Food and Nutrition Security Status in India

Opportunities for Investment Partnerships

Food for All

Investment forum for Food Security in Asia & Pacific
ADB-FAO-IFAD

Manila, Philippines
7th-9th July, 2010
 Outline
` Dimension of Food & Nutrition Security in India
` A conceptual framework
` Issues related to 3 pillars of food & nutrition security
` Availability----Accessibility---Absorption

` Major Challenges & Opportunities

` Role of the public sector

` Opportunities for Investment Partnership

` Linkages and synergies
A Conceptual Framework
 

Availability Accessibility  Absorption

 
(physical access)  (economic access)  Diet + health & sanitation + 
   

Production + IM‐EX+ (‐) stocks  Income levels + purchasing  power  education outcomes 

+ social safety nets 

• Incentives   • Employment  opportunities  • Nutritional Intake  

(input & output pricing,   (Rural nonfarm activities,      (calorie, proteins, micro 
trade policies)  urban oriented (semi‐ nutrients) 
Enabling factors 

 
skilled/ unskilled))   
•  Institutions    • Health and sanitation 
(land, labor, credit, food  • Social Safety Nets (SSN)  conditions 
grain management  (Income, price support   
agricultural marketing)  Direct food transfers)  • Education level 
 
 
•   Investments  • Role of gender in the 
(Irrigation, roads, power, 
household  
supply chains) 

• Public sector  • Public sector  • Public sector 

Program support  Rural employment: NREGA   (ICDS, Mid‐day meal 
(NADP, NFSM, NHM);  PDS, other food based SSN  scheme, etc.) 
Stakeholders (opportunities of 

Foodgrain management     
• Private sector  • Private sector  
 

• Private sector 
Seed sector; Modern value  Modern retailing &         (Fortified food for the poor)  
processing    
partnership 

chains; Backend operations 
(like HKB, ITC choupal sagars,    •  CSO  
etc.)  •   CSO            (Akshya Patra, Micronutrient 
 
• Multilateral/Bilateral  Initiative etc.) 
•  CSO   agencies/Philanthropic   
Extension services; clustering 
farmers in groups (BAIF, 
Foundations  • Multilateral/Bilateral 
(ICDS: World Bank, Care,  agencies/Philanthropic 
Pradan) 
  WFP)  Foundations 
• Multilateral/Bilateral    (World Bank in RCH, 
agencies/Philanthropic  education) 
Foundations   
 
Food & Nutrition Security: Where lies the
concern?
` Accounting for 17% of global population, likely to be most
populous by 2030

` Nearly 41.6% of population living on less than $1.25 a day

` History of droughts, famines, heavy dependence on food

imports

` Now, increased volatility in production systems, global

economic scenario

` Jeopardizes nutritional security of vulnerable groups;

especially women & children
Agricultural Growth & Nutrition
Value of agri-output per hectare and malnutrition status across
Indian states: TE 2005/06
Food Availability: Key Features
` Driven by GR, production of food grains increased
` 51 mn tons (1950/51)---108.4 mn tons (1970/71)----233.9 mn tons
(2008/09)
` Fluctuations in production, stagnating yields are a concern
` About 60 mn tons of rice & wheat in Govt.stocks as on May 2010

` Net agricultural exports increased from $2.7 bn (1990/91)

to $10.7 bn (2008/09)

` B/w 2001/02 & 2008/09, India exported a cumulative total

of 33.2 million tons of rice
Agri production is diversifying toward HVCs
` Share in GVO: 37.1% (TE1982/83) to 47.2% (TE2007/08)
` Production of F&V, milk, eggs, poultry rising
 Recent Challenges & Opportunities
` Impact of climate change on production systems
` 2 to 4 degrees rise in mean temperatures likely to have
adverse impact on production patterns

` Production losses in wheat likely to be around 6 mn tons for

one degree rise in temperature (FAO-GoI Mission)

` Small farmers in rainfed regions likely to be worst affected

` South Asia likely to be the worst hit region, taking a toll on

irrigated crops
Recent Challenges & Opportunities
` Increasing stress on water resources & soil health
` North-western India’s aquifers fallen by a foot a year
b/w 2002 & 2008 (NASA)

` Unsustainable state of groundwater withdrawal in North

West India
` Increasing climate variability

` Shift the bread basket to eastern India

` Water abundant, low fertilizer use, low yield levels….

