Showing posts with label imports. Show all posts
Showing posts with label imports. Show all posts

Saturday, November 29, 2014

Pulses production in India-Will it ever meet the domestic demand?

Pulses or legumes constitute a major component in the diet of Indian population which is predominantly vegetarian in their eating habits both by tradition as well as due to economic compulsions. Though most can eat animal based foods like meat, fish and egg, due to limited income per family they cannot buy these expensive food items at the prevailing market prices. Milk is another protein source which is produced in India adequately but here also the average price of Rs 30 per liter makes its proteins much more costlier than that in pulses. Most pulses have protein contents of 23-25% on dry weight basis while in fluid milk it is only about 5% on fresh weight basis. In the case of meat it works out to a protein content of about 21-25%. Cost wise the costs per kg of protein from these three sources are Rs 300 from pulses, Rs 600 from milk and Rs 1000 from meat. No wonder people will less per capita income are compelled to to opt for plant proteins to meet their health need of 50 gm of proteins per person every day. 

Some pundits feel that plant proteins are not of high quality when measured on scales of Protein Efficiency Ratio (PER) or Biological Value (BV), they being deficient in one or more of essential amino acids that human body cannot make in vivo. Probably this may be true but what one can do if he cannot afford high quality protein containing foods like meat? This is where food and nutrition science come to their help. Nature has a diversified source of plants containing proteins of different amino acid profile and therefore by judicial blending of different pulses and cereals one can get all the needed amino acids readily from such mixed diets. If Net Protein Utilization (NPU) another yardstick to measure protein quality is taken into consideration, egg ranks high with 90% plus mark followed by milk (80% plus), meat (65% plus), legumes (50-60%) and whole grains (50-60%). Two of the three limiting amino acids that humans cannot make in vivo viz Methionine is low in pulses and Lysine is low in grains. Considering that in a composite diet consumed by a vegetarian both legumes and grains are present and therefore the over all protein quality does not suffer from a nutritional perspective.

India being the largest producer and consumer of pulses has always been short of this vital commodity, forcing it to resort to large scale imports, some times almost 25% of its need being met by imports from countries like Canada, Myanmar, Australia, Russia and USA. According to government sources the country was supposed to have produced during 2013-2014 about 19 million tons (mt) with import of about 1.4 mt supplementing the availability to meet the demand of 21 mt within the country. What is disappointing is that the production of pulses has been stagnating during the last 5 years hovering between 18 and 19 mt annually. Why the country has not been able to raise production is a complex question and the international prices of these pulses fluctuate widely depending on Indian imports. In 2009-10 and 2012-13 the average imports were around 3.5 mt per year. Only in 2013-14 the imports saw a dramatic dip with only 1.4 mt being sourced from outside. Interestingly government offers decent minimum support prices (MSP)  to pulses ranging from Rs 2950 to Rs 4500 per quintal depending on which pulse one is talking about.

In the domestic demand situation Bengal gram or Chick Pea is at the top consumption being 9.7 mt followed by Tur at 3.3 mt, Moong and Urad at 3 mt each. Others account for another 3 mt. Interestingly Dry Peas account for the highest import being about 1.33 mt followed by Masur at 0.71 mt, Pigeon Pea at 0.47 mt and Chick Pea at 0.28 mt. Though in the strict sense Dry Pea is not a legume as is being understood by many, it is used in fresh or frozen form as a vegetable; nonetheless it does belong to leguminous family. Considering that India is the largest importer of edible oils, almost 3 times the quantity of legumes imported, government is justified in persisting with out sourcing pulses because of the health implications of pulses in Indian diet. However not taking enough efforts in achieving self sufficiency in pulses production cannot be condoned. Besides, neglecting the role of pulses in the food security scheme of the country can be disastrous in the long run for the health of Indian population, especially that segment having low per capita income.  

Talking about prices of various pulses within the country there does not appear to be any valid basis for some of the popular pulses being priced exorbitantly high making it beyond the reach of common man who either has to reduce pulse consumption suiting his purse or avoid buying them altogether. Same goes for edible oils also which are very highly priced, some of them costing as high as Rs 200 per liter to the consumer at the retail level. One of the demands made by pulse growers' community is that pulses like Tur and Chick pea must be included in the PDS food basket, priced reasonably, for the low income groups to get access to them. Manipulation of prices of edible oils and pulses is rampant with hording becoming a standard practice in the face of a soft governance system in the country. Will the government at least wake up now and "catch the bull by its horn" to give succor and relief to the much harried citizen?

