect of dairy programs is to prop up fluid milk prices even when producers make more of it than people want to drink — plenty of excess to dump on cheese manufacturers. "Thus, consumers see lower butter and cheese prices and higher fluid milk prices than would appear in the absence of the programs," the USDA found. Not surprisingly, fluid milk consumption has stagnated while cheese consumption has grown. Of the 188.9 billion pounds of milk produced in 2008, some 82 billion were sold to cheese makers, according to the USDA. On top of those warped incentives, the Dairy Production Stabilization Act of 1983 authorized the Agriculture Department to collect a fee from all dairy farmers and turn the money over to a corporation known as Dairy Management, which promotes consumption of cheese and other dairy products".

Cheese and ice cream are two products liked universally and one of the reasons for this phenomenon in a country like the US is the ridiculously low prices at which they are offered in the market. In contrast fluid milk consumption is deliberately depressed by making it much more costlier which has the effect of stagnating consumption by those who find it increasingly difficult to buy it due to escalating prices. The twin objectives of satisfying the farmer as well as the industry are achieved by increased retail prices of milk to the consumer and supply of excess milk production to the dairy processing industry to turn out products like cheese, butter and ice cream at relatively low prices. It is the consumer who is left behind in this convoluted situation as drinking milk is progressively reduced and consumption of high calorie and high fat foods is increased putting the consumer health in jeopardy. This explains the tripling of the population that has become over weight and obese in the last 40 years and to day more than two thirds of American population are categorized as either over weight or obese! It is the unfortunate political compulsions that make the ruling class blind to the dangers of wrong and unhealthy food and environmental degradation due to pollution, global warming and other scientifically proven findings. If the US is facing frequent hot weathers, droughts, floods and similar abnormal situations to day, one must thank its government for the wrong policies being pursued by it. 

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