Shaktichakra, the wheel of energies

Culture and systems of knowledge, cultivation and food, population and consumption

Posts Tagged ‘foodgrain

How GM ‘science’ misled India

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For the last decade, the reckoning of what agriculture is to India has been based on three kinds of measures. The one that has always taken precedence is the physical output. Whether or not in a crop year the country has produced about 100 million tonnes (mt) of rice, 90 mt of wheat, 40 mt of other cereals (labelled since the colonial era as ‘coarse’ although they are anything but, and these include ragi, jowar, bajra and maize), 20 mt of pulses, 30 mt of oilseeds, and that mountain of biomass we call sugarcane, about 350 mt, therewith about 35 million bales of cotton, and about 12 million bales of jute and mesta.

The second measure is that of the macro-economic interpretation of these enormous aggregates. This is described in terms of gross value added in the agriculture (and allied) sector, the contribution of this sector to the country’s gross domestic product, gross capital formation in the sector, the budgetary outlays and expenditures both central and state for the sector, public and private investment in the sector. These drab equations are of no use whatsoever to the kisans of our country but are the only dialect that the financial, business, trading and commodity industries take primary note of, both in India and outside, and so these ratios are scrutinised at the start and end of every sowing season for every major crop.

The third measure has to do mostly with the materials, which when applied by cultivating households (156 million rural households, of which 90 million are considered to be agricultural only) to the 138 million farm holdings that they till and nurture, maintains the second measure and delivers the first. This third measure consists of labour and loans, the costs and prices of what are called ‘inputs’ by which is meant commercial seed, fertiliser, pesticide, fuel, the use of machinery, and labour. It also includes the credit advanced to the farming households, the alacrity and good use to which this credit is put, insurance, and the myriad fees and payments that accompany the transformation of a kisan’s crop to assessed and assayed produce in a mandi.

It is the distilling of these three kinds of measures into what is now well known as ‘food security’ that has occupied central planners and with them the Ministries of Agriculture, Rural Development, Food and Consumer Affairs (which runs the public distribution system), and Food Processing Industries. More recently, two new concerns have emerged. One is called ‘nutritional security’ and while it evokes in the consumer the idea which three generations ago was known as ‘the balanced diet’, has grave implications on the manner in which food crops are treated. The other is climate change and how it threatens to affect the average yields of our major food crops, pushing them down and bearing the potential to turn the fertile river valley of today into a barren tract tomorrow.

These two new concerns, when added to the ever-present consideration about whether India has enough foodgrain to feed our 257 million (in 2017) households, are today exploited to give currency to the technological school of industrial agriculture and its most menacing method: genetically modified (GM) or engineered seed and crop. The proprietors of this method are foreign, overwhelmingly from USA and western Europe and the western bio-technology (or ‘synbio’, as it is now being called, a truncation of synthetic biology, which includes not only GM and GE but also the far more sinister gene editing and gene ‘drives’) network is held in place by the biggest seed- and biotech conglomerates, supported by research laboratories (both academic and private) that are amply funded through their governments, attended to by a constellation of high-technology equipment suppliers, endorsed by intergovernmental groupings such as the UN Food and Agriculture Organisation (FAO) and the Consultative Group on International Agricultural Research (CGIAR), taken in partnership by the world’s largest commodities trading firms and grain dealers (and their associates in the commodities trading exchanges), and amplified by quasi-professional voices booming from hundreds of trade and news media outlets.

This huge and deep network generates scientific and faux-scientific material in lorry-loads, all of it being designed to bolster the claims of the GM seed and crop corporations and flood the academic journals (far too many of which are directly supported by or entirely compromised to the biotech MNCs) with ‘peer-reviewed evidence’. When the ‘science’ cudgel is wielded by the MNCs through their negotiators in New Delhi and state capitals, a twin cudgel is raised by the MNC’s host country: that of trade, trade tariffs, trade sanctions and trade barriers. This we have witnessed every time that India and the group of ‘developing nations’ attends a council, working group, or dispute settlement meeting of the World Trade Organisation (WTO). The scientific veneer is sophisticated and well broadcast to the public (and to our industry), but the threats are medieval in manner and are scarcely reported.

[This is the first part of an article that was published by Swadeshi Patrika, the monthly journal of the Swadeshi Jagran Manch. Part two is here.]

Written by makanaka

July 21, 2017 at 18:53

A winning kharif season for Bharat

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A rural road being repaired in the Konkan.

A rural road being repaired in the Konkan.

With only just over a week remaining of the usual June to September monsoon season, the first estimates of crop production for the year 2016-17 have brought welcome news to Bharat.

The estimates are the first in the normal series of four which are released through the crop year 2016-17 by the Ministry of Agriculture ad Farmers’ Welfare. What they show is important for two reasons.

