Global Financial Crisis & Food Security + Climate Change + South Asia & Food Security

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NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development

 

 

1. Global meltdown to have a negative impact on food security

2. 'India can lead the battle against climate change' - UN chief

 

3. South Asia all set to operate its food bank

 

4. SAARC agriculture vision document on the anvil

 

5. Saarc stresses on food, energy security

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Global meltdown to have a negative impact on food security

 

http://www.financialexpress.com/news/global-meltdown-to-have-a-negative-impact-on-food-security/379640/0 ASHOK B SHARMAPosted: Oct 29, 2008 at 0226 hrs ISTUpdated: Oct 29, 2008 at 0226 hrs IST

 

Food security usually becomes the casualty in the event of any crisis, be it financial or political. It is not unusual for the recent global financial crisis to invite concerns from ogranisations like FAO and other food policy groups.

 

The global meltdown in the financial and equity markets follows hard on the heels of soaring food price and energy crisis caused primarily on account of intensified bio-fuel programme. The global commodity prices, though still ruling high, has marked a dip due to good harvest in the current season. According to the latest issue of FAO's Crop Prospects and Food Situation report, global grain production this year is forecast to increase 4.9% to a record 2,232 million tonne. However, some 36 countries are still in need of external assistance as a result of crop failures, conflict or insecurity or continuing local high prices, the report noted.

 

Commodity prices have dipped in recent times as investors have apprehended recession. Wheat futures for December delivery closed at $5.1625 on Friday—down 62% from a record set in February. Corn futures dipped 53% from their all-time high and soybean futures registered 47% lower.

 

Commodity prices are currently declining, mainly on the expectation of favourable crop prospects but also due to the threat of a global recession. The FAO director-general, Jacques Diouf fears that borrowing, bank lending, official development aid, foreign direct investment and workers' remittances may be compromised by a deepening financial crisis. The impact of the financial crisis may also be felt in developing countries at the macro level with potentially negative impact on agriculture and food security. The falling grain prices may cause lower investment in agriculture and shrinkage in crop area and reduced harvest in major exporting countries. Given the low grain stock, this situation can lead to another turn of record high food prices next year.

 

According to FAO, 923 million people were seriously undernourished in 2007. Oxfam estimated that soaring food prices had pushed an extra 119 million people into hunger. The former UN secretary general, Kofi Annan has rightly warned the world leaders that global financial crisis should not be used as an excuse for inaction in the worsening battle against wrenching hunger across the developing world. The world now has the responsibility of fulfilling the Millennium Developmental Goals (MDGs) by lifting nearly one billion people out of poverty, who do not have enough food to eat on a day-to-day basis.

 

Despite the writing on the wall the world leaders have expressed scant regard for food security problem. Only $12.3 billion had been pledged by nations in Rome earlier this year for meeting the emerging food security problem, out of which $1 billion has been disbursed. Comparatively, the response to the current financial crisis was quick and prompt. The US administration has planned a $700-billion bailout package for its ailing financial sector. Governments and central banks across the globe are infusing billions of dollars into the system and cut in interests rates is being contemplated with a view to revive the ailing economy. Had the world leaders thought of infusing such an amount for directly eliminating poverty the MDGs could have be achieved at ease.

 

At the sidelines of the 7th Asia-Europe Meeting (ASEM) in Beijing last week, China, Japan and South Korea decided to speed up the establishment of a $80-billion fund to fight off currency speculators. The ASEM+3 decided to have a meeting of their finance ministers and central bank governors in Manila next month to finalise concrete proposals for handling the financial crisis, which would be discussed at the summit meeting in Bangkok in December, this year.

 

A study made by Merrill Lynch & Co under the team leader Francisco Blanch shows that such an attempt being made to restore artificial health to the ailing economy may fuel inflationary trend in prices – a situation likely to have adverse impact on food security.

 

Subprime meltdown, downturn in the equity market, intensification of bio-fuel programme leading to use of food for fuel and consequent rise in food prices, speculation in commodity futures, fluctuations in currency exchange rates, the threat of recession, increasing corporate monopoly over the farm sector and willful distortion in global farm trade have collectively endangered food security.

