A PRESENTATION BY ARNAB MUKHERJEE

FOOD SECURITY BILL,2011

FOOD SECURITY CHALLENGE-AMARTYA SEN’S VIEW

POVERTY AND FAMINES-AN ESSAY ON ENETITLEMENTS AND DEPRIVATION

BASIC HUMAN NEEDS APPROACHCONSIDERS ENTITLEMENT AS A WAY

TO EMPOWERMENTCONSIDERS DEMOCRACY TO BE A

CURE OF ENTITLEMENT FAILURESUGGESTS THAT FAMINES DON’T

ALWAYS OCCUR DUE TO FOOD SHORTAGE

THE WASHINGTON CONSENSUS

COINED BY JOHN WILLIAMSON BASED ON PERCOLATION EFFECT SUGGESTS FREE TRADE,OPEN

MARKETS AND DECONTROL OF PRICES AS MEANS TO ERADICATING POVERTY

FOCUSES ON AUTOMATION OF AGRICULTURAL PROCESSES

GAINED SUPPORT FROM BILL CLINTON AND THUS WASHINGTON BASED INSTITUTIONS LIKE IMF & WORLD BANK

MALTHUSIAN THEORY

PROPOSED BY ROBERT MALTHUSSUGGESTS THAT ECONOMIES GO

THROUGH PHASES OF DEMOGRAPHIC TRANSITION

ASSERTS THAT FOOD PRODUCTION INCREASES IN ARITHMETIC PROGRESSION BUT POPULATION INCREASES IN GEOMETRIC PROGRESSION

RELIES ON ‘ECONOMIC NATURALISM’

REASONS FOR FOOD INSECURITY IN INDIATARGET AUDIENCE OF PDSASSYMETRY OF INFORMATIONMISGOVERNANCE AND CORRUPTIONSUPPLY CHAIN ISSUESPOPULATION EXPLOSION INEFFICENT MARKET SYSTEM

LEADING TO DEVIATION FROM OPTIMAL OUTCOMES

ASSYMETRY OF INFORMATION

FAMINE VERSUS FOOD SHORTAGEFAULTY SURVEYSSTATIC IDENTITY DOCUMENTATIONMYOPIA IN TREATING INCOME AS THE

ONLY INDEX OF ENTITLEMENTLIMITED REACH OF MEDIADIGITAL DIVIDE

MISGOVERNANCE AND CORRUPTION

FAULTY AND TIME CONSUMING BUREAUCRATIC PROCESSES

REACTIVE GOVERNANCE FABRICATED SOCIAL AUDITSNON REPORTING OF CASES OF

CORRUPTION INEFFICIENT JUDICIARY SYSTEMRESTRICTED DEMOCRACYFOOD ADULTERATION

SUPPLY CHAIN ISSUES

LACK OF TECHNICAL KNOW-HOW ABSENCE OF COLD CHAINS AND COLD

STORAGES INEFFICENT NETWORK OF

WAREHOUSESBAD TRAFFIC MANAGEMENT SYSTEMSFAULTY FORECASTING MODELSSMALL SCALE OF OPERATIONS OF

FARMERS

INEFFICIENT MARKET S

PRICE DIFFERENTIAL BETWEEN DOMESTIC AND GLOBAL MARKETS LEADING TO EXPORTS OF FOOD CROPS

ADVERS TERMS OF TRADE IN FOOD IMPORTS DUE TO LOW BARGAINING POWER

LOW INCOME ELASTICITY OF DEMAND DUE TO ENGEL’S LAW

ABSENCE OF MINIMUM SUPPORT PRICES FROM CENTRAL AND STATE GOVERMENTS

BULK PURCHASES BY BROKING HOUSES FOR COMMODITY TRADING

POPULATION EXPLOSION

INCREASE IN AGGREGATE EFFECTIVE DEMAND FROM APL HOUSEHLDS

FRAGMENTATION OF LAND AND LAND CEILING ( C.HANUMANTHA RAO &ASHOK RUDRA)

RURAL TO URBAN MIGRATION LEADING TO HIGHER WAGES AND LOW PRODUCTION OF FOOD CROPS ( KAUSHIK BASU & DEBRAJ ROY)

DISGUISED UNEMPLOYMENT IN PRIMARY SECTOR ( RAGNAR NURKSE & AMARTYA SEN)

FACTORS AFFECTING FOOD SECURITY

ASSUMPTIONS ABOUT GROWTH OF THE ECONOMY

DISTRIBUTION OF INCOMEPOSSIBILITY OF DEALING WITH

ENVIRONMENTAL CHALLENGESPOLITICAL WILL AND LOGISTICAL

CAPACITYGOVERNMENT EXPENDITURE ON

RESEARCH & DEVELOPMENT FOR TECHNOLOGICAL PROGRESS)

SIX DIMENSIONS OF FOOD SECURITY ( FAO)