The overwhelming obsession with cereals and sugarcane by the government is not understandable considering the astronomical import costs incurred while outsourcing pulses and edible oils draining billions of dollars of foreign exchange year after year causing hemorrhage to the public exchequer. As a part of National Food and Agricultural Policy of the country, oil seeds and pulses deserve priority considerations and all other crops, except cereals must play a sub-ordinate role. What ever be the cost there is an urgent need to prioritize allocation of resources from the government to raise all the food needs of the population qualitatively and quantitatively in the coming years. Government must be ruthless in restricting cultivation of non-essential crops so that adequate fertile land and inputs are diverted to the three crops viz, cereals, pulses and oil seeds. 

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com 

Tuesday, October 14, 2014

SELF RELIANCE IN EDIBLE OIL AND PULSES-INDIA'S WOES!

Edible oils and pulses play a significant role in the diets in India where the population by nature or due economic compulsions are predominantly herbivores. Especially critical is the place of pulses in the diet as they provide a major part of the proteins needed for balanced nutrition. In contrast oils constitute the energy source, supposed to contribute about 30% of biological energy in the diet. On an average humans need about 50-60 gm each of oils and pulses to meet the body needs and this requirement can be met from a variety of sources including pulses, oil seeds and extracted oils from seeds like groundnut, oil palm, soybean, cotton seed, mustard, sesame and others like maize germ, rice bran etc. While India produces about 20 million tons(mt) of pulses annually, its edible oil production is stagnating at around 8 mt since 2003-2004.

In spite of the critical shortage of the above two food crops ever since independence, not much could be done in raising their production due to many reasons. Historically India always placed higher priority to production of cereals like rice and wheat through attractive minimum support price policies till the year 2000 and farmers were always attracted by such incentives to cultivate more cereals than pulses and oil seeds. Though the MSP levels were raised 92% in the case of mustard to 212% for sunflower between 2001 to 2013, the production of these two crops still languished and the country is at a loss as to what has to be done to raise their production. The history of repeated imports of edible oils and pulses continue causing a hemorrhagic out flow of foreign exchange year after year to prevent price escalation in the domestic market.

While in 200-2001, the proportion of imports of oils was less than 50% ( 5 mt out of 11 mt) of the country's need, to day the corresponding figure stands at a whopping 60%( 10.5 mt out of 18 mt)! Domestic production increased by just 40% during these 13 years while imports more than doubled. . While annual per capita use of oil is about 92 kg in Argentina, 60 kg in the EU countries, 55 kg in America, in India it is a paltry 15 kg. The world average is more than 25 kg, almost double that in India. Of course nutritionists may argue that low consumption of fat is a win-win situation as high fat consumption is implicated in many disease like CVD, Hypertension, Diabetes and Obesity!  Probably if the present spurt in oil prices with most oils being priced between Rs 100-200 per liter, how far demand for this culinary ingredient will be sustained is a million dollar question. However market optimists expect that by 2020 the demand may reach about 23 mt from the current availability of 18 mt. How the government is going to react to this situation remains to be seen.

Current pulse production of 20 mt is supplemented by import of about 4 mt and the daily per capita availability works out to about 70 gm though the National Sample Survey says that the consumption is only about less than 30 gm a day. Why this discrepancy is not clear but there is a trend which clearly shows that consumption of pulses is coming down significantly over the years and an Indian citizen was much better off in the first decade after independence compared to present day India as far as pulse consumption is concerned. In contrast per capita availability cereals is almost same to day compared to 60 years ago hovering around 450 gm a day. Whether this justifies successive government efforts in boosting cereal production at any cost is matter of debate. Interestingly in spite of imports of about 4 mt of pulses into India the market prices of pulses still rule very high, unaffordable to many low income citizens to buy the minimum need as per the nutritional guide.

The above convoluted picture raises another important question regarding the priority accorded to sugarcane in this country which is heavily steeped in politics, most powerful politicians being products of the sugar lobby which have tremendous influence on the thinking and working of the governments at the Center as well as in some states. As a nation it is time that the role of sugarcane in the agricultural landscape of the country is revisited. 25 mt of sugar produced from sugarcane cultivated in 53 million hectares of country's precious land can be considered laudable from agricultural achievement view but how relevant is this to the food needs of the country? Sugar is considered a white poison in the lives of people though it adds considerable pleasure to the human palate and its by product Alcohol inebriates the consumer! From nutrition angle sugar does not serve any purpose in the diet and its calories are no more superior to that contributed by starch contained in all cereals, pulses, root crops, fruits and many vegetables. Why not restrict the sugarcane cultivation through disincentives and punitive measures and divert the land for raising pulses and oil seeds in the national interest? If the sugarcane cultivation is reduced by 50% the resulting spared land can increase the present production of oil seeds and pulses very significantly.