 

This is the time to think of an alternative model of development as several experts have pointed out. The United Nation's latest World Economic and Social Survey (WESS) released a week before the G8 Summit has noted that the belief in the self-regulating market was no longer credible. Hope the current global crisis would lead to a new order.

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'India can lead the battle against climate change'

 

http://www.financialexpress.com/news/india-can-lead-the-battle-against-climate-change/379378/0 ASHOK B SHARMAPosted: Oct 30, 2008 at 1922 hrs ISTUpdated: Oct 30, 2008 at 1922 hrs IST

 

New Delhi, Oct 30 : The UN secretary general Ban Ki-moon has urged for a trilateral partnership of government and inter-governmental agencies, business houses and civil society organization to combat the impact of climate change.

 

He noted India had the potential to give leadership in the area of combating the effects of climate change. Many Indian companies have joined the global initiative under the umbrella of World Business Council on Climate Change (WBCCC).

 

Speaking to the CEOs of TERI-Business Council for Sustainable Development in Capital on Thursday, Ki-moon said, "The current financial crisis may cause credit squeeze and may have a direct impact on public policies. It may reverse some of the initiative made for the poor. High growth rate has helped India and this need to be sustained."

 

Voicing concerns for the poor who feel the burnt of climate change, he said, "I am going to be the voice of the voiceless and defence of the defenceless."

Ki-moon said that government policies should aim at an ambitious sealing on emissions, new technology for the developing world, putting in place right renewable energy targets in key areas and investment in R & D.

 

He also called for voluntary efforts on the part of corporate houses and a development of a corporate norm for building a green economy compatible with development.

 

Ki-moon is slated to meet the Prime Minister, Manmohan Singh and cabinet ministers and top government officials.

 

He stressed the need for generating awareness and educating people to change their life styles that have contributed to climate change. The TERI director-general, RK Pachauri stressed the need to lessen consumption of meat.

 

Ki-moon supported the developing countries position and said that in matters of combating climate change the principle of 'common and differentiated responsibility' should continue.

 

He stressed the need for transfer of technology and finances from the developed world and urged the industrialized nation to strengthen the Adaptation Fund. These, he said needs to be finalized before the Copenhagen conference on climate change slated by the end of next year.

 

The CMD of PTC India Ltd, Tantra Narayan Thakur alleged that CMD mechanism was very cumbersome to get the desired benefits. The chairperson of TERI-BCSD India, Nitin Desai said, "The attitude of the developed world towards CMD is not encouraging." The chairman and vice-president of Mahalaxmi Energy Project Pvt Ltd, Y Harish Chandra Prasad alleged that there were no incentives to coal-based power plants in the country for their efforts to reduce coal consumption.

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South Asia all set to operate its food bank

 

http://www.financialexpress.com/news/south-asia-all-set-to-operate-its-food-bank/378220/0 ASHOK B SHARMAPosted: Oct 27, 2008 at 2324 hrs ISTUpdated: Oct 27, 2008 at 2324 hrs IST

 

Kathmandu, Oct 26 : South Asia is likely to witness the operation of its Food Bank, as the region's agriculture ministers are planning to meet in Delhi early next month to formulate the Regional Agriculture Perspective and Vision-2020.

 

The region's agriculture ministers would also consider the setting up of a milk grid for the region as part of the broader issues relating to the dairy sector.

 

As per the directives of the 15th summit in Colombo in August, this year, the South Asian Association for Regional Cooperation (SAARC) has done the last critical mile in terms of putting the region's food bank scheme into operation. The idea of a SAARC Food Security Reserve was first conceived way back in 1987 with a reserve of 2,41,580 tonne of wheat and rice, but the scheme could not take off the ground. Learning from the failure, the region's leaders agreed to set up a South Asia Food Bank at the 14th SAARC Summit in Delhi in April 2007, the modalities of which were finalised at the 15th SAARC Summit in Colombo in August, this year.

