Phenomenal Rising of Prices - # of hungry ones exceed 1 bn!

[app_engine]

Of late, it looks like this is one of the topics focussed in Indian media. Many reasons are cited - inflation, salary increases, traders' usual pathukkal gimmicks, on-line trading (speculative pricing being one aspect) and why, even the use of ethanol for fuel in NA. We also read about the helplessness of political powers and often attempts to divert the attention of the public from where really the problem lies. Some politicians even went on record to state that increase in prices won't hurt if there's corresponding increase in wages as well:-)

What are the facts? Are prices escalating? If so, what are the reasons and whether it's good or bad for the country's economy? Where it will lead to?

[joe]

It seems this is a global crisis ...Here in singapore 5 kg rice pack reached 10 dollors ,it was 5.50 dollors just 2 months ago

[ajithfederer]

One of the main drivers of inflation should be the increase of gasoline prices. It has increased from 38$ a barrel in 2004 to 102$/ barrel in 2008 :oops:

Guys like PR can throw in more light into the issue :D

[app_engine]

Obviously, gas prices is one important reason (as not only absolute transportation costs go up but also the spiralling effect).

With demand for gas in U.S. lower than previous year, what are the reasons for gas price going up? Are the sources drying off?

[ajithfederer]

http://www.thehindubusinessline.com/2008/04/24/stories/2008042450170800.htm

True economic costs of a war

Although this news is not directly related to the topic it does have some relevance

[app_engine]

Excellent link, ajithfederer! War results in cost increases, no doubt about it. I think historically, the third reich was a product of the huge depression that Germany faced post-WW I.

The economy today I think is more global with many corporations having worldwide operations and banks too having lot of international dependencies. This may mean price increases worldwide, even though few countries are directly involved in the wars.

[crazy]

one of the reason for high food price is chinese people eating meat and driving car :? naan sollala innikku kaalaiyil oru news channel sollittu irunthaanga :roll:

[ajithfederer]

Nandri :)

Excellent link, ajithfederer! .

[kannannn]

http://www.thehindubusinessline.com/2008/04/24/stories/2008042450170800.htm

True economic costs of a war

Although this news is not directly related to the topic it does have some relevance
:thumbsup: I think the next president has quite a nice surprise in wait. Talk about change - from euphoria to panic :lol:

A main reason for increasing food prices is the large scale conversion of food producing farm lands to bio-fuel producing lands. Global Research has a nice article about it:
http://globalresearch.ca/index.php?context=va&aid=6407

[dev]

one of the reason for high food price is chinese people eating meat and driving car :? naan sollala innikku kaalaiyil oru news channel sollittu irunthaanga :roll:

:lol: Nalla joke!!!... Developed countriesla wastage-a kuraichaale paadhi prechnai solve aagidum...

[app_engine]

Like Joe said, it appears to be a global phenomenon.

People may not feel the escalation of prices for food items -as much as in the case of gas- here in U.S. (as their spending on grocery is a very small percentage of income). Still the increase has started getting noticed.

I heard there was a docu on public TV on this which told that Costco and Sam's club are limiting the # of rice bags to 3 per customer (which is very unusual) indicating that people are trying to grab more fearing there is going to be a significant price increase.

Ofcourse the Indian stores here are much smarter - they only needed to hear such news and the next day price of "sona masoori" rice has shot up from around $12 to $20 per 25lb bag.

[app_engine]

http://www.kumudam.com/magazine/Kumudam/2008-04-30/pg1.php

அருமையான தலையங்கம். (இதனால் ஒன்றும் நடந்து விடப்போவதில்லை என்பது வருந்தத்தக்க உண்மை)

[app_engine]

One thing if we notice, earlier the media used to blame the union budget for price increases. Nowadays, the budgets are all "no-tax-increase" kind of "dream" budgets, while prices escalate. Finally the era of "smart" finance ministers has arrived, I think.

[gaddeswarup]

