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Agri-Food System in India

GS III >> Economy >> Agriculture

Context: A comprehensive report from the United Nations Food and Agriculture Organization (FAO) has brought attention to the hidden costs within global agri-food systems, surpassing a staggering $10 trillion.

Key highlights of the Agri-Food System report:

• Staggering hidden costs: The report reveals that the hidden costs of global agri-food systems surpass an astonishing $10 trillion.
• This staggering figure underscores the magnitude of the economic impact associated with current agricultural practices.
• Impact on middle-income Countries, especially India: In middle-income countries, with a specific focus on India, the disclosed costs constitute nearly 11% of the GDP.
• This financial burden translates into higher poverty levels, environmental harm, and health undernourishment and unhealthy dietary patterns.
• Attribution to unsustainable practices: The report attributes the escalating costs to ‘unsustainable business-as-usual activities and practices’ within agri-food systems.
• Call for transformation in Agri-Food Systems: Recognizing the urgent need for change, the report advocates for a transformative approach to agri-food systems.
• It highlights the necessity of moving away from conventional practices that have led to the identified issues and calls for a shift towards more sustainable alternatives.
• Importance of sustainable agricultural practices: The report underscores the critical importance of transitioning to sustainable agricultural practices.
• It emphasizes the need for a holistic transformation to address the hidden costs associated with global agri-food systems effectively.

Impact of Intensive Agriculture in India:

• Enhanced agricultural productivity: Significant advancements in India’s agricultural productivity have been witnessed in the past five decades through the widespread adoption of mono-cropping systems and chemical-intensive farming practices.
• Green Revolution impact: The Green Revolution, emphasizing high-yield varieties of paddy and wheat, has played a pivotal role, constituting over 70% of India’s agricultural production.
• Erosion of seed sovereignty: The introduction of seeds from multinational corporations has eroded seed sovereignty, disrupting traditional indigenous knowledge systems.
• Shift to monoculture plantations: Adoption of intensive practices has led to a shift from diverse crop varieties like pulses and millets to monoculture plantations, impacting biodiversity.
• Compromised nutritional needs: The dominance of a few crops has compromised the nutritional needs of households, sidelined traditional staples and contributed to dietary challenges.
• Adverse ecological consequences: Intensive farming has resulted in adverse ecological consequences, including the excessive extraction of groundwater, posing environmental concerns.
• Privatization and deregulation impact: The privatization drive has contributed to increased indebtedness among agrarian households, with the debt to asset ratio soaring by 630% from 1992 to 2013.
• Economic viability challenges: Agriculture in India faces growing challenges in economic viability, as reflected in the average monthly household income of farming households at ₹10,816.
• The overall impact underscores the necessity for a transition towards sustainable agricultural practices that balance productivity, ecological well-being, and economic sustainability.

Challenges of Agri-food system in India:

• Hidden costs in agricultural systems: The FAO report highlights the staggering hidden costs of global agri-food systems, surpassing $10 trillion, with India’s share at $1.1 trillion, showcasing the need for transformative measures.
• Procurement policy bias: The National Food Security Act’s procurement policy, managed by the Food Corporation of India (FCI), heavily favors rice and wheat, neglecting coarse grains. This skewed focus has led to a decline in the cultivation of diverse crops.
• Impact on food security: The preference for water-intensive cash crops like sugarcane threatens food security, affecting small and marginal farmers who are among the most food and nutrition insecure in India.
• Global trade influence: Historical trends show how global trade relations have shaped food production systems in the Global South, emphasizing the need to address the impact of global structures on local farming.

Solution of Food System in India:

• Crop diversification: Crop diversification, rooted in agroecology principles, is proposed as a solution to revitalize degraded land and soil.
• Local efforts, such as ‘akkadi saalu’ in Karnataka, involve intercropping to enhance biodiversity improve soil health.
• Hidden costs consideration: The FAO report emphasizes that alternative farming systems, despite potential income declines, address substantial hidden costs associated with current practices, reinforcing the need for a holistic evaluation.
• Millets as nutrient-rich alternatives: Millets are highlighted as a nutritious alternative, comparable in yield to rice and wheat, with the advantage of growing in semi-arid without burdening groundwater tables.
• Transitioning for sustainability: Shifting from chemical-intensive to non-pesticide management and adopting natural farming practices is advocated for reducing input costs.
• Diversified Farming Model: A visual representation suggests a diversified farm allocation, with 70% for commercial crops, 20% for food and fodder, and 10% for environmental services like oilseeds.

Government measures:

• National Food Security Act (NFSA) 2013: Ensure access to affordable and good-quality food by subsidizing food grains to those below the poverty line.
• National Food Security Mission: Increase food production and productivity through area expansion and productivity enhancement interventions in rice, wheat, pulses, oilseeds, etc.
• National Agriculture Market (e-NAM) platform: Create an online marketplace for farmers to trade their products without geographical boundaries.
• National Food Processing Mission: Promote agri-based industries for efficient use of farm produce and reduce post-harvest losses.
• NFSA and PM Garib Kalyan Anna Yojana (PMGKAY): Provide subsidized food grains to states, aiming to prevent hunger and malnutrition.
• Food Corporation of India (FCI) and Decentralized Procurement (DCP): Reimburse FCI for the gap between the cost and subsidized price of food grains. DCP states receive direct subsidies based on the quantity they procure and distribute.
• Free-of-Cost Foodgrains Initiative: Provide free-of-cost food grains to approximately 80 crore NFSA beneficiaries for one year, emphasizing the commitment to food security.
• One Nation, One Ration Card (ONORC): Strengthen foodgrain distribution, allowing beneficiaries, especially migrant workers and marginalized communities, to easily procure food grains across the country. Ensure nationwide portability of ration cards.

Way forward:

• Systematic transition approach: Farmers cannot shift abruptly from mono-cultivation to diversified crops overnight. A systematic and gradual approach is essential.
• Reducing input costs: A key strategy involves transitioning from chemical-intensive practices to non-pesticide management. Adoption of natural farming practices can further reduce input costs, promoting sustainable agriculture.
• Diversification for income generation: Encourage farmers to diversify income sources through value addition, such as incorporating livestock and poultry into their farming systems.
• Strategic land allocation: Propose a visual representation of a diversified farm, allocating 70% for commercial crops, 20% for food and fodder, and 10% for environmental services like oilseeds (trap crops). Over time, gradually reduce the fraction of commercial crops and replace border crops with locally-suitable tree species for fruits and fodder.
• Livestock integration: Integrate livestock rearing as part of the diversified farming approach to enhance farm incomes. Livestock can contribute to the overall sustainability of the farming system and provide additional revenue streams.

Source: https://www.newindianexpress.com