First, they come against doubts that have been raised in various quarters since the last week of August about the adequacy of the 2016 summer monsoon. Second, they show that the effects of the drought and drought-like conditions that gripped a number of districts of Bharat from March to May have not affected crop production. These are important messages both.

Coming to the numbers released, the production of kharif rice is on target: 93.88 million tons (mt) against the target of 93 mt. The production of ‘coarse cereals’ (which includes jowar, bajra, maize, ragi, small millets and barley) is on target: 32.46 mt against the target of 32.50 mt. The production of pulses (which includes tur or arhar, gram, urad, moong, and other kharif pulses) above target: 8.7 mt against the target of 7.25 mt.

The overall outlook then for kharif season production is foodgrains of about 135 mt (final amounts will be subject to revision as states confirm their data).

Written by makanaka

September 23, 2016 at 19:36

How our kisans bested drought to give 252.2 mt

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RG_2016_foodgrains3_201608Bharat has maintained a level of foodgrains production that is above 250 million tons for the year 2015-16. This is the most important signal from the Fourth Advance Estimates of agricultural production, which have just been released by the Ministry of Agriculture. The ‘advance estimates’, four in the agricultural year, mark the progression from target production for the year to actual output.

For this rapid overview I have compared the 2015-16 fourth estimates, which will with minor adjustments become the final tally, with two other kinds of production figures. One is the five-year average until 2014-15 and the second is the ten-year average until 2014-15. While a yearwise comparison is often used to show the variation in produced crops (which are affected by price changes, policies, adequacy of the monsoon and climatic conditions), it is important to compare a current year’s nearly final crop production estimate with longer term averages. Doing so allows us to dampen the effects of variations in individual years and so gauge the performance in the current year against a wider recent historical pattern.

In this way we see that for all foodgrains (rice, wheat, coarse cereals and pulses) the production for 2015-16 is about three million tons below the five-year average but about 13.5 million tons above the ten-year average. These two comparisons need to be considered against the growing conditions our kisans dealt with during 2015 and 2014, both of which were drought years. They also need to be viewed against economic and demographic conditions, which have led to migration of agriculturalists and cultivators from villages into urban settlements (hence less available hands in the field), and the incremental degradation of agro-ecological growing regions (because of both urban settlements that grow and because of increased industrialisation, and therefore industrial pollution and the contamination of soil and water).

That the total quantity of foodgrains is adequate however has been due to the production of rice and wheat (चावल, गेंहूँ) both being above the five and ten year averages. There is undoubtedly regional variation in production (the February to May months in 2016 were marked by exceedingly hot weather in several growing regions, with difficult conditions made worse by water shortages). There is likewise the effects of more transparent procurement policies and stronger commitments being followed by state governments to adhere to or better the recommendations on minimum support prices. The host of contributing factors require inquiry and study.

What requires more urgent attention are the production figures for coarse cereals and pulses. Coarse cereals (which includes jowar, bajra, maize, ragi, small millets and barley – ज्वार, बाजरा, मक्का, रागी, छोटे अनाज, जौ) at just under 40 million tons is 4.4 million tons under the five-year average and 1.4 million tons under the ten-year average. Likewise pulses (which includes tur or arhar, gram, urad, moong, other kharif and other rabi pulses – अरहर, चना, उरद, मूँग, अन्य खरीफ दालें, अन्य रबी दालें) is 1.6 million tons under the five-year average and only 0.3 million tons above the ten-year average. The low total production of these crop types, coarse cereals and pulses, have continued to be a challenge for over a generation. The surprisingly good outputs of wheat (9.3 mt above the ten-year average) and rice (5.5 mt above the ten-year average) should not be allowed to obscure the persistent problems signalled by the outputs of coarse cereals and pulses.

Old कृषि for new भारत

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For a civilisation whose agricultural traditions are some ten millennia old, ‘agro-ecology’ is but yesterday’s word, and although well-meaning, pales before the vistas of meaning that have been encoded into our cultivating practices. These are profoundly spiritual, and until a few generations ago, embodied a philosophy about nature, ‘prakruti’ (प्रकृति), that ranged far beyond the definitions that have become en vogue over the last few decades: ecological, sustainable, holistic and so on. This brief itinerary traces some of the causes that have led to the vulgarisation of agriculture (कृषि) in Bharat, and describes the means with which to find renewal.

RG_krishi_bharat_1_201606Menus at fast food restaurants and counters are today as mystifying as the ‘apps’ that are to be found crowding on the screens of young people’s mobile phones. There are now, in our bigger cities in India, ‘apps’ to buy food with (or through). These seem to be popular with a generation that is young – usually 20 to 30 years old – and which lives in shared rented flats near their places of work, which often is the info-tech industry, and is otherwise the finance, retail, services, logistics or trading industries. If there is one aspect common to where these food ‘app’, or menu ‘app’, users work then it is that they do not work in what my generation knew with some familiarity as the manufacturing or the public sectors.