To day the area under cultivation for oil seeds and pulses is 30 million hectares (mha) and 25 mha respectively. Imagine the impact of diverting 50% of the land currently under sugarcane (about 27 mha) to production of these vital crops on the economic health as well the human health of the population in the country. All it needs is to protect the income of farmers who are cultivating sugarcane at present which will be persuasive enough for them to switch over.to oil seeds and pulses.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Sunday, September 23, 2012

THE JUTE BAG POLICY-IS IT RIGHT?

Jute cultivation and production are more or less concentrated in the Indian subcontinent and being the second most important natural fiber after cotton, it has garnered for itself a distinct market during the last 300 years. Britishers, the colonial overlords in this region till the first half of last century were literally looting countries like India by taking the harvest to the UK to process into value added product for local use. Though the jute fiber extraction and processing were predominantly manual, Britishers still found it a good source of high quality fiber with many potential industrial uses. It is a fact of history that Britishers discovered a special way to make jute fiber amenable to machine processing involving treatment with Whale oil. It is another matter that many innovative products have been developed using jute as a base and jute is meeting the new aspirations of the modern world to move away from synthetic fossil fuel based fibers by providing an excellent natural alternative.

The jute plant belonging to the genus Corcherous yields long, soft, shiny vegetable fibers, found very strong with many desirable physical properties. It is a ligno-cellulosic substance containing both cellulose (plant fiber) and Lignin (wood ) and hence provides the softness of celluloe as well as the strength of wood. There are similar fiber sources growing wild like Kenaf, industrial hemp, Flax, Ramie etc which are available only in limited quantities in some parts of the world. Organized cultivation of jute is confined to India, Bangladesh, Myanmar and to a smaller extent in some other countries and the most prolific producers are India and Bangladesh, accounting for more than 95% of world production to day. While Bangladesh exports a substantial portion of its jute production, in India there is enough domestic demand to absorb the entire production leaving very little for export.

As many jute mills are reporting losses in their operations because of the advent of more economical and convenient plastics based bags, it had the effect of reducing demand for jute bags progressively. Government of India in its wisdom came to the rescue of jute mills, probably considering the adverse impact large scale closure of these mills might have on jute farmers and mill employees, promulgated coercive laws to force two commodities viz, food grains and sugar to be sold only in jute bags. It is true that jute is eminently suited for packing these materials but providing such a prop for a section of the industry raises some questions regarding its impropriety. How can the rich jute mill owners have any incentive to bring in innovation and improvisation for modernizing the production facilities and diversifying its use into other more profitable areas under such a protective regime? Is it not that the government is exposing its weakness by the blackmailing tactics of the jute mills by way of threatening their closure frequently?

Why should the jute industry be given such protection? Is the price of jute in India very high compared to prevailing prices in the neighboring countries? What prompted the government (GOI) in this country shoot down a proposal to import jute from Nepal and Bangladesh in the light of complaints by the users about shortage? The ruling price for jute in Bangladesh is about Rs 7000 for a bale of 180 kg while in India the corresponding price is Rs 3000 per 100 kg which is some what cheaper and therefore importing jute from that country is going to be costlier. Unless there is a significant quality superiority who is going to buy jute from Bangladesh?   


The Jute Packaging Materials Act (JPMA)-1987, a Central legislation, provides for 100 per cent mandatory reservation for jute bags for packaging of sugar and food grain. Since both sugar and foodgrains are under the reserved sector, the Union law ministry has expressed reservations over import of gunny bags from Nepal and Bangladesh under the garb of legal and technical difficulties. It should be recalled that the very GOI had allowed such imports earlier, probably for use by industries other than food grains and sugar packers. If the Jute Mills Association (IJMA) spokesman is to be believed only one million tonnes (mt) of jute sacks are needed to pack food grains and 0.2 mt for packing sugar. This can be met comfortably by the Indian jute industry which has the capacity to churn out 1.5 mt of sacks and sacking capacity is almost 0.55 mt higher than peak government demand. One wonders whether these calculations are really realistic considering the bumper production of food grains this year with the possibility of a substantial portion of the surplus production forced to be stored under the CAP mode using gunny sacks as primary packing material. 

Bangladesh, considered an "all weather" friendly neighbor to India, produces around 0.5 mt of gunny bags each year as against India's 1.1 mt. Bangladesh's raw jute production is around five million bales (1 bale is 180 kg) in comparison to India's 11 million bales. What is notable is that Bangladesh is a more prominent player than India when it comes to international trading in jute products. There is an allegation that this country mostly thrives on discounts that are covered up by huge government subsidy, enabling the jute industry there to export over 60 per cent of its products while Indian export is hardly 10-12 per cent. Interestingly the jute bag order exempts packing below 25 kg and above 100 kg from its purview! Major industrial sugar users like giant beverage manufacturers still refuse to use Indian gunny bags as they contend that sugar packed in these bags is unsuitable for their manufacturing process! 

