Stability in markets will be determined by size of next year's crop The Food and Agriculture Organisation (FAO) has warned about a further increase in global food prices in 2011 if there is no significant increase in production of major food crops. In the latest edition of its “Food Outlook” report, the agency observed that the rise in global prices, all of which was accruing in the second half of 2010, owing...

The green revolution has largely mitigated food security concerns even though flawed distribution and food inflation keep a section of the population underfed. However, nutritional security still eludes most people, including many of those who eat enough cereal. Much of this nutritional deficiency is the result of an insufficient intake or the consumption of poor-quality protein. Food scientists believe that promoting fish consumption can play a key role in alleviating protein...

A high-level working group of the Government of India has approved the idea of outbound foreign direct investment by Indians in the production of pulses and oilseeds aimed at meeting domestic demand. This is not a new idea. Since arable land in India is fast shrinking and efforts to lift the output of pulses and oilseeds, besides some other essential commodities, are not bearing fruit, investing in land elsewhere for...

The new rabi grain pricing policy seems to have been influenced more by macro-concerns about food inflation management rather than any considerations relating to food production planning. The marginal increase in minimum support prices (MSPs) of most rabi crops, barring pulses, is understandable given the government’s focus on inflation reduction and the fact that this marginal increase comes on top of earlier hikes of a decent magnitude. Moreover, there are...

Never mind wishful thinking by the government and RBI. Food will never be cheaper than what it is today. Not this year. Or in future. The reason is simple. Growing food in India has become extremely expensive. Crops are pricier even before they reach the market and face the pulls and tugs of rising local demand and exports. The farmer’s single biggest cost now is labour. Farm labour wages have doubled...