DEVELOPMENT AT WHAT COST? NEED FOR INTROSPECTION

Every nation aspires to be in the fore front of development vying for a place in the comity of nations with pride and honor. But the routes they choose may be different depending on the policies and practices of the ruling class which controls their destiny. Common sense tells that an agriculturally predominant country must use the strength of its farm sector to base its development while those with weak agri cultural base have to go for industrialization on a massive scale. Some countries have both these strengths and therefore have options to concentrate on either of them or both. Take for example the case of India which was a predominantly agricultural country till a few years ago and the shift in priority occurred after the economic liberalization starting in early nineteen nineties. Progressively agriculture is being sidelined and industrial and service sectors are getting more priority attention at the hands of successive governments during the past two decades. While industrial development has a place in national development policies, what is being ignored is the cost at which these developments are achieved. World wide environmental degradation is occurring on a massive scale putting the very survival of this planet in peril and one of the causes has been reckless industrialization without any environmental impact analysis. Here is a classic case from India where once revered and adored water bodies are being systematically destroyed in the name of development under the very nose of the government which has no time to see the indiscriminate destruction all around!  

"Methane gas is bubbling up from the black-coloured stew, and the water smells horrible. The holy river Yamuna, once teeming with life, is practically dead, yet a homeless man is rinsing his mouth with the noxious liquid. Under a nearby bridge, scavengers on a self-made raft are fishing out votive offerings that drivers throw from their cars to Yamuna, which is worshipped by Hindus as a goddess. But it is people and politics that are choking Yamuna to death, and ecologists are warning of a looming environmental catastrophe as World Water Day approaches on March 22. The river, New Delhi's lifeline, is reputed to be India's most polluted as well as one of the most toxic waterways worldwide. The Yamuna provides an example of Indian government policies that are focused on economic growth, often at the cost of the environment. In the meantime, the river is dying a slow yet unpublicized death, partly because it has mostly vanished from public sight behind concrete after the river was moved. A highway now runs along the old riverbed. Access to the river is possible at only a few points and glimpses of it can be gained only from road or subway bridges. Vimlendu K Jha, executive director of the environmental organization Swechha, estimates that 60 per cent of New Delhi's 14 million people have never seen the river."How can you save the Yamuna if nobody ever sees it?" he asks. The river is indeed rather beautiful -- before it reaches New Delhi and is polluted with raw sewage and toxic waste".

Every Indian must hang his head in shame listening to the sad story of the Taj Mahal "kissing" Yamuna river which has its origin in the sacred Himalayas. Millions of rupees are "wasted" in the name of rejuvenating rivers like Ganges and Yamuna while the quality of water in these rivers is progressively deteriorating to the extent they can be safely called dead rivers! There is a high profile minister calling himself "Environmental Minister" in the UPA cabinet with great conviction about what he says but with very little power to do any thing substantial at the ground level. The importance of water, qualitatively and quantitatively, cannot be under estimated and if such a policy continues disaster will be waiting to happen which the people of this once great country may have to face with terrible consequences!


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

SOLAR ELECTRICITY-POLICY INCENTIVES AND INEQUITIES!

Abundance of unlimited solar energy beckons this world to utilize the same in place of that generated by the unsustainable fossil fuel and undependable hydroelectric sources. If so why is that the growth of solar energy industry has not taken off in a big way? The answer is simple-the investment and per unit generation cost which appear to be unaffordable to most users as of now. However there are signs that this sector will garner explosive growth in the coming years if supportive policies by the governments in countries where solar energy is available plenty are tuned to attract more and more power users to go for solar system. Chinese solar energy industry is already supplying low cost solar power equipment world wide and new invest policies combined with fiscal incentives will further ensure a fast paced growth globally. But with such a positive outlook, there are also logistical problems arising out of unanticipated contingencies under different ground conditions which are highlighted in a report below emanating from California in the US.  