I am not an expert or an economist. I tried to follow since I come from farming background. Here are a few links, some of them are more about rice than general foods or commodities.
BBC has a nice summary:
http://news.bbc.co.uk/2/hi/in_depth/7284196.stm
Esther Duflo of Poverty Lab:
http://www.voxeu.org/index.php?q=node/1085
She emphasizes insurance.
Andrew Leonard has several posts in:
http://www.salon.com/tech/htww/
These give many reasons. One point that they do not mention is waste in the food chain discussed by Madhukar Shukla in Alternative Perspective :
Since 1960 population doubled but rice production tripled. Not all the scarcity is due to over consumption; there seems to be lot of waste in the food chain from storage to throwing away prepared food like bread in stores.
The kind of services to farmers (mnimum guaranteed prices, infra structure etc) have not kept pace in India.
Another reason given by many is that speculators entered the market after the recent subprime problems.
Reports say that stocks are low but production has not gone down that much, I think. Suggests hoarding. In India there have always been complaints about middlemen. Only about 7 percent of the rice produced is traded internationally. If the production has not really gone down, the problem may be with the hoarders. I do not have the numbers.
It is true that because of cash crops less land is used for rice. But uncertainity of yields, lack of insurance also seem to be the reasons. I have a met a couple of farmers who said that they converted rice fields to eucalyptus farms because of the uncertainity. Again, I do not have numbers.
Earlier, though in times of crisis, US helped, US, World Bank, IMF seem to have insisted on policies (insisting on privitization, lack of subsidies for small farmers in other countries particularly Africa) which have not helped. In addition Zimbawe, one of the big producers is near collapse.
The current crisis may induce governments in developing countries to encourage farming and develop infra structure. US has prposed to cut aid to agricultural research institutes like the one in Manila (M.S. Swaminathan was the director in the 80's). The amounts are not big, Perhaps countries like India can step in and provide aid. There are also developments in Africa about neglected food crops (SciDev. net has several articlse).
I get the impression that there are many reasons but none insurmountable.
This is all written in a messy way but I hope that some of the links will be useful.

[app_engine]

The first two links are great but I could not see the third one, asking for login...didn't have time to try registering:-(

Thank you gaddeswarup!

[ajithfederer]

Come last saturday, We bought a 40lb rice bag for 43$ !!. Your situation looks much better !

http://www.msnbc.msn.com/id/24334375/

I heard there was a docu on public TV on this which told that Costco and Sam's club are limiting the # of rice bags to 3 per customer (which is very unusual) indicating that people are trying to grab more fearing there is going to be a significant price increase.

Ofcourse the Indian stores here are much smarter - they only needed to hear such news and the next day price of "sona masoori" rice has shot up from around $12 to $20 per 25lb bag.

[gaddeswarup]

To app_engine above,
Registering at salon.com is free. It is also interesting to see the views of organization people in the field. Here is an interview with
Josette Sheeran, executive director of the U.N. World Food Program:
http://www.foreignpolicy.com/story/cms.php?story_id=4296
There is a comprehensive report from February from ODI blog:
http://blogs.odi.org.uk/blogs/main/archive/2008/02/29/5520.aspx
It has links to reports from International Food Policy Research Institute and US Department of Agriculture.
Another blog http://theautomaticearth.blogspot.com/
says on April 25th:
"Many farmers blame the growing influence of investment funds for distorting commodity prices. According to figures compiled by Gresham Investment Management, a commodities brokerage in New York, the amount of speculative money in commodities futures - that is, investors such as big funds that don't buy or sell the physical commodity but merely bet on price movements - was less than $5-billion (U.S.) in 2000. Last year, it ballooned to roughly $175-billion.

By some estimates, investment funds control 50 per cent of the wheat traded on the Chicago Board of Trade and Chicago Mercantile Exchange, the world's biggest commodity markets."
So, I guess that speculation and hoarding have a role.
I usually get many of the links from Mark Thoma's http://economistsview.typepad.com/
and Andrew Leonard. In Mark Thoma's blog 'Econmist's View', on the right there is a section "Things You Might Want to Read". It is a good source for many links.

[gaddeswarup]

After spending about seven weeks and talking to several farmersin Andhra, I posted in December last year and again January this year about a looming food crisis:
http://gaddeswarup.blogspot.com/2008/01/letter-to-bimol.html
But this is all a layman's feel rather than expert opinion.

[app_engine]

Come last saturday, We bought a 40lb rice bag for 43$ !!. Your situation looks much better !


FYI, on Saturday, the price at Patel brothers (Garden city, MI) was $16.99 for 25lb (limit 2 bags). At last, it looks like there is something for merchants to compete & play around / differentiate from other stores etc.

And it's a nice article on the msnbc link that you've posted. Gives a total, global picture!

gaddeswarup,
Thanks for the links and the insight. I really liked the analysis in the letter in your blog. The eucalyptus phenomenon reminds me of the 'coconut' phenomenon in TN a couple of decades ago when there was severe water crisis coupled with poor yield / prices for rice. Hope let's see brighter future for farmers, even though it may be far-fetched in today's economy to expect a situation where :

உழுதுண்டு வாழ்வாரே வாழ்வார் மற்றெல்லாம்
தொழுதுண்டு பின் செல்பவர் (திருக்குறள்)

(Rough translation of this famous Thamizh poem, written about 2K years ago : "Only farmers will have 'real' life while others will be begging after them")

[P_R]

>digr.>

First time I am reading the KuRaL but there is a couplet by AvvaiyAr that goes thus:

உழுதுண்டு வாழ்வாரே வாழ்வார்
பழுதுண்டு வேறோர் பணிக்கு

Quite pastoral and worth a muse and sigh everytime I read it.

