As the newly-elected Congress government in Karnataka grapples with the challenge of securing rice supplies to fulfill its electoral pledge, farmer leaders and experts propose an alternative solution — that the State explore the possibility of procuring millets like ragi and jowar directly from local farmers at the minimum support price.

 

Such a move would help address the nutritional security besides encouraging farmers to grow more millets, they said.

 

After the Food Corporation of India (FCI) decided to halt the sale of rice and wheat through the Open Market Sale Scheme to States, Karnataka is now seeking rice supplies from Chhattisgarh, Telangana, and Punjab to fulfil its commitment of providing 10 kg rice to each member of households below the poverty line. The Union government discontinued the OMSS sales to States, with the exception of the North-East region, citing delayed monsoon and escalating cereal prices as the reasons behind this move.

 

'Instead of buying rice from other States to provide under public distribution system, the Government should procure ragi and jowar from local farmers and provide them to beneficiaries. Ragi is consumed in southern parts of the State, while jowar is consumed in the northern districts. This will also encourage farmers to grow more of these cereals and lead to employment opportunities in the state,' said Chamras Malipatil, President of Karnataka Rajya Raitha Sangha (KRRS). Also, the Government can look at providing sona masuri rice to the beneficiaries, he added.

 

Echoing similar views, farmer leader Kurubur Shantakumar, said by procuring ragi and jowar directly, the State should come to the rescue of farmers.

 

Prakash Kammaradi, agri-economist and former chairman of Karnataka Agriculture Prices Commission, said the State should look at providing 5 kg of jowar/ragi along with rice under the PDS. Such a move will help address the nutritional security, while giving a signal for farmers at the start of the kharif cropping season to plant more of these coarse cereals, he added.

 

'In the year of millets, it will be a win-win situation for the farmers, the government and the beneficiaries,' Kammaradi added.

Notwithstanding India’s efforts to diversify its merchandise exports, the country’s dependence on the US for its outbound shipments has increased over the past 12 years by 7 percentage points to touch 17.4 per cent share in 2022-23 (FY23).

 

In contrast, the share of the US in India’s total exports has continuously declined from a high of 21.7 per cent in 1998-99 to a low of 10.1 per cent in 2010-11, reveals India’s Department of Commerce data. During the pandemic years of 2020-21 and 2021-22, the export share of the US was even higher than the FY23 levels.

 

In its vision statement released during the mid-term review of the 2015-2020 foreign trade policy in 2017, the Ministry of Commerce said the policy of market diversification that has stood India in good stead during the global economic downturn will continue to be a key determinant of the country’s trade policy, together with product diversification.

India and the UK concluded the tenth round of talks for a proposed free trade agreement (FTA) last week, and the next round of negotiations is due to take place in the coming month, the government said on Monday.

 

Technical discussions were held across 10 policy areas in over 50 separate sessions and detailed draft treaty text discussions took place in these areas.

 

'On June 9, India and the United Kingdom concluded the tenth round of talks for an India-UK FTA,' the commerce and industry ministry said in a statement.

 

The negotiations for the agreement were launched on January 13, 2021.

 

The talks included detailed draft treaty text discussions in these policy areas, it said, adding, that the eleventh round of negotiations is due to take place in the coming month.

 

The bilateral trade between the countries has increased to $20.36 billion in FY23 from $17.5 billion in FY22.

 

India’s main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, while key imports include precious and semi-precious stones, ores and metal scraps, and engineering goods.

There is a need for farmers to get their unique jackfruit varieties registered with PPVFRA (Protection of Plant Varieties and Farmers’ Rights Authority), according to Sanjay Kumar Singh, Director of the Indian Institute of Horticultural Research (IIHR).

 

Speaking to businessline on the sidelines of a jackfruit festival at Puttur in Dakshina Kannada district of Karnataka, he said the varieties registered under this get royalty on the price at which the plant is sold.

