The Crop Planning Sub-Committee of British India Government in 1934 ordered
for a halt to any further expansion of rice cultivation and protective measures had
to be adopted to check imports of wheat and rice during the period of depression. But the situation had changed altogether since 1937 when Burma was separated
from India, an action that had placed Mainland’s (India) food position in serious
jeopardy. Whether the Crop Planning Sub-Committee was politically disconnected
about Burma separation or keen to create artificial demand for rice, it is still a
mystery! Is the Rice Commissioner by British India appointed to create Demand -
Supply gap for profiteering?
The export of rice from India dropped to nil during separation of Burma from British India in the year 1937, which led India to become a net importer of this product to tune of 1.8 Million Ton. With effective from September 1943, all imports as well as exports of cereals including rice were to be on government account. Imports as well as exports of rice on private account were banned in 1943. The Food-Grains Policy Committee of British India Government estimated that the country required for current consumption an annual import of 1 Million Ton of food-grains in the year 1943. This was too lower estimate since normally 2 Million Ton of rice was imported during Pre-World War II years by India and the demand had been ever growing. The Second World War played critical role in diversion of food and shipping routes, even during Indian famine. Japanese invasion (including entry of Indian National Army) in Burma forced British India government to look for alternative source of rice.
Now India needs to feed 18% of global population of its available 11% arable land within its boundary where 14 crore population added after non- Basmati rice export ban of April 2008. The food security is to be examined in the context of new history - Covid19.
The export of rice from India dropped to nil during separation of Burma from British India in the year 1937, which led India to become a net importer of this product to tune of 1.8 Million Ton. With effective from September 1943, all imports as well as exports of cereals including rice were to be on government account. Imports as well as exports of rice on private account were banned in 1943. The Food-Grains Policy Committee of British India Government estimated that the country required for current consumption an annual import of 1 Million Ton of food-grains in the year 1943. This was too lower estimate since normally 2 Million Ton of rice was imported during Pre-World War II years by India and the demand had been ever growing. The Second World War played critical role in diversion of food and shipping routes, even during Indian famine. Japanese invasion (including entry of Indian National Army) in Burma forced British India government to look for alternative source of rice.
Now India needs to feed 18% of global population of its available 11% arable land within its boundary where 14 crore population added after non- Basmati rice export ban of April 2008. The food security is to be examined in the context of new history - Covid19.
In 2014-15, India had exported 3.75 Million Ton of Basmati rice for which 10
Trillion Litres of Water used. Another logic could be that India virtually exported 10
Trillion Litres of water (larger volume than Cauvery water dispute) in which one
fifth would have been from ground water. According to a forecast by Asian
Development Bank, India will have a water deficit of 50% by 2030. Further, Central
Ground Water Board (CGWB), India had already asked Punjab Government to
bring down the paddy area to 1.6-1.7 Million Hectares against the current 2.9-3.0
Million Hectares to save Punjab from dessert like conditions in coming few decades.
The World Resources Institute predict that global demand for water is projected to
rise 50% by 2050 as the world population climbs to 9 billion. In the era of climate
change, India should not just look into trade surplus in foreign exchange but also in terms of water consumption. History reminds us, during independence, the Princely State of Ganganagar, Rajasthan, India
joined Union of India with pre-condition of providing water through canal. Water
was a sensitive subject during those days.
Recently, the Niti Aayog (Policy Planning and Advising Institution of India)
released a detailed report on water scarcity. The continuous electricity subsidy and
depleting ground water is to be constructed in the value chain in order to achieve
sustainable options and support exchequer. The exports of Basmati rice and other
food products deserve to earn Desert Or Water Premium (Even Health Premium,
where farmers suffer due to pesticide application). The electricity subsidy provided
to agriculture of Punjab, Haryana and Uttar Pradesh is an important subject to
study in view of virtual water trade and exports, competitiveness and compliances. A serious research on Supply Chain and Network of Domestic Virtual Water Trade could enhance efficient usage of water prior to Linking Rivers. An environment friendly Foreign Trade Policy for India is a need of the hour.
A research report states that West Bengal can produce
almost 42 Kg of rice from 100,000 Litre of irrigated water while Indian Punjab can
produce only 19 Kg of rice from the same quantity of water. The electricity subsidy
per hectare in Punjab is Rs. 8,863, which translates to USD 26.45 Per Ton and
USD 58.79 Per Ton for evolved Basmati rice and traditional Basmati rice,
respectively. Considering the fact that water is a scarce commodity and Basmati rice is a
special product, the industry should move towards creating an environment driven
pricing formula. The Basmati rice is predominantly consumed in West Asia, where
there is no water to cultivate food. When West Asian countries are willing to pay and purchase
mineral or potable water, Basmati rice pricing may inherently be constructed with
water rate, similar to Asian Premium of Oil and Gas trade.
Food Security planning of India is now required in this Covid 19 War Period Scenario - an eye on virtual water trade policy and virtual water trade agreement in order to protect domestic requirements and creating real and authentic pricing.
Food Security planning of India is now required in this Covid 19 War Period Scenario - an eye on virtual water trade policy and virtual water trade agreement in order to protect domestic requirements and creating real and authentic pricing.
Well written article highlighting the need for a sustainable and real pricing of Basmati and other premium commodities. I think it is right time that the Government look into direct and indirect subsidies that are provided to and goes into in growing these commodities. what is the point of Indian government subsidising the cost of goods enjoyed by rich nations which can, otherwise, afford and willing to pay more for these commodities. The environmental cost should also be loaded into the pricing of the export of these commodities by levying export duties or some sort of green levies.
ReplyDeleteThe demand-supply curve of these commodities in international market should be ascertained and right pricing should be determined.