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India’s 259 million ton target

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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).

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Written by makanaka

December 20, 2013 at 17:08

A food and agri trojan horse for South Asia

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Keep your research questions away from our diets and our street food.

Keep your research questions away from our diets and our street food.

What happens when the formation of a “multi-country multi-institutional research programme consortium” is announced, the aim being to aid nutrition in South Asia? In my view, what happens is the beginning of a carefully guided construction of evidence, in some form, that will aid – not nutrition, but – the further industrialisation of crop staple cultivation, its transformation into processed food, and its delivery to urban consumers through retail food oligopolies.

Am I right or wrong? Time will tell, and as this is designed to be a six-year long programme, I think we will see early evidence by end-2013. The programme’s full name is curious as it is revealing – ‘Leveraging Agriculture for Nutrition in South Asia (LANSA)’. Is the mix of agriculture in South Asia currently unable to provide nutrition? If so what has changed from say 50 years ago? What does ‘leveraging’ mean and who will move the levers? To what end? As I see it, the programme’s name advertises its provenance, and this is the Consultative Group on International Agricultural Research (CGIAR).

In the view of the CGIAR and its constituent research institutes, agriculture’s most important task “is to provide food of sufficient quantity and quality to feed and nourish the world’s population sustainably so that all people can lead healthy, productive lives”. According to the CGIAR (and its donors, and its powerful collaborators and patrons, more of which below) achieving this goal “will require closer collaboration across the sectors of agriculture, nutrition, and health, which have long operated in separate spheres with little recognition of how their actions affect each other”.

This view is insidious and its logic is cunning – the CGIAR and its patrons use the climate change problem, they use food insecurity as a totem, and use food price volatility as justification for what they present as solutions. Until the rise of industrial agriculture and chemical fertiliser and the mechanisation of everything from field preparation to remote sensing, agriculture and nutrition and health existed at the core of the holistic existence of agrarian societies.

Vegetables, fresh and local and simple, more sensible by far than 'incentivised' 'interventions'.

Vegetables, fresh and local and simple, more sensible by far than ‘incentivised’ ‘interventions’.

Because the CGIAR imprint is so visible, it becomes immediately clear when we look at the members of this consortium, for the International Food Policy Research Institute (IFPRI) is there. But not leading. The leading institution is the MS Swaminathan Research Foundation (MSSRF) of India, and who better – for the CGIAR and its determined patrons – than to have as a helmsman in this spinerette of policy than the man who partnered Norman Borlaug all those years ago in the Punjab? Ah yes, in the shaping of modern agriculture contemporary history does provide inspiration, and I will tell you why in a moment more.

The excuse presented for LANSA to be brought to life is an unremarkable one, it is not original and has been used and abused for all sorts of schemes and programmes ever since India’s days of ‘garibi hatao‘, the 1960s mobilisation cry that was also an election slogan. “Despite rapid economic growth in South Asia, its rates of child undernutrition remain the highest in the world, with nearly half of children stunted or underweight,” complained the LANSA flyer, and added, “progress to reduce these rates is extremely slow. Ironically, most people in the region make their living from farming, which researchers say, offers great potential for improving nutrition”.

Great potential yes, but improving nutrition? We shall see. The programme (according to the scanty literature available, in concert, on all the partners’ websites) “will first examine existing agriculture policies and activities, looking at India, Pakistan, Bangladesh, and Afghanistan” (why are Sri Lanka and Nepal excluded? I have a theory, and will comment in a follow-up post). “It will then propose new initiatives to link agriculture and nutrition in the region, working closely with key decision-makers to ensure the research meets their needs.” Read that again – to ensure the research meets their needs! What happened to the children you were so concerned about, dearies? “The goal is to promote cooperation throughout the region, given the trans-border nature of many of the region’s food- and nutrition-related issues”. Yes we share rice and wheat growing ecologies, but what trans-border cooperation does this vastly ambitious consortium have in its collective mind? That too, I think, we shall see soon enough.