This is a distressing trend, for we have always been a civilisation that counted our farmers, rivers, forests, temples and traditions. In Sanskrit there is a word used to describe the farmer. It is ‘annadaata’, which is, the giver of grain (अन्नदाता). This reverential word is found in every major language spoken and written in India today. The ‘annadaata’ fed his or her family, fed those who needed rice, gave the rice to be used for the ceremonies and religious observances in the temples, sold the rice to the dealers in grain. For many generations, the forms in which our farmers harvested the crops they cultivated were the forms in which they were bought, stored, cooked and eaten. Even during the formative decades of ‘modern’ India – that is, the years after our Independence and until the time when we began to be considered by the Western world as a country becoming a ‘market economy’ – a household rarely owned a refrigerator.

RG_krishi_bharat_2_201606We bought rice, vegetables and the occasional fish or poultry from the market, cooked them fresh at home, and ate our meals fresh. A vegetarian meal may keep overnight to serve as a breakfast for the following morning, and in north and parts of central India, so will ‘roti’ (रोटी) made out of wheat or barley. To keep food longer, it had to be processed, that is, its nature had to change so that it would not spoil in the climate. Thus, rice was commonly parboiled and stored, or parboiled and flattened to become ‘puffed’. Every rice-growing and rice-consuming region, from a single valley to a river basin, had its own methods and preferences of keeping food from spoiling, and finding ways to store that semi-prepared food. This was a kind of processing and most of it was done in our homes.

Surely it wasn’t that long ago? But memories such as these, so vivid to 50 and 60 year olds, are today seen as evoking times of hardship, want and shortage, are seen as recalling times that an agrarian country suffered ‘hunger’ before it became globalised and a ‘market’ of some kind. Such sharp experiences, for that is what the most vivid memories are made of, are considered to be uncomfortably close to the era when famines were recorded, one after another, during the 19th century especially (but also the Bengal famine of 1943-44).

Those appalling records are presented as the rationale for the set of ideas and practice (technical and economic in approach and intent) that came to be called self-sufficiency in foodgrain, which I remember first hearing as a boy, and which much later has come to be known as food security. The links were taught to us early – famine, food shortage, hunger – but what was left out was more important, and that was the policies of the colonial occupiers (the East India Company and then Great Britain, as the country used to be called) and the consequences of the Industrial Revolution in Europe and particularly in western Europe.

RG_krishi_bharat_3_201606Like the devastating famines in India of the 19th century, the Bengal famine of 1943-44 was an artificial shortage of foodgrain, for what had been harvested was shipped out instead of being sold or distributed at home. These aspects of the relatively recent famines of India, which robbed our ancestors of parents and children, were hidden until we uncovered them out of curiosity about food histories that must have been written (or retold) but were scarcely to be found.

Even today, after so much research (especially by the last generation) has become available about the effects of colonial policies on the movements and shortages of food in India, the bogey of food shortage and hunger is still dressed in the garb of technical shortcoming, that our farmers (किसान) do not know how to increase yields because their knowledge is deficient, insufficient, inefficient. It is a slander of a collective that has supported through its efforts and wisdom a civilisation (भारतवर्ष) for centuries.

As it was with the colonial era, so it is with the pervasive apparatus of trade and finance which finds its theatre in globalisation, or the integrated world economy. One of its first tasks was to denigrate and run down a complex and extremely rich tradition of agricultural knowledge – but even to call it ‘agricultural knowledge’ is misleading, for its diverse strands of knowledge, awareness and practice encompassed our relationship with nature and natural forces, and our duties towards state, for faith and religion, towards society – while simultaneously promoting a ‘scientific’ approach that could derive its authority only by first asserting that what it was replacing was not science.

[This article is the first part of a series of four. Part two, ‘How we almost lost our growing tradition’, is here.]

Regions of wheat, lands of rice

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RG_states_agri_shares_201603

The return of budgetary focus towards agriculture and the economies of rural India will help deepen our understanding about where crops are grown and for whom. These are still more often described in national aggregate terms of annual estimates, than by season, state and the growing appetites of urban agglomerations.

This could change over the next few years, especially as the so-called services sector shrinks both by the number of people it employs and by its importance to the national economy. Services – a peculiarly invented term that was quite unknown and unused when I was a teenager – has come about because of the financialisation of those portions of social activity which were done at small scale, informally and as adjunct activities to the work of the public sector, the manufacturers and factories, and the great numbers of cultivators (and those working on agricultural produce). The many enforced errors of contemporary economics means that this will continue to change – not without pain and confusion – but that social activity that has some economic dimension will return to what it was two generations earlier.

