food security in india

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2 FOOD SECURITY IN INDIA Nitish Sharma Alok Pandey

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3 42% of world’s under-nourished children live in India. -Global Hunger Index,2010 Hunger remains the No.1 cause of death in the world. Aids, Cancer etc. follow. Over 200 million Indians will sleep hungry tonight. Over 7000 Indians die of hunger every day. Sources : -UN World Food Programme -UN World Health Organization: Global Database on Child Growth and Malnutrition, 2006 -UN Food and Agriculture Organization: SOFI 2006 Report -National Commission for Enterprises in the Unorganized Sector (India) -National Family Health Survey 2005 – 06 (NFHS-3) (India) -Centre for Environment and Food Security (India) "For now I ask no more than the justice of eating." Pablo Neruda, Chilean Poet, Noble Prize Winner

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4 Alarming situation

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5 India has the largest food schemes in the World. Entitlement Feeding Programmes ICDS (All Children under six, Pregnant and lactating mother) MDMS (All Primary School children) Food Subsidy Programme Targeted Public Distribution System (35 kgs/ month of subsidised food grains Annapurna (10 kgs of free food grain for destitute poor) Antyodaya Anna Yojana Employment Programmes National Rural Employment Guarantee Scheme (100 days of employment at minimum wages) Social Safety Net Programmes National Old Age Pension Scheme (Monthly pension to BPL) National Family Benefit Scheme (Compensation in case of death of bread winner to BPL families) Rashtriya Krishi Vikas Yojana Rajiv Gandhi Drinking Water Mission

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6 INDIAN AGRI-BUSINESS:FACTS AND FIGURES 2 nd largest arable land(184 million hectares) in the world. Largest irrigated land(55 million hectares) in the world. Largest producer of : Wheat(15% of global production) Pulses(21% of global production) Milk(90 million tones). Largest producer and exporter of spices. 2 nd largest producer of rice(22% of global rice production) and the largest producer of world’s best BASMATI RICE. Largest livestock population. 2 nd largest producer of fruits and vegetables. source: FICCI, Ministry of Agriculture(2008) Are we really food short?

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7 So why are we food insecure?? MAPLECROFT : Food Security Risk Index India – 25/148 China – 107/148 GLOBAL HUNGER INDEX: a world wide survey carried out by International Food Policy Research Institute (USA) India – 67/84 Pakistan – 52/84 China- 19/84 Source:www.yojana.gov.in

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8 Sustainable food security The three dimensions of this problem need concurrent attention: Availability of food Access to food Absorption of food in the body

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9 Production Storage Distribution

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10 Production Current Status : Self sufficient. Disturbance in the equilibrium : Natural calamities, fiscal emergencies. Suggestions: Reach of modernization to the real farmers in form of seeds, fertilizers & irrigational facilities. Exploiting the perennial and non-perennial water resources to the optimum level. Bringing more land under the cultivable area.

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11 Procurement MINIMUM SUPPORT PRICE Applicable on 25 crops, visible only for 2. Benchmark for other varieties(which might be of inferior quality) of the same crop. GOVERNMENT CREATED HOARDING Excessive subsequent stocking. Scarcity in the open market. Parliament-clearance issues.

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12 Crops Fiscal year 2006 Fiscal Year 2010 Fiscal Year 2011 Wheat 650 1100 NA Rice 570 950 1000-1030 Maize 540 840 880 Arhar 1400 2300 3000 Moong 1520 2760 3170 Urad 1520 2520 2900 Soyabean 900 1350 1400 Sugarcane 79.50 129.84 139.12 Minimum support price for essential commodities Source: Ministry of Agriculture

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14 Storage Lagging storage capacity.

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15 Cold chain logistics India’s cold storage capacity – short by 10 million tones. 30% of the fruits and vegetables gets wasted annually(40 million tones amounting to US$13 billion) -Maheshwar and Chanakwa(2006) India expenditure on logistics activities-equivalent to 13% of the GDP(higher than the developed nations) Key reasons- higher level of inefficiencies in the system lower average trucking speeds higher turnaround times at ports cost of administrative delays

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16 Government’s mammoth task: Food Security Bill Difference between speech and action of the government. Tussle between the NAC and the PMO. NAC recommendations seldom accepted without any “improvement”. “It is the fate of most advisory committees that the government accepts whatever advice suits its purposes and ignores the rest.” - Jean Dreze, National Advisory Council

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17 Some possible solutions MSP should be made last resort for the farmer. The government should provide direct subsidies to the farmers in the form of seeds, fertilizers, irrigation. Procurement schemes should be widened to other crops and areas. Procurement schemes should be closed ended. Government should enable farmers to sell directly on the electronic spot exchanges.

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18 Distribution Inefficient existing methods of identifying and thus, targeting the needy. Leakages, corruption. Insufficient awareness and information. Facts and figures 58% of the distributed food-grains does not reach “the beneficiaries”. According to a survey,65.9 million people were BPL in the year 2009 and the BPL Cards issued crossed the 100 million mark.

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19 A presentation by C.Maheshwar, Fleet Management Training Institute, Mumbai

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20 A not so perfect public distribution system Misuse of the schemes by non-needy. Loopholes in the existing system. Need a better targeting mechanism. Identification of “poor” Keeping the criteria simple and easy to implement. motorized vehicle, landline with a bill, electricity connection with a bill, a job in an organized sector, a registered piece of land, etc. are NOT BPL . Social audits for the remaining families through community councils. Inspiration from other states where PDS has been successfully experimented with many additional features.

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21 Let’s be a part of the solution

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22 Conclusion P roduction is more or less doing good; always can and have to be bettered though. The procurement policies, storage facilities and the distribution mechanism need revamping. Individual initiatives vital in this fight against food insecurity.

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23 References http://www.thehindu.com/opinion/op-ed/article75033.ece http://www.nfsm.gov.in http://www.hindu.com/2010/12/11/stories/2010121164980300.htm http://www.yojana.gov.in/topstory_details.asp?storyid=145 http://india.gov.in/citizen/agriculture/crop_market.php http:// www.indianexpress.com/news/nac-sticks-to-its-guns-on-food-law/740780/ http ://news.outlookindia.com/item.aspx?663772 http:// www.indianmba.com/Faculty_Column/FC1075/fc1075.html http://www.asianage.com/india/bogus-bpl-card-holders-asked-surrender-854 Kurukshetra Anaj Mandi – Registrar Office

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