I have named two of the members of this group, and the others are: the Bangladesh Rural Advancement Committee (BRAC, Bangladesh), the Collective for Social Science Research (CSSR, Pakistan), the Institute of Development Studies (IDS, UK), and the Leverhulme Centre for Integrative Research on Agriculture and Health (LCIRAH, UK). Let’s take the last first. This is the philanthropic part of the Lever that we find today, far more omnisciently, via Unilever, for whom processed food is a large and growing part of its businesses. The IDS is at first glance an odd member of the group, but it has worked with the centres from both Bangladesh and Pakistan, and moreover, carries some weight with the government of Britain, whose chestfuls of pound sterling are fuelling the whole enterprise. Policy-making connections apart, this does seem to me to be mercenary of IDS, but perhaps that is the new nature of development research outfits, and neither vintage nor experience now provides insulation from the temptations of the infernal market.

What have they said they will attempt? The minimalist pamphlet mentions three “core research questions” and these are: 1. How can agriculture be provided with an enabling environment in which to leverage nutrition? 2. How can agriculture and agri-food chains be incentivised to be more pro-nutrition? 3. How can more pro-nutrition agricultural interventions be designed and implemented?

I find these very worrying. What is meant by “enabling environment”? Does it mean the same as “reform” and “austerity” for example? Are they intending to tamper with India’s mid-day meals programme from which many millions of schoolchildren benefit – and who currently (most of them every schoolday at least) eat fresh cooked meals instead of packaged, processed, biofortified, micronutriented cardboard? That second core research question reads like MBA gobbledygook to me, but coming from this famously wise group, becomes all the more worrying – “agri-food chains” and “incentivised” and “pro-nutrition”? Who will do the incentivising and at what public cost – isn’t that a fair research question too? And the third one has “pro-nutrition” again, this time combined with “interventions” – by who? Tesco and Walmart?

It is troubling that hovering behind all this trendy goal-setting and consortium building is the hungry shadow of the CGIAR and its powerful patrons. It has striven mightily to place the agriculture, nutrition, and health combination on the development agenda (formally with the IFPRI ‘2020’ conference in 2011) and including the CGIAR Research Program 4 (insiders call it CRP4). But there are the close links that are far more alarming – to USAID’s Feed the Future, to the World Economic Forum’s New Vision for Agriculture machinations and to the Bill and Melinda Gates Foundation and its championing of agri-biotech. These, in our era, are designed as the heavy machinery that supports foreign and trade policy in the international sphere. With such connections LANSA, I fear and suspect, is a new food and agriculture policy trojan horse being readied for South Asia.

The day India said ‘yes’ to Wal-Mart

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Update – The real nature of the neoliberal economy of India has become clearer with the decision – against the run of public opinion and against the evidence from the agricultural and food sectors – to permit opening up the retail sector.

Since the decision was taken, the central government has spared no effort in a cynical and devious campaign to claim that permitting foreign direct investment in retail will benefit farmers and consumers. On Sunday, 27 November 2011, large advertisements were released in newspapers proclaiming the benefits of this decision. Nothing is further from the truth. India’s urban households, those eking out livelihoods from informal work and precarious manufacturing sector jobs, recognise the untruth and see the evidence in the 10%-15% annual food inflation. Our trade unions know this and our left parties know this.

Ranged against this population, rural and urban, are the ministries and industries who see in the permission a new means to control access to food and the provisioning of food. That is why I support the opposition represented by the Communist Party of India (Marxist), whose concerns reflect those of this broad majority.

The CPI(M) has said correctly that this decision “will destroy the livelihoods of crores of small retailers and lead to monopolisation of the retail sector by the MNCs”. The party’s statement said: “Coming in the backdrop of persistent high inflation, growing joblessness and agrarian distress, this decision shows the utterly callous and anti-people character of the UPA Government. The Government seems to be more eager to meet the demands of the US and other Western governments and serve the interests of the MNCs like Walmart, Tesco and Carrefour, rather than protect those of its own people.”

