Resources Research

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

Posts Tagged ‘Indian Council of Agricultural Research

The cost of India’s urban land grab

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This is one of two related articles written by me and published by Infochange India.The full article is here.

Transplanting paddy in the rice fields of North Goa, in monsoon 2011

If the Government of India is, during the finalisation of the Twelfth Plan (2012-17) direction for agriculture and food, deciding to favour production over rural livelihood needs, then it must recognise clearly the internal land grab that India’s farm households are experiencing. The protests in western Uttar Pradesh by farmers’ groups typify the scale of the diversion of farmland for real estate development or industrial use. In the last four years the Bahujan Samaj Party of Uttar Pradesh has approved a number of projects like the Yamuna Expressway which has been allotted to a private company, JP Infratech Ltd, which holds a contract that includes the right to construct apart from the right to collect tolls for 36 years.

A village in the tribal regions of Navsari district, Gujarat, off the Mumbai-Ahmedabad highway and its 'ribbon' land development

Along this 165-km eight-lane “super highway” a “hi-tech city” has been planned. This will include industrial parks, residential colonies, shopping malls, professional colleges, schools, hospitals and urban services centres. Currently estimated as a Rs 9,500 crore project this “hi-tech” city will, when complete to plan, occupy 43,000 hectares of land that is currently under cultivation by the residents of 1,191 villages. This very large land grab alone will remove the potential to harvest about 100,000 tonnes of foodgrain a year — an amount that can fulfil the cereal needs of all of urban Haryana for five weeks.

There are 533 urban centres with populations of between 1 million and 50,000 — this is apart from the metropolises. The drive to encourage the faster urbanisation of these 533 towns and cities has already taken an unknown amount of farmland out of cultivation. There is an estimate that in the last decade — to a large degree a consequence of the relentless expansion of the National Capital Region — Uttar Pradesh has lost about 6 million hectares of farmland. The expansion of the NCR and its satellite developments is unparalleled in modern India, but it is the biggest example of the land grab that is taking place in all urban areas in India.

A stack of crop residue in Satara district, Maharashtra. This biomass is increasingly being diverted from traditional uses and towards energy

Estimates based on fieldwork and the use of longitudinal spatial mapping based on satellite imagery show that for every acre of cultivable land that is built upon or used for urban purposes, over five years an additional four cultivable acres turns fallow and is quickly converted to non-agricultural use. How much has India lost in 2010? How much has it lost from 2001 to 2010? There are no best guesses, no reliable estimates, there is not even experimental methodology to apply to the chief crop-growing regions and their expanding settlements. Yet the macroeconomic models being produced for the central government and planning agencies promise ever-increasing yields from a plateau of cultivated land area. One of them is wrong and the evidence on the ground — and from the protests by farmers of Bhatta Parsaul village in Greater Noida — points to the error being in the models.

Will these errors be corrected before March 2012, when the Eleventh Plan ends? Will the social costs of real food inflation be counted, and will actual retail food inflation in India’s tier two and tier three cities be recognised and its underlying causes made public? At this point, all the answers are likely to be negative. The Government of India, the Ministry of Agriculture and the Ministry of Food Processing, the Ministry of Commerce and Industry (Department of Commerce), the Indian Council of Agricultural Research (ICAR) and central and state planning agencies now speak the same language — the message is that most of the growth in agriculture in future will come not from foodgrains, but from sectors such as horticulture, dairying and fisheries, where the produce is perishable, and where even greater attention needs to be paid to the logistics of transporting produce from the farm to the consumer, with minimum spoilage. Urban and urbanising markets and the structural change in nutrition being demanded by a section of the country’s population form the focus.

[This is one of two related articles written by me and published by Infochange India.The full article is here.]

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Why India’s ‘growth’ focus is ignoring the food access question

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This is one of two related articles written by me and published by Infochange India. The full article is here.

Waiting for the bus in Satara district, Maharashtra

How much food will India need to grow to feed our population in 2011-12? How much in 2013-14? Will we need to import wheat and rice or will we be self-sufficient? Do we know the environmental cost of this self-sufficiency? Are we willing to bear it? These are the questions that the Government of India, its ministries and its planning agencies must find answers to before the start of the Twelfth Five Year Plan period, which is 2012-17.

The foodgrains view from mid-2011 is one of relative comfort — 235 million tonnes is the estimate (including 94 mt rice and 84 mt wheat).