[app_engine]

More digression -
While trying to proof-read my rendering of kuRaL, I stumbled on this link where they have the complete text:
http://www.cs.utk.edu/~siddhart/thirukkural/

And the chapter on agriculture is in this link:
http://www.geocities.com/dr_sidd_x/KURAL/ADHI/adhi_104.html
End-digression

Political parties typically pay more attention to such facts when elections are due. I think the price escalation issue will get a lot more attention and noise during the forthcoming union elections in India.

[ajithfederer]

http://www.hindu.com/thehindu/holnus/000200804291001.htm

"US, EU responsible for explosive food prices"

New York (PTI): The US and the European Union have taken a "criminal path" by encouraging use of food crops to produce bio-fuels and thus contributing to an "explosive rise" in global food prices, the UN Special Rapporteur on the right to food has said.

Jean Ziegler held fuel policies pursued by the US and the EU to be main causes for the current worldwide food crisis.

Last year the US used a third of its corn crop to create bio-fuels, while the European Union is planning to have 10 per cent of its need supplied by bio-fuels, he said and called for a for a five-year moratorium on the production of bio-fuels.

Ziegler also said that speculation on international markets was behind 30 per cent increase in food prices. Besides, hedge funds are also making huge profits from raw materials markets and called for new financial regulations to prevent such speculation.

The Special Rapporteur, in a press conference, warned of worsening food riots and a "horrifying" increase in deaths by starvation.

Meanwhile, speaking in Rome, a nutritionist with the UN World Food Programme (WFP), said that "global price rises mean that food is literally being taken out of the mouths of hungry children whose parents can no longer afford to feed them."

Andrew Thorne-Lyman said that even temporarily depriving children of the nutrients can leave permanent scars in terms of stunting their physical growth and intellectual potential.

Families in the developing world are "finding their buying power has been slashed by food price rises, meaning that they can buy less food or food which isn't as nutritious," he added.

[app_engine]

Karunanidhi writes self-formed Q&A to news media (as a replacement for press-interviews), periodically. Today he says the state and central Govt.s are taking action to control prices...

[app_engine]

ரைஸ் அம்மாவோட கண்டுபிடிப்பு:
http://www.hindu.com/2008/04/30/stories/2008043060461400.htm

[gaddeswarup]

The next problem may be fertlizers according to NY Times:
http://www.nytimes.com/2008/04/30/business/worldbusiness/30fertilizer.html?
Some links few weeks ago:
http://www.energybulletin.net/42635.html
Some Indian scientists suggested that latex sludge may be a usefulsubstitute for phosphorus:
http://a-c-s.confex.com/crops/wc2006/techprogram/P11584.HTM
but I do not know any later developments.

[app_engine]

Once again interesting links, thank you gaddeswarup!

The situation is grim, whichever way one looks at it:-(

[bingleguy]

"global price rises mean that food is literally being taken out of the mouths of hungry children whose parents can no longer afford to feed them."

:(

[app_engine]

http://www.ens-newswire.com/ens/may2008/2008-05-02-091.asp

Looks like some relief is on the way. Hopefully this is just an interim measure and those in powers think about some more measures to help on a medium-term basis. (I don't see any power today that can talk about real "long-term" solutions)

[app_engine]

புஷ் காமெடி:
http://dailythanthi.com/article.asp?NewsID=410443&disdate=5/4/2008

நம்ம ஊர் ஆளுங்களோட பதிலடி:
http://dailythanthi.com/article.asp?NewsID=410584&disdate=5/4/2008

It's always funny to see political powers distracting public from the real issue that nations are facing by gimmicky statements. Unfortunately, people currently have no choice but to live under such rulerships:-(

[gaddeswarup]

[tscii:5d0672f141] International Assessment of Agricultural Knowledge, Science and Technology for Development (http://www.agassessment.org/)(IAASTD) has issued comprehensive reports on agriculture. The reports"Executive Summary" and "Suggestions to Decision Makers" are both long and I have not read them completely. These seem to be the most comprehensive so far but I am not sure whether there is much chance of implementation. Australia, Canada and USA had resrvations. I am enclosing their press release on April 15 since I am not able to get the link right:
AGRICULTURE- THE NEED FOR CHANGE

WASHINGTON/LONDON/NAIROBI/DELHI - 15th April 2008. The way the world grows its food will have to change radically to better serve the poor and hungry if the world is to cope with a growing population and climate change while avoiding social breakdown and environmental collapse. That is the message from the report of the International Assessment of Agricultural Science and Technology for Development, a major new report by over 400 scientists which is launched today.

The assessment was considered by 64 governments at an intergovernmental plenary in Johannesburg last week.

The authors' brief was to examine hunger, poverty, the environment and equity together. Professor Robert Watson Director of IAASTD said those on the margins are ill-served by the present system: "The incentives for science to address the issues that matter to the poor are weak... the poorest developing countries are net losers under most trade liberalization scenarios."

Modern agriculture has brought significant increases in food production. But the benefits have been spread unevenly and have come at an increasingly intolerable price, paid by small-scale farmers, workers, rural communities and the environment.