While it does, we find there are differences in the concentration of food staples produced – that is, how much by quantity do certain regions grow our food staples as a significant fraction of national production of that food staple. This is more readily available as state quantities instead of district. I have suggested to the Ministry of Agriculture that this ought to be monitored not only at the level of the district but also by the agro-ecological zone, or region, for we have 120 in India, and they represent varying climatic conditions, soil typologies, river basins and cultivation systems.

At present, what we see then is that for rice and wheat, the top three producing states account for 36.7% (rice) and 62% (wheat) of the country’s production. This distribution – or concentration – should cause a review of the crop choices that our kisans make in the growing districts and agro-ecological zones. For a simple pointer such as this tells us that 37 out of every 100 quintals of rice grown in India are grown in West Bengal, Uttar Pradesh and Andhra Pradesh and that 62 out of every 100 quintals of wheat grown in India are grown in Uttar Pradesh, Punjab and Madhya Pradesh.

The corresponding distribution/concentration with coarse cereals is better than wheat but not better than rice for 45.4% of total coarse cereals are grown in Rajasthan, Karnataka and Andhra Pradesh. Likewise, 48.8% of all pulses are grown in Madhya Pradesh, Rajasthan and Maharashtra. The tale is similar with oilseeds (63.8% in Madhya Pradesh, Rajasthan and Gujarat), with sugarcane (73% in Uttar Pradesh, Maharashtra and Karnataka) and cotton (69.8% in Gujarat, Maharashtra and Andhra Pradesh).

With horticulture – that is, vegetables and fruit – there is less state-level concentration to be seen. India’s kisans grow about 170 million tons of vegetables and about 85 million tons of fruit a year and their concentrations vary – West Bengal and Odisha grow a great deal of brinjal, Maharashtra grows onions, Uttar Pradesh and West Bengal lead in potatoes, Madhya Pradesh and Karnataka grow the most tomatoes, and so on. Overall however, the range of distribution amongst the large states of their produce of vegetables and fruit is not as concentrated as with the food staples. The reasons for this difference can tell us a great deal about the need for district and watershed-level food security, employing as always sound zero budget farming techniques (no external inputs) and local and indigenous knowledge of cultivation techniques.

Why India must rely on local food stocks

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RG_Goa_ploughman_201507

The below average June to September monsoon season will lead to lower foodgrains production. What is the likely impact and how can society cope?

Context – For the last four years the numbers that describe India’s essential food security have become a common code: 105 million tons (mt) of rice, 95 mt of wheat, 41 to 43 mt of coarse cereals, 19 to 20 mt of pulses, 165 to 170 mt of vegetables and 80 to 90 mt of fruit.

With these quantities assured, our households feed themselves, army and factory canteens are supplied, the public distribution system is kept stocked and the processed and retail food industry secures its raw material.

Only provided there is such assurance, and that the allowance for plus or minus is as small as possible. Monsoon 2015 has removed that assurance for the agricultural year 2015-16. Our 36 states and union territories – and the 63 cities whose populations are more than a million – must begin to deal with the possible scenarios immediately.

Stock scenarios – In September 2015 the Department of Agriculture, Cooperation and Farmers Welfare, of the Ministry of Agriculture, Government of India, released the first of its usual four ‘advance estimates’ for the 2015-16 agricultural year. Each estimate sets the targets for the year for the foodgrain (and also commercial) crops, and provides with every estimate how likely it is that the annual target will be met.

This first advance estimate has issued a direct warning: rice production is estimated at 90.6 mt against a target of 106.1 mt. The wheat target is just under 95 mt but there is no estimate provided as yet. The target for coarse cereals is 43.2 mt whereas the advance estimate is just under 28 mt. The target for pulses is 20mt and the first estimate is 5.5mt.

What are the implications? The responsibility of the Department is to provide a provisional reading of the conditions that affect the production of our staple crops, and to inform and prepare state and central governments of the likelihood of shortfalls in foodgrain. The signal it has given for rice, estimated at 85% of the target, must be taken as a flashing red beacon which demands that our food stocks return to the foreground of the national agenda.

It is likely that the second and third advance estimates will see quantities revised upwards, but our planning must be based on this first estimate so that even the most adverse of natural contingencies can be met with suitable measures.

Using the first advance estimate as the basis, here are the likely annual production quantities, at 90% of the target and at 95% of the target: rice, between 95 and 101 mt; wheat, between 85 and 91 mt; coarse cereals, between 39 and 42 mt; pulses, between 16 and 17 mt; total foodgrains, between 236 and 250 mt of which cereals are between 220 and 232 mt.

RG_foodstocks_table_201509Household demand – Will these quantities suffice, as for the last four years total foodgrain targets and production have been in the region of 260-273 mt?

To help answer this question, two sets of deductions must be accounted for. To begin with, for each main category of foodgrain, there are production quantities, imports, stock variations and exports. When these are added or subtracted, a gross domestic supply quantity remains.