` But will require large investments in irrigation,

infrastructure, marketing networks, etc
Accessibility of Food
` Changing consumption patterns
` From cereals to HVC
` High economic growth, rising income levels are the key drivers
` High absolute level of poverty remain a challenge

` Accessibility of food by the poor is a concern

` Operational difficulties in PDS
` Issues related to choice preference
` Targeting & outreach remain a problem

` Rural employment programs, social safety nets play

an important role
Absorption: Nutritional Security
Prevalence of
underweight
Proportion of in children
undernourished in under 5 years Under-5 mortality
Country the population (%) (%) rate (%)
1990-92 2002-04 2000-06 1990 2006

Bangladesh 35.0 30.0 39.2 14.9 6.9

India 25.0 20.0 43.5 11.5 7.6
Nepal 20.0 17.0 38.8 14.2 5.9
Pakistan 24.0 24.0 31.3 13 9.7
Sri Lanka 28.0 22.0 22.8 3.2 1.3
South Asia 26.0 21.0 41.0 12.3 8.3
 Overview of Key Public Sector Programs
` Related to Availability
` National Agriculture Development Program (RKVY)
` National Food Security Mission (NFSM)
` National Horticulture Mission (NHM)
` Micro Irrigation
` Accelerated Irrigation Benefit Program (AIBP)
` Related to Accessibility
` Public Distribution System
` Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS)
` National Food Security Bill
` Related to Absorption
` Food based SSN: ICDS, MDMS,
` Education & health: SSA, NRHM, etc
` Rural Development: Rural roads, housing & sanitation
Central Plan & Non-Plan Outlays for 2010/11
in Rs  in USD bn 
billion  @47.94
Agriculture 118.80 2.50
Department of Agri & Coop (NFSM, NHM, MI, MMA, etc) 82.80 1.70
RKVY (National Agricultural Development Program) 67.22 1.4
Department of Agri Research & Education (NAIP) 23.00 0.50
Animal Husbandry, Dairying & Fisheries 13.00 0.30
Rural Development (NREGS, etc) 893.40 18.64
Human Resource Development (SSA, MDMS, etc) 420.4 8.8
Women & Child Development (ICDS, etc) 110.0 2.3
Ministry of Health & Family Welfare 223.0 4.7
Major Subsidies 1086.7 22.7
Food Subsidies 555.8 11.6
Total Fertilizer subsidy 499.8 10.4
Opportunities for Linkages & Synergies
` Availability
` Food grain sector
` Production, procurement, storage, & distribution of food grains
largely managed by the public sector
` Private sector participation
… in storage, logistics, marketing very limited
… Larger role in seed, chemical inputs, extension services

` High Value Commodities sector

` Private sector participation through contract farming,
processing, retailing and exports
` Farmers’ organization, cooperatives
` Role of multilateral agencies: World Bank, IFAD (NAIP)
… new technology, new processes , state specific interventions
Opportunities for Linkages & Synergies
` Accessibility
` Programs are largely managed by the public sector
` CSOs play an important role in program outreach
` Role of multilateral agencies???

` Absorption: Nutritional Security

` Flagship programs such as ICDS, MDMS, SSA managed by the
public sector
` CSOs participate in extension and outreach activities
` Multilateral agencies are involved in different capacities
Further Scope for Investment Partnerships
` Business-as-usual scenario will take at least 25-30
years, if
` growth has to translate into food and nutritional security
` poverty to be brought down from 55% (1973/74) to 27.5% (2004/05), to
5% over the next 10 years

` To achieve the same in a decade,

` investments have to increase dramatically, by how much?
… 25% to ensure 4% agri growth or 100% for (6-7)% growth

` potential sources of investments: additional Govt. resources by

rationalizing subsidies, incentivizing private investments through
policy, institutional reforms

` nature of partnerships: public, private, multilateral, philanthropic

foundations or even country partnerships