FOOD AVAILABILITY FOOD ACCESS FOOD STABILITY UTILIZATION TEMPORAL DIMENSIONS - CHRONIC &

TRANSITORY

BOTTLENECKS IN GLOBAL FOOD SECURITY

INCREASING DEMAND FOR BIO FUEL AND THE COMPETITION BETWEEN FOD CROPS AND BIO FUEL CROPS

ENVIRONMENTAL CHALLENGES LIKE SOIL,AIR AND WATER POLLUTION

WORLD ECONOIMC CRISES LEADING TO FLUCTUATIONS IN PURCHASING POWER OF URBAN CONSUMERS AND HIKE IN RELARIVE PRICES OF FOOD

FAST FACTS ABOUT HUNGER

925 MILLION WERE UNDERNOURISHED IN 2010

ROUGHLY 14 PERCENT OF WORLD’S POPULATION CONSISTING OF 6.8 BILLION PEOPLE

2 BILLIO UNDERNOURISHED DEVELOPING ECONOIMES AT THE

RECEIVING END INDIA’S RANK IN TERMS OF HUMAN

DEVELOPMENT INDEX -124

COSTS OF MALNUTRITION

ELIMINATION OF CHILD MALNUTRITION IN INDIA WOULD INCREASE NATIONAL INCOME BY US $ 28 BILLION !

THIS IS MORE THAN ITS COMBINED EXPENDITURE ON NUTRITION,HEALTH AND EDUCATION !!

CAUSES 10.4 MILLION DEATHS ANNUALLY

MALNOURISHMENT VERSUS UNDERNOURISHMENT

UNDERNOURISHMENT IS ASSESED USING CALORIE SPECIFIC DATA AND QUANTITY OF FOOD

HIGHER CALORIES DO NOT NECESSARILY MEAN HIGHER NUTRITION

MALNOURISHMENT FOCUSES ON QUALITY OF FOOD

MALNOURISHMENT IS HARDER TO MEASURE BECAUSE IT REQUIRES DATA ON PORTEIN AND MICRONUTRIENTS

THREE HUMAN POPULATIONS –THREE FOOD SECURITY SITUATIONS

LIVE STOCK DEPENDENT SOCIETIES

SMALL - SCALE MIXED FARMERS

CITY POPULATIONS

( FAO REPORT,2006)

LIVE STOCK DEPENDENT SOCIEITES

SOCIETIES IN WHICH ATLEAST 90PERCENT OF THE TOTAL VALUE OF FARM PRODUCTION COMES FROM LIVESTOCK AND MORE THAN 90 PERCENT OF DRY MATTER FED TO ANIMALS COMES FROM RANGELANDS , PASTURES AND ANNUAL FORAGES

CONTIRBUTION OF LIVESTOCK TO ECONOMY

CONTRIBUTES ONE THIRD OF GDP AND APPROXIMATELY 21 PERCENT OF EXPORT EARNINGS

CONTRIBUTES BETWEEN 50 AND 95 PERCENT OF THE INCOME OF PASTURAL FAMILIES ( AKLILU & CATLEY,2009)

PROVIDES 80 PERCENT OF MILK PRODUCTS FOR SELF CONSUMPTION

FEATURES OF LIVESTOCK DEPENDENT SOCIEITES

PRODUCTIVITY FROM EXTENSIVE GRAZING SYSTEMS LOW IN TERMS OF OUTPUT PER ANIMAL AND PER UNIT OF LABOUR BUT

HIGH IN TERMS OF OUTPUT FROM LIMTED RESOURCES( WATER & GRAIN)

OCCURS IN FRAGILE & CHALLENGING ECOLOGIES WHERE THERE ARE LIMITED PROSPECTS OF DIVERSIFICATION

SMALL -SCALE MIXED FARMERS

A MIXED FARM IS ONE WHERE MORE THAN PERCENT OF THE DRY MATTER FED TO LIVESTOCK COMES FROM CROP BY PRODUCTS & MORE THAN 10 PERCENT OF THE VALUE OF FARM PRODUCE COMES FROM NON LIVESTOCK ACTIVITIES.

(SERE & STEINFELD,1996)

FEATURES OF SMALL -SCALE MIXED FARMERS

FARMERS IN RURAL AREAS CREATE SYNERGY BY USING CROP RESIDUES TO FEED ANIMALS AND MANURE FROM ANIMALS TO FERTILIZE CROPS

DIFFERENT ENTERPRISES EXIST ON THE SAME SMALL FARM PLOTS

LOW INPUT,LOW OUTPUT SYSTEMS ARE EFFECTIVE IN USING WASTE , BUT POOR PRODUCERS OF FOOD OR INCOME

CHALLENGES

RESOURCE SCARCITYLAND FRAGMENTATIONDISEASE OUTBREAK & CONTROL

LEADING TO LOSS OF LIVESTOCKUNAVAILABILITY OF CHEAP DEBT CAPITALLABOUR INTENSIVE TECHNIQUE OF

PRODUCTION

CITY POPULATIONS

50 PERCENT OF WORLD POPULATION RESIDESIN URBAN AREAS (UNTPA,2007)

75 PERCENT OF THE POPULATION LIVE IN URBAN AREAS IN DEVELOPED COUNTRIES

29 PERCENT OF POPULATION LIVE IN URBAN AREAS IN DEVELOPING COUNTRIES

PEOPLE LIVING IN URBAN AREAS ARE PURELY CONSUMERS OF FOOD ,UNLIKE THOSE IN RURAL AREAS WHO BOTH PRODUCE AND CONSUME FOOD

FEATURES OF URBAN FOOD SUPPLY & DISTRIBUTION ( FAO,2001)