It is worth also noting that this gross quantity is still no more than a best assessment that is synthesised from the information provided by state governments. The first set of deductions is by way of feed, seed and waste (foodgrain that is used in animal feed, is harvested to use as seed for sowing, and which is damaged after harvest or rendered unusable because of pests and infection). Allowing for the lowest likely level of deductions, the combined deduction is about 7% for rice, 10.5% for wheat, 17% for coarse cereals, 15% for pulses, 5% for vegetables and 10% for fruits.

The available quantities are now revised further. Under a 95% of target scenario, we will have 93.5 mt of rice, 81 mt of wheat, 34.5 mt of coarse cereals and 14.5 mt of pulses. In the same way, a 95% of target scenario for vegetables is 153.5 mt and for fruits it is 72.5 mt. On the consumption side we have the households – in 2016 we will have 175 million rural and 83 million urban households.

These households will require a baseline minimum of 181 mt of cereals, 136 mt of vegetables, 45 mt of fruits and 41 mt of pulses. Under a 95% of production target scenario therefore, there will be enough cereals, enough vegetables and enough fruits. We have been falling short in pulses for several years.

But this apparent comfort is still without the second set of deductions. And these are: (1) buffer stocks of rice and wheat to be maintained, with 5-8 mt of rice during the year and 10-18 mt of wheat during the year (to fulfil the demands on the public distribution system and to fulfil the allocations for the food-based welfare programmes), and in addition the strategic reserve of 2 mt of rice and 3 mt of wheat to be maintained; (2) the use of foodgrains by the food processing and retail food industry; (3) exports of primary crops (such as rice and in particular basmati) and processed crops (vegetables and fruits); (4) the industrial use of foodgrain (including for biodiesel); (5) the diversion of cereals to alcohol distilleries.

Some amongst the second set of deductions are known – such as the withdrawals for buffer stocks and the food reserves, and the export quantities – but the others are either hidden, concealed or misreported. In a food production scenario that is less than 95% of targets (in the way that rice has already been estimated for 2015-16), the deductions from gross crop production will decrease available foodgrains, vegetables and fruits to levels that will compromise household food security, especially those households in the lower income brackets.

Recommendations – The climate variations that have led the Department of Agriculture to raise a red flag warning are no longer uncommon. The 2015 monsoon was affected by El Nino conditions, which are expected to continue into the first quarter of 2016. These changes in the pattern of the Indian summer monsoon are amplified by land use change in our districts, by deforestation, by rapid urbanisation, by inequitous water use, and by consumption behaviour. Some of these can be addressed through policy, education and incentives over the long term. What is needed immediately however are:

a) A review of the drivers of crop cultivation choice in our watersheds and agro-ecological zones so that, as far as possible, these settlements units begin the transition towards local food security in sustainable ways. This means that the income-led arguments which favour the cultivation of commercial crops for farming households must be critically re-examined – in a situation of primary crop scarcity an income buffer alone will not help these households.

b) The demands placed by export arrangements (including the export of meat, which represents fodder and feed) and by the food processing and retail food industry must be quantified and made public. Especially at the level of district administrations, the need to rationally incentivise land use towards the cultivation of food crop staples that suit agro-ecological conditions has become an urgent one. The decentralisation of planning that can make such an approach possible can take place only when hitherto hidden and concealed foodgrains use becomes public.

c) To reach self-reliance at the level of panchayat or block (tahsil, taluka), cooperative farming must be vigorously encouraged, villages must become self-reliant in the provisioning of their food staples (a consideration that must balance that of the ‘national market’), the bio-physical limits of the major food producing districts (the top 250 by quantity) have already been reached and this necessarily limits the demand urban India can exert upon rural districts, in terms not only of food quantities but also in terms of the population that must be fully engaged in foodgrains cultivation.

A new agenda for India’s agriculture

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Home, cattle, farming household and essential biomass in a hill village, Himachal Pradesh. Photo: Rahul Goswami 2014

Home, cattle, farming household and essential biomass in a hill village, Himachal Pradesh. Photo: Rahul Goswami 2014

Three weeks before the presenting of annual budget 2015-16 to the country (that is, us Bharatvaasis) and to the Parliament, the NDA-BJP government needs very much to recognise and respond sensibly to several truths. These are: that most Indian households and families are rural and agricultural, that the macro-economic fashion that has been followed since around 1990 elevates a uni-dimensional idea of economic ‘growth’ above all other considerations, and that several important factors both external and internal have rendered this idea of ‘growth’ obsolete.

Concerning the interaction of the three points – there are 90.2 million farming households households in Bharat – the analyst and commentator Devinder Sharma has reminded Arun Jaitley, Jayant Sinha, Rajiv Mehrishi, Arvind Subramanian, Ila Patnaik, H A C Prasad and other senior officials of the Finance Ministry that there is a continuing crisis which needs specific attention.