"When the sun is shining, the solar panels on his Fresno condominium produce more than enough power for his needs, and the local utility is required to buy the excess power from him at full retail prices. Those credits mostly offset his purchases from the electric company during cloudy days and at night. Mr. Burman says the credit system, known as net metering, is a "very nice benefit" for him. But it's not such a good deal for his utility, Pacific Gas and Electric. As he and tens of thousands of other residential and commercial customers switch to solar in California, the utilities not only lose valuable customers that help support the costs of the power grid but also have to pay them for the power they generate. Ultimately, the utilities say, the combination will lead to higher rate increases for everyone left on the traditional electric system. "Low-income customers can't put on solar panels — let's be blunt," said David K. Owens, executive vice president of the Edison Electric Institute, which represents utilities. "So why should a low-income customer have their rates go up for the benefit of someone who puts on a solar panel and wants to be credited the retail rate?"

The power utilities in the US run mostly by private companies cannot cope up with a system where their profitability is eroded and this is precisely what is happening there. The purchase clause under which they are forced to buy surplus power from home owners with installed solar power facilities at retail market rate, combined with a surplus power situation is making the situation some what dicey. While home owners are winners all the way, the conventional power generators are faced with the prospect of financial imbalance in their balance sheet compelling them to raise electricity tariff across the board, the impact of which those will be felt by those using conventional power from rid in the form of higher power bills. Probably the present policy incentives may need a revisit in the light of such contradictions.  


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

A NANO TECH DRIVEN WINE-FICTION OR REALITY?

Protagonists of Nano Technology are dreamers and if all their dreams come true consumers may have unlimited opportunities to experience the pleasure of consuming a variety of products hitherto not even thought about by the traditionalists. Here is the latest from their gable which raises the possibility of creating a wine with different flavor characteristics through nano technology flavor capsules. This product is expected to be in the market within the next 10 years according to the predictions of the people involved in its development.

"Each course of a fancy diner should be accompanied with a soothing wine. But why buy each different type separately when you can get them all out of one bottle? Nano Wine is a basic grape product that is mixed with nano sized flavour capsules. When exposed to microwaves these capsules release their flavour. Different wattage and duration of exposure means you create a different type of wine. Just open the vanilla capsules when you are in an Australian mood. Truffle puts you in an Italian atmosphere and for a smooth Merlot won't have to do anything".

It is rather amazing that in spite of serious reservations expressed by many scientists regarding the safety of nano technology, frenetic development activities are still going on though not in the lime light. The apprehension about nano particles entering the cells of humans and the unpredictable consequences there of, can be the dampener against speedy development in this area.

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

FOOD ACT AND THE SMALL PLAYERS-INDIAN DILEMMA

The much touted Food Safety Act being implemented in India since August last year seems to be a lot more controversial than originally thought. Many courts in India have stayed operation of some of the crucial sections of the Act leaving gaping holes in the safety implementation program. No doubt industry, given a chance will opt for a no-control regime with unlimited freedom to do what it feels right though such a free regime may be not to the best interest of the consumer. Any controlling policy will have to be equitable to both the industry as well as the consumer. Besides such a policy should also keep in view the practical and logistical problems different industry players may face in fulfilling the obligations cast on them by the regulations. Many small scale food handlers in India, millions in number, eking out a living selling foods, are reported to be finding it extremely difficult to continue with their day to day business because of the rigidity and impracticality of many provisions of the Act. Recent pleadings by this particular sector of food industry to modify the Act keeping in view their problems are very relevant, deserving consideration by the government. Here is a take on this issue. 

