India’s Food Security Issue: A Global Concern
Published on: January 9, 2024.
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India’s agriculture sector is facing the compounded challenges of climate change and government price controls, making it vulnerable to disruption. As the world’s most populous country and a major food exporter, India’s struggle to address these issues has global implications. Recent export bans on onions, rice, wheat, and sugar have already caused havoc in global markets. Rice prices in Thailand and Vietnam have risen significantly since July due to India’s restrictions on exports.
Climate change poses another major threat to India’s food supply, as rain-fed rice yields could decline by 20% by 2050 without adaptation measures. However, domestic agricultural policies are also exacerbating the problem. The existing Agriculture Produce Marketing Committee laws, which regulate the trade of farmers’ produce, have led to cartelization and reduced competition. According to the Organization for Economic Cooperation and Development, the net regulatory costs for agricultural producers in India equal 15% of gross farm receipts. Complex domestic marketing regulations and trade policy measures have offset budgetary payments to farmers, resulting in taxes on producers.
India’s agriculture infrastructure is also in need of improvement. Poor infrastructure contributes to post-harvest losses of up to 40% for certain agricultural products. Unfortunately, reforming the food-pricing system is a politically sensitive issue, and previous attempts have faced resistance from farmers and political opponents. With upcoming general elections, immediate relief seems unlikely.
India’s position as the ninth-largest exporter of agricultural products and its large population make food security a global concern. However, the complicated politics surrounding agricultural pricing in India hinder swift changes and solutions.
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