SUFFICIENT FOOD QUANTITY REQUIRES EFFICIENT TRANSPORTATION SYSTEM

FOOD DISTRIBUTION SYSTEM REQUIRES INVESTMENT BY THE PUBLIC AND PRIVATE SECTORS AS WELL AS LEGISLATIONS AND REGULATIONS

HEALTH & ENVIRONMENT SAFEGUARDS REQUIRE PROTECTION OF AIR AND WATER SUPPLY

HUMAN DEVELOPMENT INDEX

LIFE EXPECTANCY AT BIRTH

ADULT LITERACY RATE (2/3 WEIGHT) & COMBINED PRIMARY ,SECONDARY & TERTIARY EDUCATION ( 1/3)

STANDARD OF LIVING AS INDICATED BY NATURAL LOGARITHM OF PER CAPITA GDP AT PURCHASING POWER PARITY

HDI VALUES IN INDIA NATIONAL AVERAGE -0.647

WEST BENGAL -0.625 ARUNACHAL PRADESH -0.617 TRIPURA-0.608 JAMMU & KASHMIR -0.601 MEGAHLAYA-0.585 ANDHRA PRADESH -0.572 ASSAM-0.534 CHATTISGARH-0.516 JHARKHAND-0.513 UTTAR PRADESH -0.490 MADHYA PRADESH-0.488

HDI VALUE CONTD…

ORISSA-0.452 BIHAR-0.449 ( UNDP REPORT 2005)

MAOISM AFFECTED AREAS

BIHAR JHARKHANDWEST BENGALCHATTISGARH ORISSAANDHRA PRADESH

( SPEECH DELIVERED BY HOME MINISTER ON 19.07.2010 IN LOK SABHA)

SEPERATIST MOVEMENT AFFECTED AREAS

ASSAM ARUNACHAL PRADESH MEGHALAYA TRIPURA NAGALAND JAMMU & KASHMIR

FOOD SECURITY BILL - HIGHLIGHTS

COVERS ALL INDIA EXCEPT JAMMU & KASHMIR

TARGETS PRIORITY HOUSEHOLDS, THE POOREST 46 PERCENT IN RURAL AREAS & 26 PERCENT IN URBAN AREAS

ANOTHER 29 PERCENT OF RURAL & 22 PERCENT OF URBAN POPULATION TO BE TREATED AS GENERAL CATEGORIES

GUARANTEES 7KGs OF GRAIN TO PRIORITY HOUSEHOLDS & 3KGs TO GENERAL HOUSEHOLDS

CENTRAL GOVERNMENT SHALL PROVIDE THE FOLLOWING

FOOD GRAINS FREE OF COST TO STATES INCLUDING COSTS OF STORAGE & TRANSPORTATION

ADMINSTRATIVE EXPENSES OF A MINIMUM OF 6 PERCENT

70 PERCENT OF ANY OTHER COSTS

BENEFITS

SHALL REDUCE MALNOURISHMENT & UNDERNOURISHMENT

SHALL REDUCE INFANT MORTALITY RATE PUSH INDIA TOWARDS THE MILLENIUM

DEVELOPMENT GOALS SHALL CUSHION THE POOR FROM FOOD

INFLATION PROVIDE MINIMUM SUPPORT PRICE TO

FARMERS AND HECE REDUCE FARMER SUICIDES

PROMOTE PREVENTIVE HEALTH CARE

BENEFITS CONTD…

COUPLED WITH NREGA ,CREATE CONSUMER MARKET IN RURAL AREAS

INCREASE THE SPEED OF ECONOMIC DEVELOPMENT AND THUS REDUCE “ WAR AGAINST THE STATE”

SAVE AN ESTIMATED US $ 28 MILLION AS COSTS OF NUTRITION,HEALTH & EDUCATION ANNUALLY

COSTS

A WHOOPING RS 3,00,000 CRORE RUPEES REQUIRED

CORPORATE INCOME TAXES & OTHER TAX RATES WOULD HAVE TO BE INCREASED

MAY REQUIRE EXTERNAL DEBT BORROWING & INTERNAL BORROWING FROM RBI AS WELL

SHALL AFFECT INVESTOR SENTIMENT DRASTICALLY DUE TO CROWDING OUT EFFECT

SHALL LEAD TO HIKE IN FISCAL DEFICIT & FISCAL PROFLIGACY

CONCLUSION

“ WEALTH IS NOT WHAT WE ARE SEEKING”

(ARISTOTLE)

& “ IF YOU ARE ONLY THNIKING OF

ECONOMIC GROWTH IGNORING LIFE IT SELF THEN IT REFLECTS A POVERTY OF AMBITION”

( BARRACK HUSSAIN OBAMA)

THANK YOU

”THIS WAS SOME FOOD FOR THOUGHT.

NOW , YOU MAY HAVE YOUR FOOD.’’