 

Research institutions like IIHR help farmers get such varieties’ medicinal value, usage, and processing value. These registered varieties can be commercialised. IIHR also aids in propagating the farmers’ varieties. When such varieties are cultivated on large areas, quantity increases, and this paves the way fororganised retail.

 

He said jackfruit grows in different States of the country and in tropical, sub-tropical, arid and semi-arid regions.

 

Process at least 60% of output

Stating that IIHR, Bengaluru, has conserved around 400 varieties of jackfruit, he said it is collaborating with farmers in different regions where the jackfruit diversity is there. Apart from cataloguing, the institute conserves them at its centre. These varieties have different characteristics in size, colour of the flake, nutritional value and the season of ripening.

 

He suggested that the state biodiversity boards spend money on conserving unique varieties of jackfruit. Such an effort can help conserve such varieties at research institutes and germ-plasm sites designated by the Indian Council of Agricultural Research.

 

Stakeholders in jackfruit sector should make efforts to bring at least around 60 per cent of the production to the processing sector so that processed products are available throughout the year. He said there is a need to develop jackfruit joints like modern food joints. All the dishes, processed products and planting materials should be available in such joints, he said.

 

In fact, raw jackfruit is emerging as a vegan meat in India and abroad, and the stakeholders should take advantage of such preferences of consumers, he said.

 

The United Nations fund for agricultural development has lauded India for reviving focus on millets and exporting 1.8 million tonnes of wheat to 18 countries that faced an acute shortage of food last year in the wake of the war in Ukraine. Alvaro Lario, the president of the International Fund of Agricultural Development (IFAD), also said that India's G20 presidency has the potential to 'transform' the global food systems as some of New Delhi's priority areas are in sync with that of the UN body.

 

In an exclusive interview to PTI, Lario, a noted development finance expert, said the Indian expertise could support the agricultural and rural development in other countries in the Global South.

 

'We also appreciate India's exports of wheat - 1.8 million tonnes - to 18 countries facing an acute shortage last year in the wake of the war in Ukraine,' he said.

 

Lario was in India to attend the G20 agriculture ministers meeting.

 

The IFAD is a specialised agency of the UN that has been focusing on financing projects in various poor and vulnerable countries to help them battle poverty, hunger and food insecurity.

 

'India has also shown thoughtful leadership in South-South cooperation. I very much appreciate, for instance, India's focus on the revival of millets,' he said.

 

'We've seen that millets are an important crop for farmers to adapt to climate change, given that they're drought resistant, and to ensure nutrition in some of the poorest and most remote parts of the world,' Lario added.

 

The IFAD president said India can play a global role in its capacity as the G20 president to transform global food systems.

 

'India's G20 presidency has the potential to transform food systems. A food system includes all the aspects of feeding and nourishing people: growing, harvesting, packaging, processing, transporting, marketing and consuming food,' he said.

 

'Food systems have been shaken to the core in the last few years --cumulative shocks have reversed years of progress and exposed their weaknesses,' he added.

 

The Covid-19 pandemic, war in Ukraine and climate change have severely impacted the global food security that has triggered a food crisis in the African countries.

 

India has been strongly flagging the consequences of the Ukraine conflict on food, energy and fertilisers which have impacted the Global South or the developing countries

 

'The war in Ukraine has led to a humanitarian crisis. It has led to increasing food and fuel prices globally, which in turn is impacting the world's most vulnerable people,' Lario said.

 

'In addition to limiting the provision of grains, it is limiting affordable access to energy and fertilisers. This has been catastrophic for the ability of small-scale farmers - who grow at least one-third of the world's food -to keep producing food and also their ability to access markets,' he said.

 

Ukraine has been a major global supplier of wheat and the Russian invasion of the country resulted in a global food crisis as the supplies were badly hit.

