Thursday, December 29, 2011

Food for all


For a country that had successful Green and White revolutions some 20 years back, how did we ever reach a stage where the tax payer has to fund the govt so that no one goes to sleep hungry? Yes, we are a welfare state, and yes, no one should sleep hungry. The intention is noble, but i think this bill is not a holistic way to go about it.

All fables and all stories, advice us teach a human being to be self-sufficient, so in the long run, he can help himself. I don't think giving food at 1, 2 and 3 rupees helps. Call me cynical if you want, but the farmer will have to sell the crops at a lower cost to the government, the subsidy for that will be borne by the taxpayer, the food typically will be siphoned by the PDS agents, and the hungry will continue remain so.

Multiple sources put the numbers of hungry / malnourished between 5% to 20% of the population and cost to country anything between Rs. 25,000cr to Rs. 650,000cr to put the food security bill in effect. However, the procurement, storage, transport and making it available in a non-corrupt environment is be the biggest challenge, from where most people see it.

Lets say, we go with the government goal to ensure no one sleeps hungry in the next five years. We will make sure everyone gets food. Feeding the people isnt the problem. I see many organisations, corporates, NGOs, charitable organisations doing that. Even regular people. Feeding people is curing the symptom, not finding a solution to the problem.

If food is freely available or available at a subsidised rates, at a continued duration, it will aggravate the tax payer middle class, which will prick the political class. That too is pretty myopic. The larger concern is, the farmers wont farm anymore!! Soon, we could have a year when there will be no farm produce, and we will import food from outside. So, what part of that food will go for people who can pay for it, and what will go to those living off the subsidy?


Hence, first things first. We must encourage and incentivise agriculture and agri-research. For a country that's largely agrarian, our economy for many years has been driven by industrial growth and service sector. Yes, the second and third wave will be the driving force and factor; but we must not discount agriculture. The day the farmers think what they put into cultivating is not coming back - they will lose the plot. It has been happening pretty regularly over the last 20 years or so. The cost of living isn't coming down, then why should the minimum purchase price remain stable? Other than holding on to his land, what reason does the farmer have to yield the produce and sell the food at government prices?

Having said that, a strong willed approach is necessary for irrigation projects, making seeds available, encouraging organic produce. The reason why there is large scale migration to urban areas is disillusionment with the existing systems. If all factors are made available to the farmer, and his energies are focused on the crop cycle, where he is ensured a decent margin over his production cost, i don't see any reason why food and nutrition will be a concern. Plus, we can actually look at a realistic reverse migration model.
The farmer can put a vague and arbitrary cost to his daily effort - which will translate to higher market price and so on and so forth. That definitely can be checked with per acre sweat cost depending on the terrain etc.

The key is the government should be able to make whole grains, vegetables and fruits more accessible and cheaply available. We can look at multiple models - like, weekly bazaar where farmers directly sell the produce in markets set up on the city peripheries. Local produce should get more importance over imported or transported crops. To bring best available food to the people, either the price of the produce should be raised or heavy taxation on processed foods should be introduced.

Importance for local produce is necessary to avoid what is happening in Kerala, where cash crops (rubber, spices etc) are primary produce and they import rice, dal and vegetables! Since the cost of labour is very high, they have to get farm help too from outside! However, the locals claim joblessness.
Look at Panjab. Similar stuff - but prosperity has led to alcohol and drug abuse. And the land is concentrated due to over consumption of fertilizers etc.


Let agriculture be part of the growth story. That will ensure more food. More food for all. Yes, there will be distribution challenges but that is easy. When the local produce is plenty, you wont need to stock or transport. We need more non-SEZs led opportunities in rural areas. We need to generate more employment in the most employable sector - food, glorious food.

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