 

The SAARC secretary general, Sheel Kant Sharma said, "The SAARC Food Bank's board met for the first time in Colombo in October 15-16, 2008 and finalised the modalities for determination of price on FoB basis, arranging deferred payments by the requesting country, exemption from regulatory duties by the releasing country and release of food stock from facilities closest to the requesting country."

 

The contribution by each member country to the SAARC Food Bank has been fixed, with India's share being the largest at 63.42%, followed by Bangladesh and Pakistan with 16.58% each, Sri Lanka and Nepal with 1.66% each, Maldives with 0.08% and Bhutan with 0.07%. Afghanistan's contribution is fixed at 1,420 tonne.

 

A meeting of the South Asia Civil Society Forum convened by the Nepal-based South Asia Watch on Trade, Economics and Environment (SAWTEE) last week has suggested to the SAARC Secretariat the ways for simplifying the operation of the food bank.

 

This would be the region's second experiment with institutional food security after the failure of the SAARC Food Security Reserve due to its complicated process and hard conditions. One of the main reasons for the failure was the balance of payment crisis afflicting the region.

 

The newly proposed SAARC Food Bank has put in place simplified procedures and proposed release of stocks for meeting the production or buffer shortages in member countries, apart from meeting the emergencies arising out of severe and unexpected calamities. Member countries can ask for release of stock if their annual foodgrain production falls by 8% over the three-year average. However, exceptions can be made for seasonal shortfall. The bank has provisions for involvement of the private sector at nodal points of transactions.----

 

SAARC agriculture vision document on the anvil

 

http://www.financialexpress.com/news/saarc-agriculture-vision-document-on-the-anvil/378221/ ASHOK B SHARMAPosted: Oct 27, 2008 at 2325 hrs ISTUpdated: Oct 27, 2008 at 2325 hrs IST

 

Kathmandu, Oct 26 : The South Asian agriculture ministers are slated to meet in Delhi early next month to discuss the problems facing the region's farm sector and farmer.

On the agenda for discussions are issues for formulating a common Regional Agriculture Perspective and Vision-2020, setting up of a milk grid, use of bio-fertilisers and bio-pesticides with a view to check the growing menace of toxicity in food, as well as preserving soil health.

 

The conclave will also discuss the need for boosting production and productivity of orphan food grain crops like pulses and coarse cereals. The vision document is likely to aim at securing distributional challenges in the farm sector and securing opportunity for value-added products

 

Speaking with FE, the SAARC secretary general, Sheel Kant Sharma said, "The last SAARC Summit adopted the regional strategy and programme and also, to take the process forward, 10 priority projects have been identified to respond to the critical challenges facing the region. All these are reflective of the concerns at the grassroots, afflicting lives and livelihood of millions of our farmers like arresting soil degradation, food safety, post- and pre-harvest management of farm produces."

 

The SAARC farm ministers would discuss the need to ensure nutritional security and boosting livestock, fishery and horticulture sectors. The South Asian ministers would discuss the challenges posed by new and emerging pests and diseases on crops and the incidences of avian flu in poultry and other animal diseases.

 

"Of great importance therefore is not to consider the entire question of food security merely as a function of external fluctuation in prices. There remains a complex interplay of a large number of factors, which quite often are fuelled by speculation," the SAARC secretary general said. -----

 

Saarc stresses on food, energy security

 

http://www.financialexpress.com/news/saarc-stresses-on-food-energy-security/344108/0 ASHOK B SHARMAPosted: Aug 04, 2008 at 2317 hrs ISTUpdated: Aug 04, 2008 at 2317 hrs IST

 

In a situation where the world is facing twin problems of food and energy security, the homogenous group of countries in South Asia is gearing up to meet the challenge in its humble way.

 

Rise in prices of essential commodities today is a global phenomena, caused largely due to competition between food and fuel. Price inflation is coming in the way of developing countries achieving a desired rate of economic growth necessary for augmenting employment opportunities and creation of wealth.

