Showing posts with label Food. Show all posts
Showing posts with label Food. Show all posts

Saturday, May 3, 2008

UN's Advisor Blamed Wrong-Headed Policies For Food Crisis

PARIS: The UN's new top advisor on food blamed two decades of wrong-headed policies by world powers for the food crisis sweeping the globe, in a stinging interview published on his first day in office on Friday.

Frenchman Olivier de Schutter, a law professor and human rights campaigner, told Le Monde newspaper the international community was "unforgivable" for its failure to anticipate the riots sparked last month by soaring food prices.

"This is a call to order. The days of cheap food are behind us," said the United Nations rapporteur on the right to food, arguing that the current crisis showed the "limits of industrial agriculture."

"We are paying for 20 years of mistakes. Nothing was done to prevent speculation on raw materials, though it was predictable investors would turn to these markets following the stockmarket slowdown."

Schutter said the World Bank and International Monetary Fund (IMF) had "gravely underestimated the need to invest in agriculture," and accused the IMF of forcing indebted developing countries to invest in export cash crops at the expense of food self-sufficiency.

Workers across Asia, where one billion people are now seriously affected by the food price surge, made food their May Day battle cry, with volatile crowds staging rallies in the Philippines, Indonesia, Singapore and Bangkok.

Experts blame the soaring prices on a confluence of factors, including trade restrictions; increased demand from a changing diet in Asia; poor growing weather; rising use of biofuels that rely on staples like corn; and the hike in fuel prices that make transporting foodstuffs more expensive.

Schutter joined the growing chorus accusing biofuels -- until recently cast as a miracle alternative to polluting fossil fuels -- of usurping arable land and distorting world food prices.

Billions of dollars have been poured into transforming corn, soy beans and sugar to ethanol and biodiesel to help wean rich economies from their addiction to fossil fuels, mainly in the United States, Brazil, Canada and Europe.

"The ambitious goals for biofuel production set by the United States and the European Union are irresponsible," Schutter charged.

He described the biofuel rush as a "scandal that only serves the interests of a tiny lobby" and called for a freeze on investments in the sector.

But he also distanced himself from the hardline stance of his predecessor in the UN post Jean Ziegler, who had called for an outright moratorium on biofuels, describing them as a "crime against humanity".

The rapporteur said it was vital to phase out "shameful" rich world farm subsidies, which he said represent an annual 350 billion dollars, but gradually to avoid driving up prices for buyers in the developing world.

And Schutter took aim at the giants of the agri-business world -- such as US firms Monsanto or Dow Chemicals -- which hold patents on many of the world's most used seeds, fertilisers and pesticides.

"We need to think about changing the intellectual property rules for these companies, whose profits are exploding," he said, arguing that many products were currently priced beyond the reach of small producers.

The World Bank said last month that the doubling of food prices over the past three years could push 100 million people in poorer developing countries further into poverty.

The World Food Programme is appealing to donors for an extra 755 million dollars (487 million euros) to enable it to purchase enough food to meet its global commitments, while UN Secretary General Ban Ki-moon this week set up a new global task force to address the food crisis.

The UN food aid agency urged the US congress to speedily approve 770 million dollars in emergency food aid pledged by President George W. Bush.

Schutter said he was confident a coordinated international response between now and the autumn harvests would manage to avert famine.

Saturday, February 23, 2008

Food Subsidy Bill Likely To Hit Rs 30,000 Crore

NEW DELHI: The government may have finally cleared the whopping Rs 16,200 crore it owed in food grain buys by the rural development ministry to the Food Corporation of India (FCI) by issuing bonds.

The revised estimate for food subsidy bill alone in 2007-08 is pegged at Rs 30,000-crore odd. But owings to the FCI have not been accounted for traditionally under this head. In effect, although dues to from a government ministry other than Food to the FCI are government spends, they were however not been accounted for under any Budget head but nonetheless have, the potential to impact on fiscal deficit.

The RD ministry still owes the food grain procurement major Rs 10,700 crore. The finance ministry had assured the food ministry that these dues would be settled, too, but failed to spell out a timetable or even the method of settlement: bonds or cash.

A good chunk of the already pending dues to the food grain major from the rural development ministry as well as other departments, totalling a huge Rs 16,200 crore, was settled earlier by the finance ministry through issue of bonds. The bonds were issued in three tranches: the first two tranches in end 2006 totalled Rs 10,000 crore; a third tranche was released in mid-February 2007 for Rs 6,200 crore. They bore a coupon rate of 8.03% to 8.23%.

No bonds were issued to the FCI in the current year, 2007-08. Instead, the RD ministry paid up Rs 950 crore from its budgetary allocation for the year, towards settling dues for welfare programmes run by it that used food grains extensively.

Meanwhile, however, the RD ministry ran up more bills totalling Rs 10,000 crore. In addition, interest on pending dues kept piling up to total a stifling Rs 700 crore plus. “Rs 10,000 crore plus was pending on the principal amount owed to us by the RD ministry alone. The rest of the dues are purely built up interest on the principal,” sources pointed out.

There’s a silver lining to the annual intra government food spend from now on, though. From 2008-09, the SGRY (the special component under the Sampoorna Grameen Rozgaar Yojana) is expected to be wound up to make way for the countrywide implementation of the National Rural Employment Guarantee Programme (NREGP). That would bring the food grain dues from RD down substantially, all the more since the payment by food grain option under the NREGP was removed.

Some indications that dues pending under this head will go down noticeably was already there this year. Food grain bills run up by the SGRY totalled a marked Rs 3,000 crore in2003-04. In 2007-08, though, those dues went down to only Rs 1200 crore.

Monday, January 21, 2008

Food Prices A Challenge: Kamal Nath

NEW DELHI: Commerce Minister Kamal Nath said on Monday that high global food prices posed a challenge to economies around the world, and nations needed to work together to tackle the problem.

"World food prices are a challenge. Wheat has doubled, edible oil prices have nearly doubled. It is this challenge that the east and the west must come together to address," Nath told a meeting of Indian and British businessman.