From this position, the Government of India has a set of six broad-brush objectives. These it wants its ministries and departments, connected directly and as adjunct to food and its provision, to internalise. It wants state governments to shape policy to support these objectives, which are:
* Target at least 4% growth for agriculture. Cereals are on target for 1.5% to 2% growth. India should concentrate more on other foods, and on animal husbandry and fisheries where feasible.
* Land and water are the critical constraints. Technology must focus on land productivity and water use efficiency.

On what was formerly farm land in Thane district, Maharashtra, residential condominiums are being quickly built

* Farmers need better functioning markets for both outputs and inputs. Also, better rural infrastructure, including storage and food processing.
* States must act to modify the Agricultural Produce Marketing Committee (APMC) Act/Rules (exclude horticulture), modernise land records and enable properly recorded land lease markets.
* The Rashtriya Krishi Vikas Yojana (RKVY) has helped convergence and innovation and gives state governments flexibility. This must be expanded in the Twelfth Plan.
* The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) should be redesigned to increase contribution to land productivity and rain-fed agriculture. Similarly, the Forest Rights Act (FRA) has potential to improve forest economies and tribal societies. But convergence with the National Rural Livelihoods Mission (NRLM) is required for strengthening rural livelihoods.

Are these objectives reasonable? Are they equitable and will they encourage an agriculture that is ecologically sustainable in India? From a resources use perspective, the government is right to point out certain constraints (land and water) and administrative improvements (land records, using NREGA labour for farm needs). The direction to provide better infrastructure in India’s rural districts, the better to link farmers to markets with, has been stated in every single Five Year Plan for the last five plan periods, and has been repeated in every single plan review and even more often in the Economic Surveys which accompany the annual budgets. (Under the Bharat Nirman programme, this need has to an extent been met, but the beneficiaries are as likely industry and land developers as they are cultivators.)

A 'basti' in Satara district, Maharashtra, whose residents provide both agricultural and construction site labour

Protecting livelihoods in agriculture, cultivation and from use of forest produce is not, however, a central aim for food and agriculture in the Twelfth Plan. This omission, surprising from the social equity point of view, is taking place because the central government has before it three points it is trying to make sense of, and to decide the best way to tackle. In brief, these three points are: there is a “structural change” taking place in nutrition (more consumption of dairy and meat); there are world factors influencing foodgrain production, consumption and use in India; there are indications that agriculture’s share of GDP is today edging higher than it was five years ago, and that per capita agricultural income is increasing faster than overall per capita income.

It is the last trend, as seen by the central government although not by smallholder farmers and marginal cultivators, which is being taken as proof that new approaches to agriculture are delivering income benefits. The new approaches revolve heavily around the provision of infrastructure that aids modern terminal markets, agri-logistics, cold supply chains, integrated farm to retail companies, agricultural commodity traders, private warehousing service providers, export-oriented food processing units, contract farming operations which are linked to branded processed food, and exporters of cereals, fruits and vegetables. It is here that the growth in agricultural GDP is taking place and it is here that the rise in per capita agricultural income is being recorded. The central government will fight shy of a real cost-real price district analysis of agricultural investment and income because it will reveal the huge structural imbalances that are forming — that is why a national outlook artificially disaggregated into states becomes far more comfortable to defend.

[This is one of two related articles written by me and published by Infochange India. The full article is here.]

A bumper year for India’s food production?

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The third advance estimates of production of foodgrain in India has been released by the Ministry of Agriculture.

A comparison of final production of the years 1997-98 to 2010-11 (a 14-year period) with the third advance estimates shows that 2010-11 is expected to produce a record 235.88 million tons of foodgrain. This amount is higher than the 233.88 million tons of 2008-09 and the 230.78 million tons of 2007-08.

The year 2010-11 is expected to yield the third highest production of rice in the 14-year period, with 94.11 million tons, the highest production of wheat with 84.27 million tons, and the second highest production of coarse cereals with 40.21 million tons. Total cereals are to be the second highest ever in the 14-year period with production estimated at 218.59 million tons. Total pulses are expected to be 17.29 million tons, the highest in the 14-year period.

The third advance estimates will be seen by the Ministry of Agriculture and by India’s national agricultural research system (headed by the Indian Council of Agricultural Research; ICAR) as proof that the flagship programmes are delivering. These are the National Food Security Mission and the Rashtriya Krishi Vikas Yojana.

[The data file with the updated Third Advance Estimates is now ready. Get it here. The 14-year-comparison tables for foodgrain crops is available here.]

The third advance estimates for 2010-11 was released on 2011 April 06 by the Department of Agriculture & Cooperation / Directorate of Economics & Statistics / Agricultural Statistics Division.

