Resources Research

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

Posts Tagged ‘production

India’s 259 million ton target

leave a comment »

Self-sufficiency or price volatility? There are choices to be made for food cultivators in India. Illustration: Ministry of Drinking Water and Sanitation

Self-sufficiency or price volatility? There are choices to be made for food cultivators in India. Illustration: Ministry of Drinking Water and Sanitation

Quietly, the Ministry of Agriculture has issued its first estimate for the crop year 2013-14. Food price inflation in every single state and union territory has been rising over the last four to five years, and with the furore over the WTO Ministerial Conference just over, and with promises to keep over the National Food Security Act, the big bottom-line should have been accompanied by a number of careful statements from ministries and departments concerned with cultivation and with the supply of food.

These would be the Ministry of Consumer Affairs, Food and Public Distribution, the Ministry of Agriculture itself, the Ministry of Food Processing Industries, the Ministry of Commerce (whose minister represented us at the WTO meeting), the Ministry of Rural Development (under which the gigantic rural employment guarantee programme now includes work on agriculture, and safeguards against leaching labour away from the fields when it is needed in those fields), and so on. But, we have a 259 million ton bottom-line number for the country for 2013-14 and there’s no elaboration of it whatsoever from any chamber of the government.

RG_2013-14_crop_targetsHere are the key numbers in million tons (with the first advance estimates, where given, in parentheses). Rice 105 (92.32), wheat 92.5, pulses (which is tur, gram, urad, moong, other rabi and kharif pulses) 19 (18.02), coarse cereals (which is jowar, bajra, maize, ragi, small millets, barley) 42.5 (43.99). To this I have added vegetables and fruit – these are for reasons I cannot fathom (but have suspicions about) still omitted from the targets and from the estimates; this happens four times a year, and they are released with a dullness and lethargy that belie the frantic scenes in the districts whenever a fair price shop is restocked. [You can get the xlsx file with the latest data here.]

Using averages of all-India production of vegetables and fruit for the last three years available (these are 2012-13, 2011-12 and 2010-11) I can supply what could serve as ‘targets’ for horticultural production as follows: vegetables 154.1 mt, fruit 76.3 mt. But, to hint at my suspicion, this is lucrative export produce and the government agency, the Agricultural and Processed Food Products Export Development Authority (APEDA), working in concert with the Ministry of Food Processing Industries, is responsible for converting our vegetables and fruit into produce shipped off in containers, or into raw material for India’s growing ‘food service’ industry (awful term, as if we needed yet another service to add to the inequitous burden of the info-tech and financial services) and the domestic organised retail trade (yes that means Walmart, Tesco, Auchan, Carrefour, Metro and who knows who else).

Advertisements

Written by makanaka

December 20, 2013 at 17:08

Food production and grain trade, May 2010

leave a comment »

Vendors in Mapusa, Goa

Vendors in Mapusa, Goa. The middle basket contains 'nachne', local millet

This is to be a monthly posting from now on. It will for a start draw on three main sources of global analysis: the Food and Agriculture Organisation (FAO), the International Grains Council, and the US Department of Agriculture Economic Research Service. Extracts from the three major sources run below, but this is to be placed in global context by the food production and supply situation in two of our neighbours in South Asia, Nepal and Afghanistan. There is hunger and displacement in Pakistan and Sri Lanka too, and I’ll update this posting with relevant reports. Also contrast the global views with the announcement from the US Department of Agriculture, which comes at the end of the list of extracts.

[1] “Nominal prices, in US dollar terms, of staple food commodities, mainly rice and wheat, have generally declined from the 2008 peak but remain significantly above their pre-2008 food-crisis levels in several countries. The price impact on overall food consumption of the vulnerable population is still expected to be substantial. Prices of rice have been increasing in India since the second half of 2008 and currently are above their levels of a year ago 5 percent in Chennai to 42 percent in Patna.”
“Retail prices of rice have also been rising since late 2009 in Bangladesh, the Philippines, Pakistan and Myanmar. In exporting countries such as Thailand and Viet Nam, rice prices (in local currencies) have declined since January 2010 due to strong international demand. Prices of wheat in India and Pakistan have also been rising steadily since October 2008. Recent increases are attributed to concerns over the unfavourable harvests of the current 2010 Rabi season. In Afghanistan, prices of wheat have been coming down since the 2009 bumper harvest in the country.” From FAO Crop Prospects and Food Situation May 2010