It says the willingness of many people to tackle the basics of combining production, social and environmental goals is marred by "contentious political and economic stances". One of the IAASTD co-chairs, Dr Hans Herren, explains: "Specifically, this refers to the many OECD member countries who are deeply opposed to any changes in trade regimes or subsidy systems. Without reforms here many poorer countries will have a very hard time... "

The report has assessed that the way to meet the challenges lies in putting in place institutional, economic and legal frameworks that combine productivity with the protection and conservation of natural resources like soils, water, forests, and biodiversity while meeting production needs.

In many countries, it says, food is taken for granted, and farmers and farm workers are in many cases poorly rewarded for acting as stewards of almost a third of the Earth’s land. Investment directed toward securing the public interest in agricultural science, education and training and extension to farmers has decreased at a time when it is most needed.

The authors have assessed evidence across a wide range of knowledge that is rarely brought together. They conclude we have little time to lose if we are to change course. Continuing with current trends would exhaust our resources and put our children’s future in jeopardy.

Professor Bob Watson, Director of IAASTD said: “To argue, as we do, that continuing to focus on production alone will undermine our agricultural capital and leave us with an increasingly degraded and divided planet is to reiterate an old message. But it is a message that has not always had resonance in some parts of the world. If those with power are now willing to hear it, then we may hope for more equitable policies that do take the interests of the poor into account.”

Professor Judi Wakhungu, said “We must cooperate now, because no single institution, no single nation, no single region, can tackle this issue alone. The time is now.”

[/tscii:5d0672f141]

[app_engine]

ADB provides some assistance:
http://www.adb.org/Media/Articles/2008/12483-asian-food-crisis/default.asp
One stat from this news release:
More than 1 billion people in the region are seriously impacted by the food price surge as food expenditure accounts for 60% of total expenditure in the region. Food and energy together account for more than 75% of total spending of the poor in the region.

[gaddeswarup]

[tscii:4665224d50]More good news. From
http://blogs.cgdev.org/globaldevelopment/2008/05/kudos_to_tokyo_and_washington.php
Today in Tokyo, Japan's Vice Minister for Agriculture, Toshirou Shirasu, told reporters that Japan plans to export 200,000 tons of rice to the Philippines "as fast as possible." This confirmed sale comes on top of 50,000 tons of Japanese rice previously under discussion. Even the anticipation of these sales had done much to take the speculative steam out of over-heated global rice markets, as we reported towards the end of last week (see "Rice Prices Fall After Congressional Hearings But Crisis Not Over Yet"), so with some sales now officially confirmed we can hope to see further easing of speculative pressures.

The lightening-fast turn around in just one week since CGD released our policy note ("Unwanted Rice in Japan Can Solve the Rice Crisis--If Washington and Tokyo Act") reflects well on officials in Washington, who under WTO rules could have barred the re-export of rice previously imported from the U.S., and on officials in Japan, who faced their own internal obstacles but recognized the importance and urgency of action.

Wide attention to the issue clearly helped. Congressional testimony last Wednesday by Arvind Subramanian, a joint senior fellow at CGD and the Peterson Institute, before the House Committee on Financial Services alerted senior U.S. policymakers to the issue, as did questions from Sen. Robert Menendez about U.S. officials' response to our recommendations at a Senate Foreign Relations Committee hearing that same day. On Thursday, an AFP news report was picked up widely in Asia, and over the weekend further articles in newspapers in the U.K. and India helped keep up the pressure for prompt action. By Monday, Sebastian Mallaby's column in the Washington Post (“Rice and Baloney: Irrational Policies the World Over Are Making the Food Crisis Worse”) and an accompanying editorial cemented the case for the U.S. to acquiesce to Japanese sales.

[/tscii:4665224d50]

[app_engine]

gaddeswarup,

Great news!

No compassionate person can have a bigger priority than doing his / her best to feed a hungry person.

This news report once again proves that while the earth is capable of feeding the current population (may be even billions more), the political powers are denying such a basic right as food to millions of people. How sad:-(

[selvakumar]

[tscii:4ddc69bb09] UN warns about higher food costs (http://news.bbc.co.uk/2/hi/business/7424375.stm)

Higher food prices may be here to stay as demand from developing countries and production costs rise, says the UN's Food & Agriculture Organisation (FAO).

It warned that the current spike in global food prices was higher than previous records, partly because bad weather had ruined crops.

Although high prices will ease off, other factors, such as rising biofuel demand, will keep future costs high.

The FAO said speculators were also to blame for volatile commodity markets.

Soaring bills

The FAO's annual Outlook report predicted beef and pork prices might be 20% higher by 2017, wheat could be up to 60% more expensive and the cost of vegetable oils might rise by 80%.

World prices for wheat, maize and oilseed crops doubled between 2005 and 2007, and while the FAO expects these prices to fall, the decline may be slower than after previous spikes.

