Special on World Food Day, 16 October
India should strengthen its public distribution system to reduce food scarcity
Sarika Tripathi
The Food and Agriculture Organization (FAO) of United Nations has recently
issued a report which reveals that currently there are 75 million (7.5 crore) people in the world who have fallen victim
to famine and if the current crisis of price rise persists this count may reach the total of 920.25 million (92.25
crore).
India too is facing the same harsh situations where poorest of the poor of our
country have to go to bed hungry. But at this crucial time when the country expects some stringent steps from the
government's side, it is defending itself by saying that food crisis is a global problem which has already struck over
30 countries, most of which have witnessed food riots. It is not interested in finding and disclosing the root cause of
this havoc.
The FAO report further says that in 2007-08 there has been a 52% increase in the price of grains and that of fertilizers
has doubled. In India, the retail price of many food commodities have seen a sharp rise in the past six months- pushing
the inflation level around 12 at the end of September. Experts have cited various reasons behind this food crisis like
increasing population, growing inclination towards bio-diesel crops, weakening of US currency, frequent natural
calamities.
Even the US president blamed Indians of eating more due to growing purchasing
power. But in Indian context the pro market biased policies of the government and "planned weakening" of Public
Distribution System (PDS) to benefit corporate sector are responsible for food crisis. Though the signs of the food and
agricultural crisis were noticed by the government in its early stage but it continued with its neo liberal policies to
benefit corporate sector. All this liberalization has been done under the pressure of US and World Bank who have been
constantly pressurizing India to break its tariff walls and open its market for wheat import. It was due to their
influence only that India became a wheat importer from wheat exporter. All this was done to benefit major grain
corporate companies like Glencore, Cargill India and the Australian Wheat Board. This imported wheat was unaffordable
for the poor people of India.
In spite of rising inflation and panic regarding food availability our government still believes that to sustain in
world economy we need investment and support of corporate companies. The Economic Advisory Council to the Prime Minister
advocates the role of corporate sector in agriculture and says that activities other than food grain production like
commercial crops, horticulture etc. have contributed most to agricultural GDP. The council recommends removal of
subsidies related to grain procurement and Public Distribution System, making more room for the private sector in
agriculture and promoting contract farming. These recommendations were made as per the wishes of US and World Bank who
have asked India to shift from subsidy based agro-economy to more diversified agriculture sector so as to allow
corporate companies to enter this sector.
To give entry to various giant grain corporations, the Indian government slowly and
systematically weakened its Public Distribution System (PDS) by slowing down
grain procurement, especially wheat. Taking advantage of this situation Multi
National Companies like Glencore, Cargill India, the Australian Wheat Board,
Indian companies like ITC and Adani group procured 30 lakh tones of wheat as
compared to the government's 9.2 million between 2005-07. Due to this reduced
procurement by public sector, a number of families which comes under Below
Poverty Line (BPL) and collect subsidized rations from Fair Price Shops were
devoid of their bread. The cost of wheat decided by corporate companies is far away from their purchasing power. This
disrupted the supply and demand ratio and food insecurity prevailed in the country.
FAO's Assistant Director General Hafez Ghanem has emphasized on two important
points. First, to make available grains for poor countries of the world. Second, to encourage small scale farmers to
improve crop productivity. Now, it's the high time when the Indian government should also realize that those small scale
farmers, who are the worst sufferer of liberal agro-economy, can be made a key to the solution of food crisis. The
agricultural sector of India is mainly covered by small and marginal farmers, so our government should promote small
scale agriculture. Besides, the agriculture sector should be solely covered by the public sector from investment up to
marketing and distribution. Even if there is any kind of corporate investment, that should be properly regulated by the
public authorities.
ENDS