[2] “The forecast of world wheat production is increased by 2m. tons, to 660m. (676m.). World wheat consumption is forecast to grow by 1%, to a record 654m. tons, unchanged from last month. The forecast of global stocks is raised by 2m. tons, to a nine-year high of 201m. (195m.), with much of the increase in China and India.”
“World rice production in 2009/10 is estimated to decline for the first time in seven years, by 1%, to 442m. tons, mostly reflecting a reduced main crop in India. At 442m. tons, rice consumption will expand by 1%, in line with the global population trend. Inventories in China are expected to rise, but those in India and the five leading exporters are forecast to decrease. World trade in calendar 2010 is projected to recover by 5%, to 29.9m. tons, underpinned by larger shipments to Far East Asian markets.” From International Grains Council Grain Market Report 2010 May

FAO rice retail prices, from FAO Crop Prospects and Food Situation May 2010

FAO rice retail prices

[3] “Global wheat supplies for 2010/11 are projected 2 percent higher with larger year-to-year beginning stocks more than offsetting lower expected production. Global 2010/11 wheat production is projected at 672.2 million tons, down 1 percent from 2009/10 and the third largest production on record if realized. Larger projected production in EU-27, South America, and the Middle East is more than offset by expected declines in FSU-12, North Africa, South Asia, China, Canada, and Australia.”
“Global coarse grain production for 2010/11 is projected at a record 1,129.8 million tons, up 2 percent from 2009/10. Most of the 27.4-million-ton increase in coarse grains production results from higher projected foreign corn production, up 19.9 million tons from 2009/10. Higher expected foreign corn area and rising yields combine with higher U.S. area to boost global corn production to a record 835.0 million tons, up 26.5 million from 2009/10. Corn production is projected higher year-to-year for China, Mexico, India, Russia, EU-27, Ukraine, and Canada.”
“Global 2010/11 rice production is projected at a record 459.7 million tons, up 17.6 million or 4 percent from 2009/10. World disappearance (consumption and residual) is projected at a record 453.4 million tons, up 10.9 million or 2 percent. Large crops are projected for most of Asia including record or near-record crops in Bangladesh, Burma, Cambodia, India, Indonesia, the Philippines, Thailand, and Vietnam. Additionally, large crops are forecast for the U.S., EU-27, and Nigeria.” From US Department of Agriculture, World Agricultural Supply and Demand Estimates, 11 May 2010

In Nepal, food supplies are running low in the western hills. An IRIN report from Kathmandu (21 May 2010) says: “Food security for more than 600,000 people in the western hills of Nepal is set to deteriorate, aid agencies warn. With already low agricultural production in the more food-insecure areas, inflation is exacerbating matters further. “A lot of villagers are opting for more desperate coping mechanisms,” Richard Ragan, country representative for the World Food Programme (WFP), told IRIN in Kathmandu. Many villagers are already reducing the number of meals they eat each day, cutting portions, or migrating to urban areas or India for work, he said. ‘In a desperate attempt to buy food, families are even selling their livestock and household assets and the out-migration [to Nepali cities and India] has increased already by 40 percent,’ Ragan said.”

Gulmohur trees in bloom, May in Maharashtra

Gulmohur trees in bloom, May in Maharashtra

In Afghanistan, farmers face a tough choice: wheat, fruit or saffron? An IRIN report from Kabul (20 May 2010) says: “Pointing to his flourishing wheat field in the western Afghan province of Herat, Abdullah says he regrets cultivating the crop. Wheat is very cheap,” he told IRIN, adding that he would hardly make 50,000 Afghanis (about US$1,050) from his two hectares. “I won’t be able to feed my family properly with this income.” Several farmers contacted by IRIN in Helmand, Kandahar and Balkh provinces had similar sentiments. Wheat is considered a strategic crop and a staple food, but imports are always required, even when there is a bumper harvest. About seven million (over 24 percent of the country’s estimated 27 million population) are food-insecure and many others are highly vulnerable to food price fluctuations, according to aid agencies.”

Here is the announcement from the US Department of Agriculture: “US farmers, ranchers and producers are poised to achieve $104.5 billion in sales – an $8 billion increase over last year and the second highest level in history.

  • The trade surplus in agriculture is now forecast to reach $28 billion, the second highest ever achieved.
  • The report comes on the heels of an historic six-month pace by U.S. agricultural exports, which shattered records with $59 billion in sales in the first half of the fiscal year and generated a 14 percent increase over the same period last year.
  • U.S. agricultural exports to China grew by nearly $3 billion during the first half of the fiscal year to $10.6 billion, making China the United States’ top market for this period. In total, exports to Asia have reached record highs, led by strong increases in China and Southeast Asia. Other outstanding country and regional customers include the European Union, Turkey, and North Africa.”