Mumbai: It is amusing that the Union Government should express concern at the increasing use of foodgrains for production of bio-fuels in parts of the world.
According to an official release, Dr Akhilesh Prasad Singh, Minister of State in the Ministry of Food and Public Distribution, articulated India’s position at the third ‘International Grains Summit 2008’ held recently in Egypt. The Minister is reported to have pointed out that increasing diversion of foodgrains for bio-fuels has resulted in unprecedented increase in prices, making foodgrains unaffordable for the poor population of the world.
While the Minister’s concerns may be justified, it is unclear what prompted the Indian government to take a stand against bio-fuels using traditional food crops. Countries (mainly, the US and Canada) use grains such as corn (maize) and wheat to produce bio-ethanol, which is blended with gasoline. Brazil uses sugarcane to produce bio-ethanol. In Europe, bio-diesel is popular and it is produced from vegetable oils (mainly, soyabean oil, rapeseed oil, palm oil) for blending with conventional diesel (mineral oil).
Use of bio-fuels has picked up in the last 2-3 years because of government support in industrialised countries. Blending is mandatory and there is financial support in the form of incentives granted to producers and consumers. Importantly, the US, for instance, uses its own domestic corn and wheat for ethanol production. Rapeseed oil produced in the EU is diverted for bio-diesel. Some quantities are imported to meet additional requirements.
These countries cannot be faulted for their policies that support green energy and renewable fuels.
Apart from environmental concerns, use of agricultural crops results in more remunerative prices to growers, helps scale back farm subsidies and reduces dependence on polluting fossil fuels.
The developed economies have not confiscated the food of the poor for burning as fuel. They use their own domestic produce as a result of which their traditional export surplus has declined. This has resulted in rising international prices.
How the developed countries want to dispose of their agricultural crops is their own business. It would be naïve to find fault with them and suggest that diversion of foodgrains for fuel purposes should be stopped.
Instead of criticising the policies of other countries, or delivering a sermon on what others should do, the Indian government must simply look inwards and introspect.
What has the Government done in the last four years to step up agricultural production and whether the government’s agricultural policies have delivered.
Naturally endowed
As far as agriculture is concerned, India has everything going in its favour - varied agro-climatic conditions, vast stretches of land (150 million hectares of cultivable land), 270 days of sunshine a year, 880 mm of annual rainfall and large manpower base to work on farm. No other country in the world is endowed with such natural advantages. All factors of production are present, except managerial skill and political will to beneficially exploit the natural endowment. The farm output has stagnated last 10 years. The annual average growth was a paltry 2.3 per cent during 1997-2007. Demand is surging like never before, driven by overall economic growth and rising incomes.
Agriculture, however, has remained a laggard in the otherwise rosy growth story. The Government must work towards energising the agricultural sector with the objective of raising production through higher productivity and improved quality.
Losing self-sufficiency
Pre- and post-harvest losses should be minimised. Growers cannot obtain remunerative prices unless there is investment in rural infrastructure and delivery of price and market information. We as a country are fast losing our status as food self-sufficient. We are probably moving away even from ‘near self-sufficiency’. This is the result of neglecting the structural problems of agriculture for too long. Rising import dependence for wheat, pulses and edible oil means we have to pay the global market price for importing these essential food products.
According to an official release, Dr Akhilesh Prasad Singh, Minister of State in the Ministry of Food and Public Distribution, articulated India’s position at the third ‘International Grains Summit 2008’ held recently in Egypt. The Minister is reported to have pointed out that increasing diversion of foodgrains for bio-fuels has resulted in unprecedented increase in prices, making foodgrains unaffordable for the poor population of the world.
While the Minister’s concerns may be justified, it is unclear what prompted the Indian government to take a stand against bio-fuels using traditional food crops. Countries (mainly, the US and Canada) use grains such as corn (maize) and wheat to produce bio-ethanol, which is blended with gasoline. Brazil uses sugarcane to produce bio-ethanol. In Europe, bio-diesel is popular and it is produced from vegetable oils (mainly, soyabean oil, rapeseed oil, palm oil) for blending with conventional diesel (mineral oil).
Use of bio-fuels has picked up in the last 2-3 years because of government support in industrialised countries. Blending is mandatory and there is financial support in the form of incentives granted to producers and consumers. Importantly, the US, for instance, uses its own domestic corn and wheat for ethanol production. Rapeseed oil produced in the EU is diverted for bio-diesel. Some quantities are imported to meet additional requirements.
These countries cannot be faulted for their policies that support green energy and renewable fuels.
Apart from environmental concerns, use of agricultural crops results in more remunerative prices to growers, helps scale back farm subsidies and reduces dependence on polluting fossil fuels.
The developed economies have not confiscated the food of the poor for burning as fuel. They use their own domestic produce as a result of which their traditional export surplus has declined. This has resulted in rising international prices.
How the developed countries want to dispose of their agricultural crops is their own business. It would be naïve to find fault with them and suggest that diversion of foodgrains for fuel purposes should be stopped.
Instead of criticising the policies of other countries, or delivering a sermon on what others should do, the Indian government must simply look inwards and introspect.
What has the Government done in the last four years to step up agricultural production and whether the government’s agricultural policies have delivered.
Naturally endowed
As far as agriculture is concerned, India has everything going in its favour - varied agro-climatic conditions, vast stretches of land (150 million hectares of cultivable land), 270 days of sunshine a year, 880 mm of annual rainfall and large manpower base to work on farm. No other country in the world is endowed with such natural advantages. All factors of production are present, except managerial skill and political will to beneficially exploit the natural endowment. The farm output has stagnated last 10 years. The annual average growth was a paltry 2.3 per cent during 1997-2007. Demand is surging like never before, driven by overall economic growth and rising incomes.
Agriculture, however, has remained a laggard in the otherwise rosy growth story. The Government must work towards energising the agricultural sector with the objective of raising production through higher productivity and improved quality.
Losing self-sufficiency
Pre- and post-harvest losses should be minimised. Growers cannot obtain remunerative prices unless there is investment in rural infrastructure and delivery of price and market information. We as a country are fast losing our status as food self-sufficient. We are probably moving away even from ‘near self-sufficiency’. This is the result of neglecting the structural problems of agriculture for too long. Rising import dependence for wheat, pulses and edible oil means we have to pay the global market price for importing these essential food products.
No comments:
Post a Comment