The food industry in India and its logic

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Tractor on a road to the city, Kanpur district, Uttar Pradesh

Tractor on a road to the city, Kanpur district, Uttar Pradesh

The Economic & Political Weekly (EPW) 09 October 2010 issue carries a commentary I wrote as a backgrounder to the price rise of food staples. Here is part of the commentary:

On multiple fronts, the union government is proceeding to forge new compacts with the private sector food industry, whether global, regional or national. There is a new set of investors whose claims in the emerging food industry are being staked, and which are being encouraged by state governments eager to display their foreign direct investment (FDI)-friendliness. These are investors, promoters, asset management professionals who have learnt the patterns of the 2007-08 commodities (food included) boom and who are now well equipped to take positions, both financial and real, in the emerging food industry.

An indication of the size and scale of the national market for food (production, collection, processing, distribution, retail) being envisaged can be gauged from a “discussion paper” circulated by the Department of Industrial Policy and Promotion (DIPP) in July 2010. The paper, “Foreign Direct Investment (FDI) in Multi-brand Retail Trading”, has been circulated to “generate informed discussion on the subject” which will “enable the Government to take an appropriate policy decision at the appropriate time”. As this article shows, these decisions have already been taken and investment in the direction revealed by the paper has been rolling out for months.

Supported by the Ministry of Agriculture, the top echelons of India’s national agricultural research system and dedicated agricultural trade and investment bodies, the union government has tackled the arguments against FDI in retail by describing the “limitations” of current conditions in the Indian retail sector. That there has been a lack of investment in the logistics of the retail chain, leading to “an inefficient market mechanism”. The point is made that India is the second largest producer of fruit and vegetables in the world (about 180 million tonnes or mt) but has “very limited integrated cold-chain infrastructure” with only 5,386 stand-alone cold storages which together have a capacity of 23.6 mt. It points out that post-harvest losses of farm produce – especially fruits, vegetables and other perishables – have been estimated to be over Rs 1,00,000 crore per annum, 57% of which is due to “avoidable wastage and the rest due to avoidable costs of storage and commissions”.

A couple working in their paddy field, North Goa

A couple working in their paddy field, North Goa

From 2009, the Ministry of Agriculture’s approach to its subject has shifted perceptibly – from its stated protection of the interests of the farming household and the rural and urban consumer – towards the food industry. Employing the reasons listed above, all of which contain some reflection of actual conditions, the massive apparatus of the ministry and its appurtenant research system is now ushering in private participation and control of areas that were hitherto in the public domain. When read with the rapid movement of finance between the money markets and the commodity markets, with the extension of infrastructure and property conglomerates into the processed food “value chain” domain, and with new alliances between agricultural research institutes and market entrepreneurs, the outlook for India’s small and marginal farming households is bleak.

The concentration of funds, food handling and transport systems and growing corporate control from farm to fork can clearly be seen in an address by the Union Agriculture Minister, Sharad Pawar, at the Indian Council of Agricultural Research (ICAR) – Industry Meet on 28-29 July 2010. The meet focused on four theme areas: seed and planting material; diagnostics, vaccines and biotechnological products; farm implements and machinery; and post-harvest engineering and value addition.

Pawar said that the ministry recognises the role of the private sector in critical areas of agricultural research and human resource development. The conventional approach of public sector agricultural R&D has been to take responsibility for priority setting, resource mobilisation, research, development and dissemination. He then explained that agricultural extension, which has been neglected for several years now, is “no longer appropriate”. It is here that the impact of the Indo-US Agricultural Knowledge Initiative, now in its fifth year, can be recognised. The alternative, Pawar advised, is public-private partnerships through which public sector institutes (such as those in the ICAR network) can “leverage valuable private resources, expertise, or marketing networks that they otherwise lack”.

Coconut trees along a bund between field and stream, North Goa

Coconut trees along a bund between field and stream, North Goa

This is the undisguised merchant reasoning behind the creation of “Business Planning and Development units” in five ICAR institutes (Indian Agricultural Research Institute, Indian Veterinary Research Institute, Central Institute for Research on Cotton Technology, National Institute of Research on Jute and Allied Fibre Technology, Central Institute of Fisheries Technology). These units will tackle intellectual property management, commercialisation of research, find investors and begin businesses. India’s national agricultural research system, therefore, has decided to now become a broker of its own output (publicly funded) and a speculator seeking profits from the country’s agricultural and food price crises.