It is time that the closed Indian mindset in controlling "every thing and every body" through the brutal power at the disposal of the government is changed in favor of a free regime as under the WTO regime and allow free trade for attaining its own equilibrium through market forces. If Bangladesh is using unfair means for dumping its jute bags in the Indian market there are always policy and legal options to check them. Jute is a precious natural resource which is likely to be pole-vaulted into prominence in the near future because of its multifaceted advantages. It is 100% biodegradable, cheapest fiber available, high tensile strength, low extensibility, better breathability, low thermal conductivity, good aquastic insulating property etc. Of course its poor drapability, poor crease resistance, britleness, fiber shredding tendency and gradual yellowing may make it unsuitable for some applications. Even if a fraction of the investment going on cotton fiber development in India, were to be made for improving jute fiber, the results would have been phenomenal by now! Scientific neglect of this sector has ensured that it remains an archival piece on the modern industrial landscape in the country. 

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
   

Monday, May 7, 2012

FOOD VS MINERALS-ARE THE NEW POLICIES SKEWED?

The present government is very keen to push through the so called food security bill under which food grains like wheat, rice and coarse grains are distributed practically free to three fourth of the population in the country under the skewed perception that people would be happy if they could access staple foods easily. What is forgotten in this populist program is about the logistics of production of required food to meet the new needs arising out of the commitment by the government. The long forgotten Green Revolution had run its course, ruining the fertility and health of the soil and it is unlikely that the same soil can achieve quantum jump in production unless reclaimed or rehabilitated. Such a program of rejuvenation is far from the minds of the policy makers as of now and probably this commitment will eventually lead to massive imports of food in future. Present happy situation with the grain stocks cannot continue for ever and if the rains fail the country a couple of times the present stock can "evaporate" in no time. Is any one at Delhi, including the "exalted" Planning Commission bothered about this precarious situation?

The new Land Policy now being orchestrated is intended to facilitate land acquisition for industry and real estate conglomerates, the only redeeming feature being increased compensation receivable by the land losers. But disappearance of agricultural land, especially smaller holdings owned by millions of farmers in the coming years will make a dent in food production and such a land policy will also contribute to increased food imports. There appears to be a perception in the government that self reliance is a "sin" when the country has subscribed to free trade policies under the WTO regime. Is food import a wise policy? Of course not because grain prices in the international markets are influenced by many factors and India has no influence on the same. Is the country prepared to pay any price to import food grains when food shortages become acute one day? Recent events have seen how a small drought in one exporting country can cause spiraling of grain prices in the global market and imagine the potential risk in the form of civil disturbances that can occur under scarcity conditions! 

As one of the discerning critics has pointed out recently the present government seems to be more pre-occupied about mineral exports under the perceived impression that they can bring lot of money and this is the logic behind the enactment of the new Mining Bill. Though land acquisition for mining is not a pre-requisite as such lands rich in minerals are leased out for long time, fact still remains that land is lost for cultivation if minerals are found under the land, affecting again food production. Country seems to be forgetting the recent mining scams in states like Karnataka, Madhya Pradesh, Goa and others which have rocked the nation and all these scams are politician-mining mafia driven causing huge losses to the exchequer. Look at places like Bellary where the environment is thick with red dust generated by inefficient and crude way of mining and mining barons are ruthless in destroying every thing coming in their way. Illegal mining and exporting appear to be taking place under the very nose of the government in spite of judicial intervention! A number of NGOs who espouse the cause of environment are doing a yeomen service to the nation by their relentless fight against over mining and unscientific practices of mining industry. 

The current year bumper harvest may embolden the government to push ahead with its illogical policies because with large stocks of food grains in the government storage depots, covered as well open, a false sense of food security is likely to prevail at least for another year. When one talks about mining and export of minerals from the country, it is forgotten that precious non-renewable resources are lost once for all irretrievably and will the present rulers be around to answer to the future generations about such a heinous deed? What prevents the government from linking mining leases with production outfits which can extract the valuable mineral contained and return the bulk of the wastes back to the place preventing unnecessary land destruction. Export of minerals containing 99% sand and traces of targeted mineral is nothing but a folly when country is talking about value addition, industrialization and employment generation. 

India will be remembered in history as a country going down under with wrong policies and priorities, if agriculture is not given the importance it deserves. Almost 70% of the population living in the rural backyard of this country should be applauded and encouraged for providing food to the 30% of those living in urban regions generating economic wealth through manufacturing and other industrial and commercial services. If rural India falters the country will falter and it is the duty of the government to provide rightful environment through economic and policy support with more commitment. Farmers in this country should not be allowed to wither away by a deluge of suicides taking place in different agricultural belts and if such wake up calls do not ring alarm bells in the appropriate quarters, nothing else will!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com