 

Lario said the 'ripple effects' of the war in Ukraine, compounded with other ongoing crises, are a reminder that there is a need to invest heavily in medium to long-term development to avoid being caught again in a similar 'costly crisis'.

 

'The key areas identified by the Indian G20 presidency for food systems transformation - ensuring global food security and nutrition; promoting climate-smart agriculture; building inclusive and pro-poor value chains; and using digital technology to create smart solutions -- are the same areas IFAD is concerned about,' he said.

 

Lario also complimented India's overall success in becoming a food surplus country from a food deficit one.

 

'India has long been an important partner for IFAD -- it is a founding member, and our largest borrower, and also one of our top 15 donors. The impressive progress India has made, going from a food deficit to a food surplus country, can clearly serve as an example for countries facing similar issues,' he said.

 

The IFAD president said at New Delhi's invitation, IFAD has supported India to strengthen its focus and share its experience on local production systems and building markets and resilience.

 

'It is estimated that we need between USD 300 billion to USD 350 billion per year to revamp food systems. This is not even 3 per cent of the money wasted through the inefficiencies of the current global food systems each year,' Lario said.

 

'It is less than 0.5 per cent of the global GDP. The IFAD's expertise and long-standing partnership with governments can help make public investment more efficient, and food systems more attractive to private investors,' he said.

 

The IFAD president also noted that small-scale farmers produce up to 70 per cent of the food consumed in low and middle-income countries and they often bear the brunt of climate change and other natural disasters.

 

'We need climate finance both to mitigate emissions and to help economies adapt to the change. The current pace of action is not enough to meet global commitments under the Paris Agreement.

 

'Between 2017 and 2018, small-scale producers received only USD 10 billion, or 1.7 per cent of climate finance.,' he added.

Stating that the agriculture sector is facing several challenges globally, Prime Minister Narendra Modi on Friday urged the G20 Agriculture Ministers Meeting to deliberate on how to undertake collective action for achieving global food security. In a video message to the three-day meeting underway in Hyderabad, Modi said climate change is causing extreme weather events more and more frequently, and these challenges are felt most by the global South.

 

'Globally, agriculture provides livelihood for over 2.5 billion people. In the global South, agriculture accounts for almost 30 per cent of the GDP and over 60 per cent of jobs and today this sector faces several challenges. The supply chain disruption caused by the pandemic has been worsened by the impact of geopolitical tensions,' the Prime Minister said.

 

'Climate change is causing extreme weather events, more and more frequently. These challenges are felt most by the global South,' Modi added.

 

He said India's policy is the fusion of 'back to basics and march to future' even as the country is promoting natural farming as well as technology-enabled agriculture.

 

Modi said farmers all over the country are taking up natural farming by not using synthetic fertilisers or pesticides with a focus on rejuvenating mother Earth.

The G20 Agriculture Ministers’ Meeting during 15-17 June 2023 adopted the agreed outcome document titled 'Outcome Document and Chair’s Summary' . This historical consensus was reached after deliberations on various issues centred around the agriculture sector wherein leadership of G-20 developing countries was envisaged.

 

The Ministerial meeting started on 16 June 2023, with a plenary session with the welcome address by Shri Manoj Ahuja, Union Agriculture Secretary. This was followed by a video message by Prime Minister Shri Narendra Modi who graciously welcomed the excellencies and distinguished delegates. Prime Minister Shri Narendra Modi highlighting that agriculture sector lay at the heart of human civilization, called upon the G-20 Agriculture Ministers to work collectively to further the future of humanity by addressing the challenges faced by this sector.

 

Prime Minister Shri Narendra Modi   emphasised on the four priority areas for discussion during the G20 Agriculture Ministers’ Meeting: (a) Promotion of agricultural diversity and improvement of social security systems to enhance food security and nutrition (b) Financing climate-friendly technologies and adopting a climate-smart approach based on agricultural system models for sustainable agricultural production (c) Strengthen infrastructure for small and marginal farmers, women and youth and make use of growing economic opportunities to promote inclusive agriculture value chains and food systems to enhance the resilience and efficiency of the chains (d) Leverage digital technologies to improve digitization for the transformation of agriculture and focusing on standardization of agricultural data platform which are a part of digital public goods. 