Sharma has outlined eleven points for the Ministry of Finance to take note of in its preparations for annual budget 2015-16 and I have summarised these points hereunder, and added four adjunct points to elaborate his very thoughtful advice.

Called ‘An 11-point agenda for resurrecting Indian agriculture and restoring the pride in farming’, Sharma has said: “Indian agriculture is faced with a terrible agrarian crisis. It is a crisis primarily of sustainability and economic viability. The severity of the crisis can be gauged from the spate of farm suicides. In the past 17 years, close to 3 lakh farmers reeling under mounting debt have preferred to commit suicide. Another 42% want to quit agriculture if given a choice. The spate of farmer suicide and the willingness of farmers to quit agriculture is a stark reminder of the grim crisis.”

Item 1. Providing a guaranteed assured monthly income to farmers. “Set up a National Farmers Income Commission which should compute the monthly income of a farm family depending upon his production and the geographical location of the farm.”

Item 2. No more Minimum Support Price (MSP) policy. This has historically been used to ask about its impact on food inflation. “Move from price policy to income policy. The income that a farmer earn should be de-linked from the price that his crops fetch in the market.”

Item 2.5. About 44% of agricultural households hold MGNREGA job cards. Among agricultural households, depending on the size of land held, non-farm income is significant. The need is to strengthen rural employment sources and income reliability as a major plank of local food security.

Item 3. Strengthen immediately the network of mandis (market yards) in all states and districts which provide farmers with a platform to sell their produce. “Leaving it to markets will result in distress sale.”

Fruit and vegetables being sorted in a village collection centre, Himachal Pradesh. Photo: Rahul Goswami 2014

Fruit and vegetables being sorted in a village collection centre, Himachal Pradesh. Photo: Rahul Goswami 2014

Item 4. Provide a viable marketing network for fruits and vegetables (horticultural produce). “I see no reason why India cannot carve out a marketing chain (like the milk cooperatives) for fruits, vegetables and other farm commodities.”

Item 4.5. ‘Market’ does not mean ‘mandi’. The thrust of the ‘reform’ demanded in the Agricultural Produce Marketing Committee (APMC) Acts is to “remove deterrent provisions” and “dismantle barriers to agriculture trade”. This effort will ruin smallholder farmers and must be halted.

Item 5. Cooperative farming must be encouraged including with legal support to make cooperatives more independent and effective. “Small cooperatives of organic farmers have done wonders” which be replicated for the rest of the crops.

Item 6. Villages must become self-reliant in agriculture and food security. “Shift the focus to local production, local procurement and local distribution” throughout the country for which the National Food Security Act needs amendment.

Item 7. Green Revolution areas are facing a crisis in sustainability. “With soil fertility devastated, water table plummeting and environment contaminated with chemical pesticides and fertiliser, the resulting impact on the entire food chain and human health is being increasingly felt.” We need a country-wide campaign to shift farming to non-pesticides management techniques.

Item 7.5. The agro-ecological approach to cultivation under decentralised planning (panchayat cluster) must be promoted. This has long been identified as the primary rural guide: “In the Indian development strategy, self-reliance has been conceptualised … in terms of building up domestic capabilities and reducing import dependence in strategic commodities” (from the Seventh Five Year Plan, 1985-90).

Item 8. Agriculture, dairy and forestry should be integrated. “Agricultural growth should not only be measured in terms of increase in foodgrain production but should be seen in the context of the village eco-system as a whole.”

Item 9. The government must not yield to pressure exerted via free trade agreements signed and stop food imports. “Importing food is importing unemployment.” The government must “not accept the European Union’s demand for opening up for dairy products and fruits/vegetables by reducing the import duties.”

Item 10. Climate change is affecting agriculture. Don’t look “at strategies only aimed at lessening the impact on agriculture and making farmers cope with the changing weather patterns, the focus should also be to limit greenhouse gas emissions from agriculture.” Reduce chemical fertiliser/pesticides in farming.

Item 10.5. The area-production-yield metric for agriculture is as outdated as ‘GDP growth’ is to describe a country. By adopting the principles of responsible and ecologically sound self-reliance, the whole system demands of agriculture need to be assessed with district planning being incentivised towards organic cultivation (expressly banning GM/GE).

Item 11. Localise the storage for foodgrains. In 1979 under the ‘Save Food Campaign’ grain silos were to be set up in 50 places. Localised and locally-managed foodgrain storage must be at the top of the agenda.

This is an agriculture and food agenda for the NDA-BJP government, to guide the strategies and approaches so that India does not compromise its food self-sufficiency, self-reliance (swadeshi) and return our farming households to dignity and self-respect.