 

The South Asian Association for Regional Cooperation (Saarc) consisting of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka in its two-day 15th summit, which concluded in Colombo on Sunday, deliberated on these vital issues apart from the problem of tackling terrorism in the region.

 

The $300 million Saarc Development Fund and Saarc Food Bank are the mechanisms available for dealing with the issues. The most important point stressed by the Saarc leaders on the opening day of the summit was on exploitation of resources in the region. Prime Minister Manmohan Singh said, “The countries in South Asia need to work towards a collective response that leads to a quantum leap in agricultural productivity, foodgrain output and farm incomes so that the crises of food vanishes from our region.â€

 

On energy security Pakistan Prime Minister Yousuf Raza Gilani said harnessing the region’s indigenous energy potential, particularly solar, wind, biomass and hydro energy was needed. He said, “We should also envisage a network of intra-regional and trans-regional oil and gas pipelines.â€

 

The most important approach to food security in the region cannot be ensured through competition, but through cooperation. What is more needed is to understand the food and dietary habits of people in each of the geo-climatic zones in the countries of South Asia. The Saarc region is vast with pockets of diverse geo-climatic regions. Yet similarities exist amongst the countries in the region with many matching geo-climatic conditions like wetlands, arid zones, semi-arid zones, hot and cold deserts, coastal zones, hilly areas, forests with distinct cropping patterns and food habits.

 

It will not be wise to substitute food habits in some areas through mono staples like wheat and rice or through fast foods. People in many dryland areas consume various millets as staples which are nutritious and do not require nutrition supplements like pulses and lentils which are costly for the poor. The Green Revolution did increase the production of wheat and rice in the region, but marginalised the cultivation of many coarse cereals in the dryland areas. The cultivation of water intensive crops like paddy and sugarcane in relatively dry areas have caused ecological and water scarcity problems.

 

To tackle the situation the Planning Commission in India has called for state-specific, region-specific cropping pattern and measures for addressing the food security problem. The 11th Plan has also proposed for diversification into horticulture, livestock, poultry, fisheries in areas where it is feasible and warranted. The Indian Council of Agricultural Research (ICAR) has been asked to identify crops and livelihood options specific to each region for necessary technological intervention for improvement. This agenda has been incorporated in the recently launched India’s National Food Security Mission.

A separate and effective food security and livelihood options need to be proposed for the forest dwellers, in particular.

 

The ICAR in its recent document--State-specific Technological Intervention for Higher Agricultural Growth--has proposed improved seeds, resource conservation technologies, vermin-composting, crop diversification, mushroom cultivation, honeybee farming, livestock and poultry, fishery, post-harvest management and value-addition suited to each of the regions.

 

Incidentally many of the technologies and interventions proposed some specific regions in India can be applied to other countries in South Asia like situations in Andaman & Nicobar Islands can match with that in the Maldives and Sri Lanka to an extent. The conditions in Sikkim and northeastern India are similar to that in Bhutan and Nepal. Bangladesh bears a lot of similarity with West Bengal in India and also the conditions in Pakistan are similar to that in northwestern India. It is thus a situation of sharing each others experiences.

 

Regarding, energy security the Pakistan prime minister, Yousuf Raza Gilani has rightly stressed the need for harnessing the region's potential for renewable power. The South Asia region has a vast potential for harnessing power from solar, wind, biomass and wastes, small hydro-system sources. Besides there are on-going research programme for use hydrogen, tidal wave and geo-thermal sources for generating energy for commercial use.

 

The most effective way for ensuring energy security in a country can be done through decentralized system of generation and distribution. Power generation from new and renewable sources and its distribution can be most effective in a decentralized system. Dependence on a sole source of energy would not be wise. The South Asian region needs to go for not only a decentralized system of power generation and distribution but for a proper mix of energy sources. This approach would help the region in ensuring energy security without committing the blunder committed by the countries in Europe and North America in going for largescale bio-fuel programme which has caused competition between food and fuel and has invited the current food crisis.--------

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