"All the vendors and small eateries use municipal water for preparing food. Everyone knows that if the water is tested it will not meet the standards specified in the act. In case the food fails quality test, the vendor will have to face jail term of six months and or fine of Rs 5 lakh. We demand that before implementing the act in Jharkhand, the state government should first improve the quality of supply water," said Sonthalia who is also the regional vice-president of the Federation of Jharkhand Chamber of Commerce and Industries (FJCCI). "We don't have food testing laboratories and the moment there is some complaint on quality of food the outlet will be sealed after collection of sample. The shop will open only after the result comes. If the result comes after one week, the shop will remain closed. We demand that the state should first set up food testing laboratories in each district and if possible have some mobile units," said Sonthalia and added if the government ignores, they would be forced to launch agitation. FJpresident Sajjan Saraf said he had written to state health secretary and requested him to exempt small traders from the purview of the act. "People having annual transaction of less that Rs 12 lakh should be exempted from taking licence for the business," said Saraf.

In a country like India where water quality in practically every urban area is suspect and in the absence of  any guarantee given by the civic authorities regarding the quality and safety of water supplied from their "protected" source, how can any responsible government punish these helpless vendors. It is to be noted that if every vendor has to invest in water purification systems it is a question of time before they go "broke"! True, the onus of giving clean and safe food is with the vendor but government has also a responsibility to provide some minimum facilities to help these minor business players to survive. Probably government of India can consider a separate mechanism to control the food quality of small vendors through appropriate modification of the law. Also for consideration is whether punishment regime for violation can be made more progressive in nature, giving more time to the small scale sector to fall in line with the national standards. Under no circumstances this sector should be allowed to be out side any control regime perpetually because of the potential dangers to consumers posed by unsafe foods, offered by some of them.

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

WILL TAXATION REDUCE SODA CONSUMPTION?-YES AND NO!

After the New York initiative to ban selling of sugar sweetened drinks with serving size beyond 16 ounces being taxed, many more cities are considering similar approach in tackling obesity among children who are the primary targets of the soda industry. The angst among the parents and policy makers is understandable when the stark statistics of soda consumption reveal a reality that cannot be brushed under the carpet any more. Is it not a horror when a city declares that more than half of its kid population are obese measured by the established yardsticks and on an average a kid gobbles up 1.8 units of soda each and every day? In the face of such a reality, can the community sit quiet and watch the emerging catastrophe without doing any thing? Probably such fiscal measures as being proposed or contemplated in many parts of USA should be viewed in this context. Whether such a policy will succeed in reversing the trend is another matter. At least these policy orchestrations must be given a chance to buck the trend. Here is a peep into the efforts of a community in California to stem the rot that was ushered in by the beverage industry. 

"As in other places, soda consumption is highest among teenagers, with more than two-thirds downing 1.8 sugar-sweetened beverages a day. Based on 242 calories a serving for a 20-ounce bottle of Coke, that equals roughly 150,000 extra calories and can lead to more than 20 pounds of weight gain a year, Dr. Brunner said. A recent study found an average of five retail food outlets within a quarter mile of every Richmond school. Alongside the announcement last week by Mayor Michael R. Bloomberg of New York supporting an outright ban on the sale of sweetened drinks larger than 16 ounces, the coming vote in Richmond may be a sign that soda and similar beverages are becoming the new tobacco in terms of public perception of health risks. "Both are pretty bold moves that wouldn't have been imaginable even five years ago," said Kelly M. Brownell, the director of the Rudd Center for Food Policy and Obesity at Yale University, which conducted much of the research supporting the efficacy of a one-cent beverage tax. "It shows that government is beginning to stand up to the food industry and there is more public support for doing so." If the Richmond ordinance passes, it will be the first of its kind in the country intended specifically to combat obesity. But soda taxes have failed elsewhere — most notably in Philadelphia, where Mayor Michael A. Nutter's attempts to impose a 2-cents-per-ounce charge on sugary drinks have sputtered twice. Nevertheless, Mr. Nutter is scheduled to be the keynote speaker this week at the nation's first Sugary Drinks Summit in Washington, sponsored by the Center for Science in the Public Interest".