If the Ministry of Agriculture has its way, rural India will be a patchwork not of villages and hamlets but of “intelligent agrologistic networks combining consolidation centres, agroparks (agroproduction and processing park) and rural transformation centres”, which is how the MTMs and their typical built-up footprints have been described by one enthusiastic bank. The techno-industrial idiom cannot conceal the union government’s intention to encourage a dangerous new dimension to urbanisation, by provisioning infrastructure to support an internal trade in agricultural products, and doing so by allocating a greater share of scarce funds to support favoured business and trading constituents rather than to the rural constituents who need it most, the smallholder farmer and local agro-ecosystems.

Supported by the vast and powerful machinery of the Ministry of Agriculture, emboldened by the global trading successes of commodity cartels which learned their tactics in the Multi Commodity Exchange of India (Mumbai), the National Commodity and Derivatives Exchange (Mumbai), and the National Multi Commodity Exchange of India (Ahmedabad), the new entrepreneurs in India’s agribusiness sector are promoting MTMs as potentially attracting “leading foreign retail chains to anchor and plan their supply chain at and through the agrofood parks” and exploiting the MTMs’ “township model approach to attract Indian MNCs and foreign food processing companies”.

Industrial farming versus the peasantry

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Vegetable vendor, district bazaar, Maharashtra

The October-November 2010 issue of Himal Southasian is out and includes a contribution from me. The issue is themed on agriculture and ruralscapes in Southasia (that’s how Himal spells it, one word). Here’s an extract from my article:

India’s government and its agricultural research establishment are forging new compacts with the private sector food industry. Their reasons for doing so are the breakdown of agricultural extension and the need for food infrastructure. Yet low-input organic farming yields sufficient produce in tune with local conditions, and is well suited to smallholder rural farming households. This benefit is opposite to the ‘agritech’ demands of food industry powers in India, and at risk is the farm livelihood of the country’s massive majority of farmers.

In July, India’s agriculture minister, Sharad Pawar, talked about the role of the private sector in agricultural research and human-resource development in the country’s food industry. His audience was made up of participants of an ‘industry meet’ put up by the Indian Council of Agricultural Research (ICAR), assembled to discuss four issues: seed and planting material; diagnostics, vaccines and biotechnological products; farm implements and machinery; and post-harvest engineering and ‘value addition’.

Vegetable vendor, district bazaar, Maharashtra

Pawar explained the conventional approach of public-sector agricultural research and development, which has been to take responsibility for setting priorities, mobilising resources, research, development and dissemination. He then explained that agricultural extension – the education of farmers in new techniques and technologies, which has been neglected for several years – is ‘no longer appropriate’. Instead, he urged the adoption of public-private partnerships, through which public-sector institutes (such as those in the ICAR network) can ‘leverage valuable private resources, expertise or marketing networks that they [the farmers] otherwise lack’.

The so-called area, production and yield (APY) model of measuring agriculture in India has long been the dominant one, focusing on growth in irrigated area, crop production in tons and yield per hectare. In following this model, central and state planners, leveraging the reach and influence of the national agricultural research system, have automatically tended towards technology as an enabling factor and the economics of the organised food industry. This strong bias exists as a legacy of the successful years of the Green Revolution, when the massive laboratory-led creation of high-yield varieties proceeded in step with massive irrigation programmes and farm mechanisations schemes. In the process, they have turned the needs of small and marginal cultivating households into programmes and schemes, so that these small-scale farmers become ‘consumers of technology’ rather than being recognised as holders of traditional agricultural knowledge.

How the price of tomatoes is determined

These sustainable agricultural systems contribute to the delivery and maintenance of a range of public goods such as clean water, carbon sequestration, flood protection, groundwater recharge and soil conservation. But since they cannot help to achieve short-term profit-oriented goals, both the commercial effort of the National Agriculture Research System and the private sector ignore them. Finally, the cost-benefit of conservation of resources can be determined by the scarcity value of those resources. For instance, will urban food consumers be willing to pay for watershed protection in a district from which they import food?

The only way to get a positive answer from this question is by investing in public education, and by building it into public policy at an institutional level – where it immediately runs into political and business interests. The development of community-supported organic agriculture in India can provide an alternative, which will depend more on the ability of associations of organic farmers to organise, rather than on state support.

India’s organic farming systems. These grow a variety of cereals, tubers, leafy vegetables, fruits and tree crops without chemical fertiliser and pesticide and largely depend on saved seed. There are well-established biological and energy benefits of organic and agro-ecological farming that, under the growing shadow of climate change and energy scarcity, become even more compelling for farming communities.

There’s more in the full article which can be found here.