India’s crop quotas for a rain-troubled year

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In this graphic, the size of the crop squares are relative to each other. The numbers are in million tons. Rice, wheat, pulses, coarse cereals, sugarcane. oilseeds and the fibre crops are the major categories for the 2014-15 crop production targets. What is always left out from the 'foodgrain'-based projections are vegetables and fruit, and these I have included based on the 2013-14 advance estimates for horticultural crops.

In this graphic, the size of the crop squares are relative to each other. The numbers are in million tons. Rice, wheat, pulses, coarse cereals, sugarcane. oilseeds and the fibre crops are the major categories for the 2014-15 crop production targets. What is always left out from the ‘foodgrain’-based projections are vegetables and fruit, and these I have included based on the 2013-14 advance estimates for horticultural crops.

Your allocation for the year could be 136 kilograms of vegetables, provided the monsoon holds good, which at this point in its annual career does not look likely. We need the veggies (not just potato, onion, cabbage and tomato) as much as fruit. But the central government is more traditionally concerned with ‘foodgrain’, by which is meant rice, wheat, pulses and coarse cereals.

That is what is meant by the ‘foodgrain production targets’, which have been issued by the Ministry of Agriculture for 2014-15 – as usual with scant sign of whether the Ministries of Earth Sciences and Water Resources were invited to a little chat over tea and samosas. I would have expected at least a “what do you think dear colleagues, is 94 million tons of wheat wildly optimistic given the clear blue skies that o’ertop us from Lutyens’ Delhi to Indore?” and at least some assenting murmurings from those foregathered.

But no, such niceties are not practiced by our bureaucrats. So the Ministry of Agriculture gruffly rings up the state agriculture departments, bullies them to send in the projections that make the Big Picture add up nicely, sends the tea-stained sheaf to the senior day clerk (Grade IV), and the annual hocus-pocus is readied once more. What the departments in the states say they are confident about is represented in the chart panel below, which shows you for rice, wheat, coarse cereals and pulses the produce expected from the major states. The question is: will monsoon 2014 co-operate?

Rice, wheat, coarse cereals and pulses, and the states which grow them the most, targets for 2014-15, using data from the Ministry of Agriculture

Rice, wheat, coarse cereals and pulses, and the states which grow them the most, targets for 2014-15, using data from the Ministry of Agriculture

Written by makanaka

July 12, 2014 at 18:25

If global food indices are descending, why are local food prices rising?

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The trends of ten international food commodity indices from 2006 onwards.

The trends of ten international food commodity indices from 2006 onwards.

The main chart plots the course of the Food and Agriculture Organisation (FAO) Food Price Index and nine other international food price indices. These are FAO’s cereals index, the International Monetary Fund’s (IMF) food index, the International Grains Council (IGC) wheat index, the IGC’s rice index, the UN Conference on Trade and Development’s (UNCTAD) two wheat indices, Unctad’s rice index, the World Bank’s (WB) food index and WB’s grains index.

Consumer price index trends 2006 to 2013 for five South Asian countries

Consumer price index trends 2006 to 2013 for five South Asian countries

The familiar FAO blue pair for 2013 August

The familiar FAO blue pair for 2013 August

On the main chart, after 2008 December four stages are marked. The first stage is 2008 December to 2010 July, when the indices describe a plateau but which is very much higher than where they were through 2006. The second stage is 2010 July to 2011 April, which corresponds to the second global food price rise and when all these indices rose in concert. The third stage is 2011 April to 2012 September when they all declined to another plateau which nonetheless is higher overall than the last one (stage one), but which rose steeply for a short while towards the end of the stage. The fourth stage is still current, from 2012 June, which is seeing a gradual decline in all the indices to the point they were in 2011 August-September.

I have appended to the main chart the counterpoint of the consumer price indexes from South Asian countries – Nepal, Sri Lanka, Bangladesh, Pakistan and India. The question that follows, when reading the main chart with ten indices and the CPI chart for South Asia, is why the CPI trends do not follow the international grains trends. One of the major factors (which charting this data cannot reveal, as the FAO Food Price Index does not) is the extent to which the industrialisation of prmary crops sets the retail price in the markets of Colombo or Chittagong or Karachi or Mumbai or Kathmandu. Primary crop – that is, cereals, pulses, fruit and vegetable, milk and dairy – is being moved internally, processed, packaged, moved again, retailed in modern convenience stores to a much greater degree than was the case a decade ago. Those costs lie outside what the FAO-IGC-IMF-Unctad-WB indices can describe. But we need to urgently – within these countries and as a group – share methods to gauge and monitor these costs and document their impacts on households.

On foodgrain stock forecasts, the IGC and USDA are both tentative

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Foodgrain exports forecasts for 2012-13 by the USDA's WASDE. These are the major exporting countries, exports in million tons.

Foodgrain exports forecasts for 2012-13 by the USDA’s WASDE. These are the major exporting countries, exports in million tons.