India’s central ministries – now even further disrobed to reveal their predatory nature as instruments of the country’s business satraps – have held up the flimsy excuse that conditions imposed will safeguard the farmer, consumer and small retailer. This is lies.

The restriction that foreign retail outlets are limited to operating in cities of over 1 million population is meaningless because those are precisely the places where the MNCs want to go, to tap the lucrative segment of the market. It is in these cities – there are 53 cities with populations of over a million – that small retailers are mostly concentrated. India has the highest shopping density in the world, with 11 shops per 1,000 persons – these have evolved as neighbourhood suppliers and represent a cultural integration of small supplier and household familiarity.

The result is a rich density of trusted small retail – India has over 12 million such shops and these employ directly over 40 million persons. Well over 95% of these shops are run by self-employed persons in floor areas of under 500 square feet (about 48 square metres). It is these small shopkeepers in urban areas who fear for their future with the now-sanctioned entry of the MNC retailers. International experience shows that supermarkets everywhere invariably displace small retailers. Small retail has been virtually wiped out in the developed countries like the US and Europe. South East Asian countries had to also impose stringent zoning and licensing regulations in order to restrict the growth of supermarkets, after small retailers were getting displaced.

Then there is the cunning untruth that the condition for making at least 50% of the investment in ‘backend’ infrastructure will benefit rural populations, as this is said to lead to more cold chains and other logistics, benefiting the farmers. International experience has, however, shown that procurement by MNC retailers do not benefit the small farmers – we have seen this in India despite the specious and manufactured ‘case studies’ produced by India’s management schools (the several worthless and compradorist Indian Institutes of Management and their similarly worthless competitors). Over time, smallholder farmers receive depressed prices and find it difficult to meet the arbitrary quality standards. Allowing procurement by MNCs will also allow the central government to reduce its own procurement responsibilities, and this will directly affect the food security of those millions of rural and urban households which depend India’s public food distribution system.

2011/11/25 – This is a turning point for India’s economy. The central government has allowed foreign investment up to 51% in the retail sector for ‘multi-brand’ ventures, and has allowed 100% foreign investment for single brand retailers.

With this permission, the ruling United Progressive Alliance has ignored utterly the concerns of hundreds of representations made over the last year by small traders and wholesalers, and by grocery shops’ assocations all over India, against the entre of foreign direct invetment in the retail sector. The ruling United Progressive Alliance has also ignored the needs and conditions of hundreds of thousands of smallholder farming families, who will from now on be steadily exposed to increasing levels of coercion to submit to corporate and industrial farming pressures, or to quit cultivation and join the masses of informal labour in urbanising towns and cities.

India’s powerful business and indutries associations – the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM) – have vigorously for the last two years been manoeuvring the ruling political alliance towards this position. They have been aided substantially by representations from the countries and regions who have the most to gain from this permission being given – the USA and the European Union.

The so-called economists and analysts who are regularly polled by the business media and whose pronouncements are used to justify the progression of policy towards such permission, are making a variety of claims about the effects the expected foreign investment will have on India. They are saying that this “much delayed reform” will help unclog supply bottlenecks and help ease food inflation, that it will benefit farmers who can get better prices for their produce and will bring in international expertise to streamline supply chains in India.

This is rubbish meant to distract. The big retail corporations have for years been demanding entry into a country which is estimated to have a retail sector whose annual sales are said to be around US$450 billion. But this is a sector populated by tens of thousands of tiny family-run shops that account for 90% of this enormous volume of sales. This is a turning point for India’s economy, for it signals the start of yet another struggle to first block, and then throw out the retail conglomerates.