 

Prime Minister Shri Narendra Modi stated that 2023 is also the International Year of Millets. Millets/ Shree Anna/ superfoods are not only good for health but also help farmers achieve sustainable livelihoods by promoting income diversification and building climate resilience. India’s commitment to share best practices, research and technologies in ancient grains and cereals was reaffirmed.

 

In light of the present global supply chain disruptions due to the pandemic and worsened by the impact of geopolitical tensions and climate change, Prime Minister Shri Narendra Modi urged the G20 member nations to explore ways to adopt agricultural practices for better soil health, crop health and yield and empower our farmers with innovation and digital technology.

 

Union Agriculture and Farmers Welfare Minister Shri Narendra Singh Tomar welcomed the ministers and Heads of Delegations (HoDs) to the plenary session. Dr Ramesh Chand, Member, NITI Aayog made a presentation on 'Global Food Security and Nutrition' highlighting the present day challenges and possible solutions. Union Ministers of State for Agriculture Shri Kailash Choudhary and Ms. Shobha Karandlaje, Director General of ICAR and Secretary of DARE Dr. Himanshu Pathak, Secretary - Department of Fisheries Mr. J.N. Swain along with other senior officials and high-level officials of G-20 countries and heads of invited organizations were also present.

 

Agriculture Minister also shared with his colleagues that India hosted the Voice of Global South Summit 2023 virtually under the leadership of Prime Minister Shri  Narendra Modi during 12-13th January 2023. Voice of Global South Summit 2023 was held under the theme 'Unity of Voice, Unity of Purpose'. India’s goal was to consult developing countries not represented in G20, on their developmental priorities and what they expected India to achieve through its presidency. The idea was to ensure that developing countries feel better engaged with the G20 process and, in turn, G20 could produce better results to promote 'human-centric development.'

 

Highlighting India's achievements in the agriculture sector, Agriculture Minister   mentioned that India’s approach towards food security and nutrition was guided by the G-20 Indian Presidency spirit of 'One Earth, One Family, One Future'. The commitment to achieve SDG 2 - ending hunger, and attaining food and nutrition security was also reiterated. Agriculture Minister also shared the importance of the launch of the mission on 'LIFE (Lifestyle for Environment' on the occasion of the United Nations Framework Convention On Climate Change (UNFCCC COP-26) by Prime Minister Shri Narendra  Modi as it would lead to more efficient use of natural resources and reduce emissions.  

 

Agriculture Minister lauded the G20 Members for their notable contributions towards making the Agriculture Working Group proceedings successful and historic which resulted in the welcoming of two key outcomes in the 'Outcome Document and Chair’s Summary' during the Ministerial meeting: (a) Deccan High Level Principles and (b) International Millets and Other Ancient Grains Research Initiative.

 

India’s efforts to steward and enhance the agricultural agenda were appreciated by all the G20 Members and deep gratitude was expressed.  

 

The Deccan High-Level Principles demonstrated the G20 collective responsibility in reinforcing and complementing efforts across geographies in response to global food security crises by means of facilitating humanitarian assistance to countries and populations in vulnerable situations; enhancing availability and access to nutritious food and strengthening food safety nets; strengthening policies and collaborative actions for climate resilient and sustainable agriculture and food systems; strengthening resilience and inclusivity in agriculture and food value chains; promoting the one health approach; accelerating innovation and the use of digital technology and scaling up responsible public and private investments in agriculture.

 

Prior to this, three other important meetings were held in Indore, Chandigarh and Varanasi. During the G20 MACS meeting in Varanasi, ' International Millets and Other Ancient Grains Research Initiative (MAHARISHI)' was launched.