In this late February capsule of the foodgrain forecasts from the International Grains Council (IGC) and the US Department of Agriculture’s WASDE (world agriculture supply and demand estimates) we see estimates for slightly higher production, but also somewhat lower consumption. The question is: what about stocks, on which there is never enough knowledge distributed as to who holds them (government or private, traders or bankers) and how they are used by food markets or agricultural commodities markets?

Still, here is what the IGC has said:

Following minor revisions to the 2012-13 forecasts, the estimate for total grains end-season stocks (excluding rice) has been revised up by 4mt to 326m, including increases for both wheat and maize. Overall, however, they remain down 40mt year-on-year at a six-year low, or a 17-year low for the major exporters.

IGC’s 2013 February grain market report presented the first forecast for the 2013-14 supply and demand balance for wheat. “While world output is tentatively projected up 4% year-on-year, much is expected to be absorbed by higher demand and end-season stocks are likely to rise by just 2mt, following a 21m decline in 2012-13. The forecast for 2012-13 end-season maize stocks has been revised 1.7mt higher this month, but major exporters’ end-season inventories are still put at a 16-year low,” said the 2013 February report.

Here are the major foodgrain forecasts for wheat, rice, coarse grain and maize:

Wheat
According to the IGC – Major exporters’ stocks for 2012-13 are revised down by 1.5mt, to 49.9mt, but upward revisions for China and India raise the global total to 176mt, which is still down 21m from last year. Increases for Brazil, Iran and Russia help to lift the 2012-13 world trade forecast by 0.8mt this month, to 137.4m. World output for 2013-14 is tentatively projected up 4% year-on-year, but much is expected to be absorbed by higher demand leaving little room for stock building.
According to WASDEGlobal wheat supplies for 2012-13 are nearly unchanged with a small increase in beginning stocks more than offsetting a small decrease in production. Global wheat output is projected 0.7 million tons lower. Production is lowered for Kazakhstan and Brazil, but raised for Ukraine, South Africa, and Belarus. Global wheat consumption is virtually unchanged at 673.4 million tons; however, global consumption is projected down 24.6 million tons year to year, mostly reflecting lower feed and residual use in 2012-13. World wheat ending stocks for 2012-13 are also nearly unchanged this month at 176.7 million tons.

Rice
According to the IGC – At 466mt, world rice production is forecast to be little changed year-on-year, as smaller harvests in Asia, particularly in India, are offset by gains elsewhere. World use is expected to rise by 2% year-on-year, to a fresh record, underpinned by increases in Asia’s leading consumers. Global ending stocks are forecast to fall marginally, but supplies in the major exporters are expected to rise to a new record. World trade in 2013 is projected to decline by 5% as key importers in Asia and Africa reduce purchases from last year’s highs.
According to WASDE – Global 2012-13 projections of rice production and consumption are raised from last month, but trade and ending stocks are lowered. Global 2012-13 rice production is forecast at a record 465.8 million due to increases for Bangladesh, Bolivia, and Nepal partially offset by reductions for Argentina and Laos. Global consumption is raised 0.7 million tons to a record 469.3 million as relatively small changes are made to several countries including Bolivia, Iraq, and Nepal. Global exports for 2012-13 are lowered slightly due mainly to reductions for Argentina and China. Imports are reduced for Bangladesh, Cuba, Egypt, and Indonesia. Global 2012-13 ending stocks are reduced 0.5 million tons to about102.0 million due mostly to decreases for Egypt and Indonesia.

Coarse grain
According to WASDE – Global coarse grain supplies for 2012-13 are projected 2.1 million tons higher as a decrease in beginning stocks is more than offset by a 2.9-million-ton increase in production. Lower 2012-13 beginning stocks mostly reflect an increase in 2011-12 corn exports for Brazil and revisions to the Paraguay corn series that lower 2011-12 corn area and yield. Global 2012-13 production is also higher this month for sorghum, barley, oats, and rye. Sorghum production is raised 0.4 million tons for Mexico with higher area and yields for the summer crop, but lowered 0.2 million tons for Australia with reduced prospects for area and yields. Global barley, oats, and rye production are up a combined 0.6 million tons on larger reported crops for the FSU-12 countries.

Maize (corn)
According to the IGC – Global production is forecast to decline by 3% year-on-year, with sharp falls in the US and EU offsetting rises elsewhere, including in China and the southern hemisphere. Despite some less than ideal weather in recent months, Brazil and Argentina are still set to harvest record crops. Due to tighter supplies, world use is expected to dip by 1% year-on-year, led by reduced demand from the US ethanol sector. With total use again expected to exceed production, closing stocks will decline for a fourth consecutive year, including a sharp drop in the major exporters.

Written by makanaka

February 23, 2013 at 19:24