Here are some of the many news stories on this important matter:

Moneycontrol.com – ‘Don’t expect investments to flow instantly: Bharti Walmart’ – After a long wait, the government has finally allowed 51% foreign direct investment (FDI) in the multi-brand retail. It has also decided to raise the cap on foreign investment in single-brand retailing to 100% from the current 51%. …

The Hindu – ‘Cabinet approves 51 per cent FDI in multi-brand retail’ – In a bid to remove the impression that UPA II was suffering from “decision making paralysis” and kicking off the second generation reforms, the Union Cabinet on Thursday gave its approval to allowing 51 per cent foreign direct investment (FDI) in …

Shanghai Daily (subscription) – ‘India to allow global chains to open multi-brand retail stores’ – MUMBAI, Nov. 24 (Xinhua) — India’s cabinet has given the green light to foreign investors to take up to 51 percent stakes in multi-brand retail stores later Thursday after a meeting chaired by Prime Minister Manmohan Singh, said a report by the …

MarketWatch (press release) – ‘Government of India Unleashes Potent Phase II Reforms’ – WASHINGTON, Nov 24, 2011 (BUSINESS WIRE) — The US-India Business Council (USIBC) today hailed India’s steady progress in advancing major economic reforms with the Cabinet’s approval of opening India’s vast multi-brand retail sector to foreign direct …

Reuters India – ‘India opens supermarket sector to foreign players’ – India threw open its $450 billion retail market to global supermarket giants on Thursday, approving its biggest reform in years that may boost sorely needed investment in Asia’s third-largest economy …

Wall Street Journal – ‘Carrefour Welcomes India’s Decision To Open Multi-Brand Retail Market‘ – PARIS (Dow Jones)–French retail giant Carrefour SA (CA.FR) said Thursday it welcomed the Indian government’s decision to open the country’s multi-brand retail market to foreign investment. “Carrefour will follow with attention the finalization of the …

Voice of America – ‘India Opens Retail Sector to Foreign Supermarkets’ – November 24, 2011 India Opens Retail Sector to Foreign Supermarkets VOA News India’s Cabinet has approved a plan to open up the country’s $450 billion retail sector to foreign supermarkets, a reform that could unclog supply bottlenecks that have kept …

Wall Street Journal – ‘India Unlocks Door for Global Retailers’ – MUMBAI—India paved the way for international supermarkets and department stores to establish joint ventures, a major step in opening one of the last great consumer markets that has been off-limits to many of the world’s biggest …

Hindustan Times – ‘Left and Right sharpen knives for FDI battle’ – The Cabinet’s approval of 51% FDI in multi-brand retail is likely to flare up into a major political controversy with the main opposition parties gearing up to oppose it. While BJP leaders Sushma Swaraj and Arun Jaitley jointly condemned any such move …

Namnews – ‘Government Opens Up Country’s Retail Market’ – It’s official – the Indian retail market is now open to international chains, setting the stage for a major change of the local industry. Earlier today, the Indian government approved Foreign Direct Investment of up to 51% in multi-brand retail, …

Bloomberg – ‘India Allows Foreign Investment in Retail, Paving Wal-Mart Entry’ – India approved allowing overseas companies to own as much as 51 percent of retail chains that sell more than one brand, paving the way for global retailers such as Wal-Mart Stores …

indiablooms – ‘India opens retail to foreign players’ – New Delhi, Nov 24 (IBNS): India on Thursday decided to allow foreign direct investment (FDI) in its closely-guarded multi brand retail market, paving the way for global supermarket giants to step into the $450 billion sector that was widely seen as one …

Tehelka – ‘Cabinet approves 51% FDI in multi-brand retail’ – The Cabinet cleared 51 per cent foreign direct investment (FDI) in multi-brand retail on Thursday paving the way for global retail giants like Wal-Mart and Carrefour to enter India. The Cabinet also cleared 100 per cent FDI in single-brand retail. …

Newser – ‘India to allow more foreign retail investment, likely paving way for Wal-Mart’ – India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to giant global …