As well as key factors such as weather, supply and demand and energy costs, speculators are also to blame for making commodities prices more volatile, the FAO says.

It is also concerned about the increasing use of crops for biofuels.

"Biofuels are the largest new source of demand for agriculture and are causing higher prices," said Merritt Cluff, one of the authors of the report.

"We are very worried particularly about biofuel policy. US government incentives for ethanol producers are distorting the market," he added.

Looking ahead, climate change may also affect crop harvests, pushing up prices further.

But the hardest-hit by rising food costs will be the poorest people on the planet, where a large share of income is spent on food, the FAO warned.

"We are hugely concerned about the poorest and we expect the number of undernourished people to rise," said Mr Cluff.

The FAO believes the commodity boom has forced some in the developing world to spend more than half their income on food, particularly those countries that have to import much of their food.

Rising food bills have triggered protests, riots and panic buying in some developing countries. Earlier this month, the FAO calculated the amount of money being spent globally on importing food was set to top $1 trillion (£528bn) in 2008, a 26% rise on the previous year.

However, the food crisis could also shift the epicentre of global agriculture from developed to developing countries and the FAO predicts that emerging economies will dominate in the production and consumption of most basic foods in 10 years. [/tscii:4ddc69bb09]

[wrap07]

U.N. summit pledges to ease global food crisis

Delegates pledge to reduce trade barriers


ROME: World leaders at a U.N. summit embraced an ambitious strategy to combat a food crisis that is causing violent riots and threatening to push up to a billion people across the globe into hunger.

Delegates from 181 countries pledged on Thursday to reduce trade barriers and boost agricultural production to combat rising food prices, but some nations and groups maintained more concrete measures will be needed.

After three days of wrangling, delegates at the Rome-based U.N. Food and Agriculture Organisation approved a declaration resolving to ease the suffering caused by soaring food prices and step up investment in agriculture.

The summit struck a balance on the contentious issue of biofuels, recognising “challenges and opportunities” in using food for fuel.
Swift help


The declaration called for swift help for small-holder farmers in poor countries who need seed, fertilizers and animal feed in time for the approaching planting season. U.N. officials and humanitarian groups have pointed out that such an approach has already helped millions of farmers in Malawi, where food security has strongly improved thanks to a support package based mainly on a fertilizer subsidy.

U.N. Secretary-General Ban Ki-moon had told the summit that import taxes and export restrictions must also be minimised to alleviate hunger, and the document called for “reducing trade barriers and market-distorting policies”.

The strategy laid down at the Rome Summit would have to translate quickly into farm and trade policies in each country, as even before the crisis there were some 850 million undernourished people in the world, with the number increasing rapidly, according to senior U.N. officials.

Soaring fuel prices drive up costs of fertilizers, farm vehicle use and transport of food to market. — AP

http://www.hindu.com/2008/06/07/stories/2008060755081500.htm

[wrap07]

http://www.hindu.com/2008/06/02/stories/2008060255061000.htm

[app_engine]

wrap07, great link and a nice article!

The following passage reflects the sad truth:

====
It has become a trend in such conferences for heads of governments/states from Africa and other developing countries to participate in large numbers. In contrast, the industrialised countries tend to be represented either by their ambassadors in Rome or senior officials. It has also become customary in such large international political gatherings for developing countries to blame both rich countries and the WTO for not responding to their needs adequately and at the right time. The industrialised countries, in turn, stress that developing countries normally neglect their farmers and also exhibit a deficit in governance and surplus in corruption. At the end of the meeting, a few small gestures of immediate assistance will be forthcoming along with volumes of advice, but the long-term problems will remain under the carpet. The entire exercise, involving considerable expenditure, ultimately becomes a forum for photo opportunity and media cynicism. The poor nations and the poor in all nations will suffer most from the inaction associated with such a blame game.

====

Another good thing about the article is despite the sickening status as mentioned above, the final optimistic conclusion of the author.

[wrap07]

Thanks. :)
yeah. atleast there is some optimism and hope. I had read that the author himself is doing his bit towards the issue of food security and biodiversity.

[ajithfederer]

40 pound bag 60$ 2 days before :oops:


Come last saturday, We bought a 40lb rice bag for 43$ !!. Your situation looks much better !


FYI, on Saturday, the price at Patel brothers (Garden city, MI) was $16.99 for 25lb (limit 2 bags). At last, it looks like there is something for merchants to compete & play around / differentiate from other stores etc.