 

India's G-20 priorities in agriculture are focused on healing our 'One Earth', developing harmony in our ‘One Family’ and providing hope for a brighter ‘One Future’.

The Directorate General of Foreign Trade (DGFT) put an enabling clause last month in its prohibition order for export of broken rice allowing exports on government to government (G2G) basis in order to meet requests from some African nations, official sources have said.

 

'There is only limited G2G demand for broken rice. It is mostly from African nations. When the DGFT came up with prohibition order on export of broken rice, the government had thought that there would be no demand from governments as there are sources other than India. But then the situation changed,' an official tracking the matter told businessline.

 

According to a notification issued by the DGFT on May 22, while the export policy of broken rice is prohibited, exports will be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their government.

 

'If you look at our previous export ban notifications for wheat and wheat flour banning, we kept a provision like this allowing exports on a G2G basis in the original notification itself. In the case of notification on export ban on broken rice, such a provision was not there. Hence, an amendment had to be done when requests for exports started coming in,' the official said.

 

The requests for exports have come in for small quantities which will not affect India’s domestic stocks or food grain availability, the official said.

 

'It is mostly African countries that put in requests for broken rice, at least till recently. The exports on a G2G basis are unlikely to make a any significant dent in India’s food grain stocks,' the official said.

 

Export ban impact

The Centre placed a ban on export of broken rice in September 2022 due to an increase in its price, a shortage in supply for domestic requirements, and a steep increase in exports.

 

India’s exports of broken rice fell 13.9 per cent in 2022-23 to $983.5 million from $1.13 billion the previous fiscal. Exports got heavily curbed after the export ban.

 

India’s wheat and rice stock in the Central Pool is comfortable at over 57.9 million tonnes (mt) and the country can meet its foodgrain requirements, the Food Ministry said in a statement earlier this month.

Agriculture remains a vital pillar of the Indian economy and plays a central role in the nation’s socio-economic development. It contributes approximately 19 per cent to the GDP and supports a significant majority of the population, with about two-thirds of people relying on it.

 

The performance of agriculture has far-reaching implications for the growth of other industries and the overall economy, as it is interconnected through backward and forward linkages. It not only serves as a source of livelihood and food security for a large portion of the Indian population but also holds special importance for many FMCG organisations.

 

According to the National Sample Survey, the average monthly income per agricultural household has witnessed a notable increase from Rs.6,426 in 2012-13 to Rs.10,218 in 2018-19. The government has implemented various measures in targeted areas to bolster farmers’ income. The PM KISAN Scheme ensures income support for farmers, while the Pradhan Mantri Fasal Bima Yojana provides crop insurance coverage. Additionally, the Pradhan Mantri Krishi Sinchai Yojana focuses on enhancing irrigation facilities.

 

Farmers also have access to institutional credit through initiatives such as the Kisan Credit Card and other channels. More recently, the Union cabinet approved a scheme that plans to allocate Rs.1 trillion towards expanding cooperative sector storage capacity by 70 million tonnes. This ambitious project, set to become the world’s largest grain storage plan within the cooperative sector, aims to address key challenges faced by farmers and strengthen the country’s food security.

 

Let us delve into the significant benefits that this ambitious plan holds for India.

 

Empowering farmers, expanding opportunities

The increase in grain storage capacity on such a monumental scale will empower farmers to think beyond traditional boundaries. With the ability to store their produce effectively, farmers can now explore large-scale production and tap into export markets. This newfound flexibility will enable them to maximise their outputs, leading to increased incomes and a brighter future for farming communities across the nation.

 

Price stability, reduced distress sales

Inadequate storage facilities often force farmers into distress sales, negatively impacting their income and perpetuating a cycle of losses. However, with a significant expansion in storage capacity, the risks associated with crop damage and distress sales can be minimised. The availability of proper storage infrastructure will ensure that farmers can store their produce efficiently, reducing wastage and stabilising prices. This stability will not only benefit the farmers but also provide consumers with a consistent supply of essential food grains at reasonable prices.

