Investments In Agri Sector Would Reduce Hunger Threat

MUMBAI: Investment in agriculture, improved bio-energy and trade policies and programmes that target vulnerable people would reduce the threat of hunger in the coming years, International Food Policy Research Institute (IFPRI) said.

A moratorium on grain-based biofuels would quickly unlock these commodities for use as food. This measure might bring corn prices down globally by about 20 per cent and as a consequence, wheat prices may decrease by about 10 per cent, IFPRI Director General Joachim von Braun said today.

If biofuel production was frozen at 2007 levels for all countries and for all crops used as feedstock, maize prices are projected to decline by six per cent by 2010 and 14 per cent by 2015. Smaller price reductions are also expected for oil crops, cassava, wheat and sugar, he said in an IFPRI release.

Suggesting that there should not be export ban, Braun said a country that enacts measures such as agricultural export bans, high export tariffs, and price controls may reduce its risks of food shortages in the short-term.

However, these measures are likely to backfire by making the international market smaller and more volatile.

Export restrictions have harmful effects on import-dependent trading partners. For example, export restrictions on rice in India affect Bangladeshi consumers adversely and also dampen the incentives for rice farmers in India to invest in agriculture, he said.

Japan Approves Rs 7k Crore For Core Sector

Japan approved a Rs 7,074-crore long-tenure loan at low-interest to fund India''s infrastructure investments, its second batch of assistance for the fiscal. Now, the Japan''s total assistance stands at Rs 8,582 crore, 21% more than last year''s, the government said in a statement issued here quoting finance minister P Chidambaram.

This is the biggest development loan commitment from Japan to India, the highest recipient of such assistance from Japan. The release also said this year''s package includes projects that are important to India, such as Delhi Metro, Kolkata east-west link, Hyderabad outer ring road and Tamil Nadu urban infrastructure development projects. The inclusion of Hogenakkal Water Supply and Flurosis Mitigation Project in the package fulfils a long-standing demand of the people of Tamil Nadu. The statement also said that in the last few years, relations between India and Japan have steadily progressed. India is now negotiating a comprehensive economic partnership agreement (Cepa) with Japan which is expected to further boost ties between the countries.