And it's a nice article on the msnbc link that you've posted. Gives a total, global picture!

gaddeswarup,
Thanks for the links and the insight. I really liked the analysis in the letter in your blog. The eucalyptus phenomenon reminds me of the 'coconut' phenomenon in TN a couple of decades ago when there was severe water crisis coupled with poor yield / prices for rice. Hope let's see brighter future for farmers, even though it may be far-fetched in today's economy to expect a situation where :

உழுதுண்டு வாழ்வாரே வாழ்வார் மற்றெல்லாம்
தொழுதுண்டு பின் செல்பவர் (திருக்குறள்)

(Rough translation of this famous Thamizh poem, written about 2K years ago : "Only farmers will have 'real' life while others will be begging after them")

[gaddeswarup]

See also the report by John Thompson on the conference from
http://www.ids.ac.uk/
titled 'Reflections on the High-Level Conference on World Food Security"
The draft recommendations seem to be consistent with some of Dr. Swaminathan's comments.
Again, as Dr. Swaminthan suggests, we may have to go for a mix of various new as well as trditional practices. Much to think about in his suggestions.

[wrap07]

http://www.iht.com/articles/reuters/2008/06/10/business/OUKBS-UK-FOOD-FERTILIZER-SHORTAGE.php

[gaddeswarup]

Related:
http://www.hinduonnet.com/fline/stories/20080620251210200.htm
What some govt. support,a good officer and co-op socities can do.
See also the interview with Mr. Angamuthu, Deputy Commissioner of KARBI ANGLONG
from the same issue.

[app_engine]

Solai (Kumudam Reporter) keeps writing on this topic week after week - mostly blaming PM, FM & US. One more here:
http://kumudam.com/magazine/Reporter/2008-06-19/pg6.php

There is tension building on local fronts as well for fertilizers -
http://kumudam.com/magazine/Reporter/2008-06-19/pg10.php

[gaddeswarup]

System of Rice Intensification (new to me). See
http://www.nytimes.com/2008/06/17/science/17rice.html?
A 2006 article about adoptations in India
http://www.cgiar-ilac.org/downloads/references/SRI_India_innovation_institutions.pdf

[wrap07]

http://www.hindu.com/2008/06/23/stories/2008062359510800.htm

[wrap07]

http://www.rediff.com/money/2008/jul/02food.htm


July 02, 2008 11:01 IST

Over 10 lakh (1 million) tonnes of food grains worth several hundred crores of rupees, which could have fed over one crore hungry people for a year, were damaged in Food Corporation of India godowns during the last one decade.

The damages were suffered despite the FCI spending Rs 242 crore (Rs 2.42 billion) while trying to prevent any loss of food grains during storage. Ironically another 2.59 crore was spent just to dispose off the rotten food grains.

These startling facts came in reply to a Right to Information application filed by a Delhi resident. FCI informed that 10 lakh tonnes of food grain was damaged in the godowns of government owned agency which is responsible for procurement and distribution of food grains across the country.

It comes at a time when a United Nations report has claimed that 63 per cent children in India go to bed without any food.

The FCI informed that 183,000 tonnes of wheat, 395,000 tonnes of rice, 22 thousand tonnes of paddy and 110 tonnes of maize were damaged between 1997 and 2007.

The FCI said in the northern region -- UP, Uttarakhand, Haryana, Jammu and Kashmir, Punjab, Rajasthan, Himachal Pradesh and Delhi -- the damage incurred was 700,000 tonnes and the PSU spent Rs 87.15 crore (Rs 871 million) to prevent the loss besides spending over Rs 60 lakh (Rs 6 million) to dispose off the damaged food grain.

"Keeping in view the amount of money spent by the FCI for preservation of food grains in its go-down, the quantum of damage is huge. Is it not a national shame?" the RTI applicant Dev Ashish Bhattacharya said.

Similarly in eastern India -- Assam, Nagaland, Manipur, Orissa, Bihar, Jharkhand and West Bengal � the damage incurred was 1.5 tonnes of food grains while the FCI spent Rs 122 crore (Rs 1.22 billion) to prevent it from rotting. But the damaged lot was disposed off after spending another Rs 1.65 crore (Rs 16 million).

In the southern region -- Andhra Pradesh, Tamil Nadu, Karnataka and Kerala-- the damage incurred was 43,069.023 tonnes despite spending Rs 25 crore (Rs 250 million). This damaged food grain was disposed off after spending another Rs 34,867.

While damage in Maharashtra and Gujarat mounted to 73,814 tonnes, the FCI spent Rs 2.78 crore (Rs 27 million) to prevent the loss. However, this lot was also disposed off later at a cost of Rs 24 lakh (Rs 2.4 million).

In Madhya Pradesh and Chhattisgarh, the damage incurred was 23,323.57 tonnes of food grains and the amount spent to stop the damage was Rs 5.5 crore (Rs 55 million).

The story was no different from other go-downs as the FCI spent Rs 10.64 lakh (Rs 1.1 million) for disposing damaged food grains.

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http://www.rediff.com/money/2008/jul/02food.htm


July 02, 2008 11:01 IST

Over 10 lakh (1 million) tonnes of food grains worth several hundred crores of rupees, which could have fed over one crore hungry people for a year, were damaged in Food Corporation of India godowns during the last one decade.