 

Economic impact, raw material availability

The scale of this storage capacity expansion will have a profound impact on the Indian economy as a whole. With a more stable agricultural sector, India can become a reliable source of raw materials throughout the year, bolstering various industries such as food processing, FMCG, and agribusinesses. This reliable availability of raw materials will enable these sectors to flourish, attracting investment, creating jobs, and boosting economic growth in both rural and urban areas.

 

Strengthening food security, meeting global commitments

Food security is a global concern, and India, as a member of the G20 and currently holding the G20 presidency, recognises the importance of addressing this issue. By significantly increasing grain storage capacity, India aims to enhance its food security measures, reducing its reliance on food grain imports. With a more robust storage infrastructure, the country can better manage its buffer stock and ensure a consistent supply of essential food grains to its citizens. This achievement aligns with the goals set by the G20 in achieving sustainable food security for all. Through this concerted effort, India aims to contribute to a more secure and resilient food system, ensuring a consistent supply of nutritious food for its citizens and beyond.

 

Job creation, rural development

The expansion of storage facilities in rural areas will create numerous employment opportunities. The construction, management, and maintenance of warehouses and storage units will generate jobs, boosting rural development and improving the standard of living for those residing in agricultural communities. The increased economic activity in these regions will lead to overall prosperity and contribute to the equitable growth of the nation.

 

Boosting FMCG sector, sustainable agriculture

The FMCG sector will experience a significant boost as a result of this ambitious storage capacity plan. With improved storage infrastructure, the sector can rely on a consistent and abundant supply of raw materials, enabling them to scale up production and meet growing consumer demands. This expansion will foster innovation, investment, and competition, resulting in a dynamic FMCG sector that contributes to the country’s economic growth. Additionally, sustainable agricultural practices can be encouraged through the efficient management of stored grains, reducing wastage and promoting resource conservation.

 

Conclusion

India’s ambitious plan to establish the world’s largest grain storage capacity in the cooperative sector is poised to revolutionise agriculture and the FMCG industry. By empowering farmers, stabilising prices, strengthening food security, creating jobs, and bolstering the FMCG sector, this visionary scheme promises to transform the agricultural landscape of the country. As India works towards achieving its global commitments and fostering sustainable agricultural practices, the storage capacity expansion plan stands as a shining example of India’s dedication to economic growth, food security, and rural development.

The government is working on a framework to assess the logistics cost in the country and is expected to get a realistic estimate by September, a senior DPIIT official said on Friday. At present, the government is going by certain estimates, which suggest that India's logistics cost stands at about 13-14 per cent of the country's GDP (gross domestic product).

 

Special Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Sumita Dawra said that the government is coming out with its logistics cost framework.

 

'So our framework is being done with the help of our technical partner and it's almost done. But then we have to calculate and I think by the month of September, we will have realistic logistics costs in the country. We will define what are the components and we will have our own estimates,' she said while speaking at CII's conclave on trade facilitation.

 

Logistics cost plays a key role in facilitating trade and enhancing the competitiveness of traders.

 

The department conducted a workshop in March on the logistics cost framework, and a task force was set up to formulate a framework to determine the cost in the country.

 

The task force members include representatives from Niti Aayog, the Ministry of Statistics and Programme Implementation (MOSPI), the National Council of Applied Economic Research (NCAER), academic experts, and other stakeholders.

 

The government has rolled out a national logistics policy and PM Gati Shakti initiative to boost the competitiveness of the industry and cut logistics costs.

 

Speaking at the conclave, Sanjay Budhia, Chairman of CII National Committee on EXIM and Managing Director of Patton Group, said that continued focus on creating a paperless trading ecosystem by measures like faceless assessment, risk management system, and direct port delivery have started showing results at the ground level.