NetIndian – ‘Cabinet clears 51% FDI in multi-brand retail’ – After dithering for a long time, the Union Cabinet today cleared a proposal to allow 51 per cent Foreign Direct Investment (FDI) in multi-brand retail and raised the cap to 100 per cent in single brand retail. This will allow global retail giants like …

Boston.com – ‘India opens more to foreign multibrand retailers’ – AP / November 24, 2011 NEW DELHI—India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to giant global …

Retail Week – ‘Indian cabinet approves foreign investment in retail‘ – The Indian government has cleared the way to allow multinational retailers including Tesco, Carrefour and Walmart to enter its retail market. We provide a range of advertising opportunities. By advertising with us, you are guaranteed to reach the …

Atlanta Journal Constitution – ‘India opens more to foreign multibrand retailers’ – AP NEW DELHI — India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to giant global retailers such as …

Houston Chronicle – ‘India opens more to foreign multibrand retailers’ – NEW DELHI (AP) — India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to giant global retailers such …

IBNLive – ‘FDI in retail cleared; multi brand 50 pc, single brand 100 pc’ – The Union Cabinet FDI in multi-brand retail and single brand retail despite division within the UPA on the issue.

Moneycontrol.com – ‘Cabinet approves 51% FDI in multi-brand retail’ – Indian retailers finally get a chance to rejoice as the Cabinet today cleared the bill to increase foreign direct investment to 51% in multi-brand retail and 100% in single brand. Commerce and industry minister Anand Sharma said that he would give a …

Business Standard – ‘Too early to celebrate for Pantaloon retail’ – Valuations may prove to be a hurdle, while real gains will take time to yield. Stocks of organised retail companies like Pantaloon Retail and Shoppers Stop have been in action in the recent past on hopes that foreign direct investment (FDI) in the …

BusinessWeek – ‘India Allows Foreign Investment in Retail, Paving Wal-Mart Entry’ – Nov. 24 (Bloomberg) — India approved allowing overseas companies to own as much as 51 percent of retail chains that sell more than one brand, paving the way for global retailers such as Wal-Mart Stores Inc. …

Washington Post – ‘India to allow more foreign retail investment, likely paving way for Wal-Mart’ – NEW DELHI — India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to giant global retailers such as Wal-Mart. …

STLtoday.com – ‘India opens more to foreign multibrand retailers’ – AP | Posted: Thursday, November 24, 2011 10:36 am | Loading… India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to …

Newser – ‘India to allow more foreign retail investment, likely paving way for Wal-Mart’ – India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to giant global …

Wall Street Journal (blog) – ‘FDI in Retail: If Wal-Mart Builds It, Will Indians Come?’ – The Indian government deserves credit for doing what , for at least five years, it has been contemplating: setting the stage for the creation if a modern retail industry. It is unlikely that the Cabinet was seized by Adam Smith-like …

Houston Chronicle – ‘India opens more to foreign multibrand retailers’ – NEW DELHI (AP) — India’s Cabinet decided Thursday to allow more direct foreign investment in the nation’s huge retail industry, a move that could strengthen the country’s food supply chain and open India to giant global retailers such …

Zee News – ‘Cabinet clears FDI in multi-brand retail’ – New Delhi: In a major decision, the government Thursday approved 51 percent FDI in multi-brand retail paving the way for global giants like WalMart to open mega stores in cities with population of over one million. The nod from the Union Cabinet came …

This permission, given by a ruling political coalition that has allowed food inflation to rage on unchecked for the last three years, which has regularly pushed up the prices of petrol (gasoline) and diesel, and whose record on tackling corruption and graft is shamefully weak, will not go unchallenged.

Supermarket Monopoly, the board game for food insecure times

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Thanks to Grain for posting this terrific graphic. (Grain is a small international non-profit organisation that works to support small farmers and social movements in their struggles for community-controlled and biodiversity-based food systems.)

Written by makanaka

August 30, 2011 at 23:50