The damages were suffered despite the FCI spending Rs 242 crore (Rs 2.42 billion) while trying to prevent any loss of food grains during storage. Ironically another 2.59 crore was spent just to dispose off the rotten food grains.

These startling facts came in reply to a Right to Information application filed by a Delhi resident. FCI informed that 10 lakh tonnes of food grain was damaged in the godowns of government owned agency which is responsible for procurement and distribution of food grains across the country.

It comes at a time when a United Nations report has claimed that 63 per cent children in India go to bed without any food.

The FCI informed that 183,000 tonnes of wheat, 395,000 tonnes of rice, 22 thousand tonnes of paddy and 110 tonnes of maize were damaged between 1997 and 2007.

The FCI said in the northern region -- UP, Uttarakhand, Haryana, Jammu and Kashmir, Punjab, Rajasthan, Himachal Pradesh and Delhi -- the damage incurred was 700,000 tonnes and the PSU spent Rs 87.15 crore (Rs 871 million) to prevent the loss besides spending over Rs 60 lakh (Rs 6 million) to dispose off the damaged food grain.

"Keeping in view the amount of money spent by the FCI for preservation of food grains in its go-down, the quantum of damage is huge. Is it not a national shame?" the RTI applicant Dev Ashish Bhattacharya said.

Similarly in eastern India -- Assam, Nagaland, Manipur, Orissa, Bihar, Jharkhand and West Bengal � the damage incurred was 1.5 tonnes of food grains while the FCI spent Rs 122 crore (Rs 1.22 billion) to prevent it from rotting. But the damaged lot was disposed off after spending another Rs 1.65 crore (Rs 16 million).

In the southern region -- Andhra Pradesh, Tamil Nadu, Karnataka and Kerala-- the damage incurred was 43,069.023 tonnes despite spending Rs 25 crore (Rs 250 million). This damaged food grain was disposed off after spending another Rs 34,867.

While damage in Maharashtra and Gujarat mounted to 73,814 tonnes, the FCI spent Rs 2.78 crore (Rs 27 million) to prevent the loss. However, this lot was also disposed off later at a cost of Rs 24 lakh (Rs 2.4 million).

In Madhya Pradesh and Chhattisgarh, the damage incurred was 23,323.57 tonnes of food grains and the amount spent to stop the damage was Rs 5.5 crore (Rs 55 million).

The story was no different from other go-downs as the FCI spent Rs 10.64 lakh (Rs 1.1 million) for disposing damaged food grains.

This is really shocking. For a country that is still in development stage, it is a total failure of the relevant authorities. How come one can go without realising such a big wastage when there are millions of people starving?. Doesn't make sense at all. Inspite of having most of the natural resources, our country is ruined by the egocentric politicians who can't see beyond their near & dear ones'.

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A few years back there was an India Today (or some other reputed mag) article with pictures of rats etc rampaging the FCI godowns and also about the pathetic storing conditions resulting in losses of huge amounts of food grains. It was shocking and it appears the situation has not been corrected at all even now.

Probably such articles / studies help govt. allot "additional funds to improve storage to salvage food items". And any such fund allocation will take the usual route of going into "many pockets" with nothing useful getting done.

Once again emphasizes the need for good leadership.

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http://www.wfp.org/english/?ModuleID=137&Key=2899

While there are some efforts like this to provide urgent aids, there are disturbing reports of hunger around the world:-(

I read in an article that people have nothing else but 'mud cakes' (yes made of kaLi maN + salt + some vegetable extract) and these are being eaten in Haiti by many:-(
http://www.dinamalar.com/piraidhalgal/ananthavikadan/piraithal_ananthavikadan6.asp
(pasikkudhA, indhA maN)

'thani oruvanukkuNavillai enil jagaththinai azhiththiduvOm' - Bharathiyar.

[pavalamani pragasam]

Sad reminder of Sivaji's old vasanam:'kallaiththaan maNNaithaan thinnaththaan solliththaan...' KaNNan maN thinRaal annai YasOthai thittinaaL, inRu annaiyE maNNai thinna solkiRaaL. :cry:

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it is quite painful to read that.

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http://www.hindu.com/thehindu/holnus/015200808131401.htm

Plant mutation an answer to global food crisis: UN expert

New York (PTI): Plant mutation, a scientific technique that considerably improves crop productivity, could provide an answer to the current global food and energy crisis, a UN expert said.

"At a time when the world is facing a food and energy crisis of unprecedented proportions, plant mutation breeding can be a catalyst in developing improved, higher-yield, saline-resistant, sturdier crop varieties," Werner Burkart, Deputy Director General of the International Atomic Energy Agency (IAEA), told a four-day conference beginning August 12.

The International Symposium on Induced Mutations in Plants, hosted by IAEA, brings together over 600 scientists, researchers and plant breeders from around the world to discuss the latest innovations and how they can improve crop varieties in the future.