Many skeptics may feel that such measures will not work, given the past history when similar attempts in alcoholic beverages and tobacco did not bring much relief in curbing their consumption. With economic recession causing immense misery, especially among the low income group, probably such attempts to make soda costlier may succeed, at least to some extent. Some diversion of purchasing power from soda sector to other more pressing daily needs may have the effect of over all reduction of soda consumption but how far this change will impact on the health front is some what uncertain. One can only wish success to these types of earnest efforts at addressing the problem of obesity.

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

HOW NATURAL IS NATURAL? A NEW DILEMMA!

With the consumers disenchanted with the processed foods that dominate the market, food industry seems to be changing its strategy to retain the customer base through new labeling tricks. Every one likes everything that is natural. Right? Here is where the industry finds solace and a new approach in marketing is emerging. It is the fear of the unknown that drives people to natural foods and this is also the basis on which organic food industry is flourishing to day. If the FDA of the US is to be relied upon a food can be called natural if no added color, flavor or synthetic substances but whether such a simplistic view can satisfy the aspirations of the consumer vis-a-vis the term natural. A critical question that begs an answer is what if a natural food undergoes modern day processing when some additives like thickeners, sugar, salt, etc are added? If a natural juice is to be produced what one has to do is just squeezing the edible portion of the fruit to get the juice but to get uniformity of the product, derived from fruits of different sweetness, color and flavor, industry is forced to add certain ingredients, mostly natural substances which does not affect the original quality in any way. While this may be perfectly in order what is being objected to is to use the word "natural" on the label. Why not blend juices of different lots to make the final product really natural with minimum quality variation. In the US where there is a powerful legal lobby, such a situation provides an opportunity to haul the industry to the courts for mislabeling. Here is a take on this subject which provides an interesting insight into the working of food industry in that country.    

"In approximately 20 lawsuits, the first one filed in New Jersey, lawyers claim the company adds chemically engineered "flavor packs" to its juice, making it taste the same year-round. On Thursday, lawyers will come together in Washington to argue before a panel of judges about where the lawsuits should be heard as a group. Tropicana declined to comment but said in a statement that it is committed to full compliance with labeling laws and to producing "great-tasting 100 percent orange juice." The orange juice lawsuits are just the latest disputes over "all natural" claims. Over the past several years, a number of major national brands have been attacked for what consumers have called deceptive labeling. Tostidos, SunChips, Snapple and Ben & Jerry's ice cream have all faced similar attacks. The lawsuits have become common enough that the Grocery Manufacturers Association, which represents more than 300 food and beverage makers, had a panel that discussed the topic as part of a conference in February. Lawyers representing food and beverage companies have told their clients to be wary. Part of the problem, lawyers agree, is that consumers are looking for healthier products, and companies have responded by creating and branding their products as "all natural." The Food and Drug Administration, the agency that oversees packaged food labeling in the United States, has no definition of what counts as "natural." As long as a food labeled "natural" doesn't contain added color, artificial flavor or synthetic substances, the agency doesn't object. That's not enough guidance, some lawyers said. "The whole natural issue is a mess," said Michael Jacobson, the executive director of the Center for Science in the Public Interest, a Washington-based food safety and advocacy group that helped get the makers of 7UP and Capri Sun to stop making natural claims about their products. Jacobson and others say the FDA's lack of guidance has left lingering questions. One question has been whether a product with high fructose corn syrup, which is made by processing corn but does not occur naturally, can be labeled natural. That was the issue in a 2007 lawsuit over Snapple drinks. Snapple has said it no longer uses high fructose corn syrup in products marked "all natural," and a New York judge ultimately ruled in Snapple's favor and closed the case last year, but other lawsuits are still questioning the use of the term".

