Top 5 Priority Actions for Sustainable Food Security of India

Top 5 Priority Actions for Sustainable Food Security of India

By:

Vijay Sardana

Bio-economy and Agribusiness Specialist

Addressing Food and nutrition security by minimizing food wastage and food production are important precondition to be addressed by the union budget to control food inflation, current account deficit and to promote rural economy. It is also true that agriculture subject; union government cannot do any major interventions except by giving some incentive to private sector including farmers.

In overall national interest, Union Government should address the following issues on PRIORITY: 

The important expectations from the Union budget are:

1.   Promote water and power saving Irrigation technologies: In order to make agriculture predictable and to ensure regular income for farmers and assured supplied for consumers, irrigation is vital. For next two years make all water conservation technologies like drip, sprinkler, shade nets, solar pumps, etc tax free so that more and more farmers can adopt these technologies. Large Farmers cooperatives with required management skills should be encouraged to set-up their own manufacturing facilities for these products. Let there by tough competition. No need to give subsidy because it is often misused but the policy should be to create e competition.

2. Invest in Warehousing: Post-harvest losses are a major concern and every year country suffers. We must invest in post-harvest management infrastructure in big way. It is one time investment but saving comes every year. For next 4 years government must have target to create WDRA approved warehousing facilities for 20 million tons every year. People may say we don't need these, just do it you wind there will be more space in cities because today many basements and rented properties are used as godowns in cities. This will create huge incentive for everyone to preserve food products. This will be best investment for controlling food inflation. If we can invest Rs. 50,000 Crores on stadiums in Delhi which are lying un-utilized, Now, with the same zeal and enthusiasm, we should also invest 50,000 on warehousing which will save food grains worth Rs. 80,000 Crores per year. Why there is delay in this?

3. Create parallel National Market for Agriculture Produce: If we cannot amend APMC at state level in time bound manner, Union government must propose an alternate national Market for Agriculture produce based on Internet platform in line with commodity markets. Those who are willing to trade on national market without going to mandies should have option to do so. Existing commodity exchanges also need close monitoring and must have mandatory delivery systems in case they want to be part of National Agriculture Market Initiative.

4. Remove tax and minimize transaction cost on basic commodities to check adulteration and manipulation: Multiple forms of taxes in food systems encourage traders to look for tax avoiding methods. This leads to manipulation and adulteration. The amount to mandi tax which states collect in comparison to what they claim as production is clear example that taxes are not paid. This crate unfair competition and discourages investment by ethical investors. The best way to create level playing field is eliminate all forms of taxes on basic raw material so that input cost becomes uniform between good and bad players. 

5. Custom duties must reflect Made in India intentions: Today commodities like edible oils are major suffer because of illogical duty structure in the name of controlling food inflation. Commodities like edible oil, pulses, fodder, needs serious look to control food inflation, current account deficit and to create rural employment.

Hope Union Budget will address supply side issues to address food inflation. These concessions in Union budget will give major flip to supply side and government will generate more revenue from demand side. So, these are revenue positive suggestions provided implemented logically.