Plant mutation, an 80 year-old method, with mutagens such as X-rays, gamma radiation and chemicals is used to produce plant varieties that are disease-resistant or best suited to conditions such as high altitude or saline soil.

One success story is mutant barley varieties that thrive at altitudes of up to 5,000 meters in the highlands of Peru and which led to a 52 per cent increase in yields between 1978 and 2002.

Burkart, who is Head of the Agencys Department of Nuclear Sciences and Applications, said 2008 will be remembered as the year in which the world understood the realities of climate change and the food and energy crisis.

"These big issues are intimately interlinked, and translate in the agronomy field into a competition between food, feed and fuel for soil, water, human and financial resources," he noted.

again suggestions galore

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http://dailythanthi.com/article.asp?NewsID=495652&disdate=6/22/2009

This news report talks about hungry ones exceeding 1 bn worldwide :-(

Most of us tend to dismiss that this is probably due "poor countries in Africa". However, those from Africa alone won't make up this terrible number. A huge percentage is also from India, a country supposedly self-sufficient in food supplies :-(

Whenever I see people wasting food, these billion people come to mind and I get angry / frustrated.

At the minimum, we should pledge not to waste any food / food material.

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An important thing to learn from the "affluent" Americans is "not-wasting-the-leftovers".

Well, I never had the habit of "over-ordering" in restaurants, as right from childhood, my parents trained us to place only necessary amount on plate and the plate has to be clean before we get up.

Still, while in India, when we go to restaurant with family / relatives, often there'll be excess ordering and so much food will be wasted and thrown away. That of packing some leftover-food-for-home was a rarity / exception.

Here, even small amounts of leftovers are meticulously packed and taken home (whatever be the occasion, get-togethers or dining out), despite the plentiful supply of food in this country.

(Ofcourse, US people are huge-huge consumers of anything and according to one report, we need 5 earths if everyone in the globe consumes resources like the people in US. Still there are some things like this).

One of the good things to learn from them!

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http://news.bbc.co.uk/2/hi/europe/8109698.stm

This report says more than 60% of those affected by hunger live in Asia-Pacific :-( Obviously, the வல்லரசு இந்தியா hosts a big share of them, while wasting tons of money on the protection of 1000's of useless politicians with machine-gun bearing guards etc.

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http://www.dinamalar.com/fpnnews.asp?News_id=4730

Milk to cost 17.75 per litre in TN.

Recently, I've been seeing Detroit area prices for a number of items either same as or less than their prices in India (i.e. even after converting $ into Rs).

e.g.
This month the ALDI stores here sell a gallon milk (3.8 litres) for $1 (stores like Kroger sell for $1.5 on and off and the regular price in most stores is $2). (Interestingly, during summer of 2008, when gas prices rose to $4, a gallon, milk was $3.29 and $2.5 was considered "sale" and this year milk price is almost half of that.)

If one visits vegetable and fruit stores in the metro area (Joe Randazzo's run by Mexicans and certain others run by mid-east people like Greenland / Eastborn etc), they are priced so low as well. Simple example is cilantro (koththumalli ilai, not necessarily a local produce), you could get 3 big bunches for a $ on certain days.

Agreed U.S. has recession and India always has inflation, but have anyone ever seen milk price coming down in India, despite the country reaching the #1 producer in the world status, overtaking AU?

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http://dailythanthi.com/article.asp?NewsID=514889&disdate=9/18/2009

India gets 25th spot (Pak 11th) in vaRumai / pattini :-(

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http://www.dailythanthi.com/article.asp?NewsID=524483&disdate=11/3/2009

TN raises ration price of toor dAL (thuvaram paruppu) to 40 / kg (it seems their purchase price has gone up to 80 and hence the revision).

Does it mean the open market price of this is > 80? That's quite shocking, considering the fact that stores sell in a place like Michigan (where it's not a local crop and hence imported, with associated freight / duty ; also low volume consumption - I've not seen non-Indians using this lentil at all, middle easterns use a lot of other lentils - and no subsidy etc) 4 pounds (i.e. 1.808 kg) for $2.99.

Something is wrong somewhere :?

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அருமையான ப்ளாக் போஸ்ட் (http://navinavirutcham.blogspot.com/2010/06/60.html)

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Indian parliament and food prices :
http://news.in.msn.com/national/article.aspx?cp-documentid=4208149



As on January 1 this year, 10,688 lakh tonnes of food grains were found damaged in FCI depots. This would have been enough to feed over six lakh people for over 10 years.
Between 1997 and 2007, 1.83 lakh tonnes of wheat, 6.33 lakh tonnes of rice, 2.20 lakh tonnes of paddy and 111 lakh tonnes of maize were damaged in different FCI godowns.
"The FCI godowns have enough space to store food grains properly. Yet the grains are rotting in open spaces on their premises while millions are starving. It's a national shame," said Dev Ashish Bhattacharya, who filed the RTI application on this issue January 6, 2010.