Labeling on front of the package is an important means of informing the consumer about the nature of the contents inside the sealed pack which is a constitutional right of every citizen under freedom of information provision. Consumer reposes so much confidence on the government of the land to protect their rights and violation of this trust ought to be frowned upon. If the industry is allowed to get away with breaking this trust, hauling them before the judiciary is a perfectly valid action. On the other hand allowing the legal attorneys to entice the consumer to go to court to extract fat compensation on silly score also cannot be justified. In the present case one is not sure whether using the term natural on juices without adding water or other unnecessary additives is such a crime deserving judicial intervention. Industry must also introspect as to the need to use the term indiscriminately as long as the product conforms to the standards laid down in the statute books. what the regulators can do is to tighten the standards without giving any scope for misinterpretation by the industry.

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

POLICY PARALYSIS-IMPACT ON FARM FRONT

The present government in India is being criticized by many dispassionate observers for not taking right decisions at right time on many issues leading to distortions in the development of the country. This situation often described as "policy paralysis" can have long term consequences on the orderly progress of the nation affecting the lives of the 1.2 billion plus people inhabiting the country. There is no unanimity within the government itself as reflected by the divergent views expressed by the ministers on many issues that concern the nation. Latest to come to the fore is regarding the export policy which is causing lot of heart burns among some sections of farming community. Whether it is the wheat, sugar or cotton, government invariably takes long time to decide what to do with the surpluses putting every body involved in unnecessary suspense, some time causing economic losses in the process.  Recent open letter by the Agri Minister to the Prime Minister criticizing some of his own colleagues is a classical example of such a policy paralysis whereas what is needed is a dynamism to address the issue promptly before any damage is done. Here is a take on this episode which could have been avoided if there is a vibrant government sensitive to the needs of the country. 

"Irked by curbs on milk, cotton and sugar exports, Agriculture Minister Sharad Pawar has shot off a letter to Prime Minister Manmohan Singh stating that the government's policies are hurting farmers who are being asked to subsidise the industry. Pawar wrote to the Prime Minister yesterday, a day after group of ministers disallowed cotton export beyond 13 million bales for the current marketing year. He strongly criticised Food Ministry headed by KV Thomas and the Textile Ministry under the charge of Anand Sharma for the policies which are "ambivalent" and go against farmers. Describing restriction on cotton exports as "retrograde", the NCP chief said: "Indian cotton farmers should not be asked to bear the burden of subsidising the textile mills. "Compromising the interest of small cotton farmers to benefit the textile magnates is indeed a travesty of justice. Moreover, it defies logic to permit the consumer of cotton (textile industry) to dictate terms to cotton producer...". Similarly, he said the "negative approach" of the Food Department in allowing sugar exports has led to heavy losses in export earnings which could have been used to clear cane arrears to farmers that have crossed Rs8,000 crore. Pawar told the Prime Minister, "On numerous occasions I have discussed with you the need to have farmer-centric agriculture policy...On each of these occasions, I have found you in consonance with these ideas. "However, despite this our government has time and again taken decision which go against the interest of the farming community and adversely impacts its growth and stability". High input cost and low realisation from his produce has pushed the farmer into a corner where he fights for his survival, he said, underscoring the need for a free trade regime to ensure a remunerative prices to farmers".

Whether farmer or consumer is supreme is a question that must be haunting the government as any action taken in agricultural front should be equitable to both. Inordinately high prices paid to the farmer can have negative consequences on the consumer in the form of high food inflation making the lives of many poor citizens miserable. Similarly unduly favoring the consumers by depressing the prices of agri commodities will have disastrous impact on the agri front affecting the production and availability adversely. Free trade regime as is being talked about is ideal but if agri production is affected by drought or other reasons, the market conditions can get distorted because of mismatch between demand and supply. Whether any responsible government in India which depends on rain Gods too frequently to come up with normal agri production can adopt such a model is doubtful. Unless a stable and dynamic export policy regime is put in place both farmers and consumers are bound to suffer. When taking decisions the impact of the same on the domestic front should not be ignored. While cotton and sugar are commodities which can be left to the free market forces, more care is needed when it comes to milk and food grains, prices of which in the domestic market should not be allowed to be distorted due to excessive exports.  

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