Impact Of India S National Food Security Act On Domestic And International Rice Markets

Policy making in food security is at a crossroads in India, particularly for the rice crop. Whereas India has emerged has a leading rice exporter over the last two years, the government has also introduced a large food subsidy program called the National Food Security Act. The program requires that 33.6 million metric tons of rice per year be distributed to the marginalized rural and urban populations of the country. In this study, we analyze the long-term impact of India’s Food Security Act on its domestic rice market and the international market for rice. We specify and apply a structural demand-and-supply model to India’s rice market and link it with the world rice market, as part of a broad partial equilibrium modeling system of international agriculture commodity markets. We specifically focus on three different scenarios—subsidy as a price effect, subsidy as an inelastic income effect, and subsidy as an elastic income effect—under the broader framework of the National Food Security Act. We find that at the end of the projection period (the 2024/2025 crop year), as a result of the rice subsidy program, the consumption of rice increases significantly by 6,831 thousand metric ton (MT) in the case of the price effect while the inelastic income effect has little on production, consumption which increase by 265 thousand MT and 269 thousand MT, respectively and no impact on rice export of India.

This 2013 Global Food Policy Report is the third in an annual series that provides an in-depth look at major food policy developments and events. Initiated in response to resurgent interest in food and nutrition security, the series offers a yearly overview of the food policy developments that have contributed to or hindered progress in achieving food and nutrition security. It reviews what happened in food policy and why, examines key challenges and opportunities, shares new evidence and knowledge, and highlights emerging issues.

In recent decades, Ghana has experienced high economic growth and transformation, which contributed to the nation achieving the Millennium Development Goal targets on reducing extreme poverty and hunger. Against this background and in view of achieving the food and nutrition security targets of the Sustainable Development Goals, Ghana started a process of reviewing its food security and nutrition strategies and policies, including the overarching Zero Hunger Strategy. This discussion paper aims to contribute to this process by providing an update on the state of Ghana’s food and nutrition security. In addition to providing an overview of long-term historical trends at the national level, this analysis provides an overview of regional patterns of food and nutrition insecurity and recent changes across Ghana’s 10 administrative regions. Finally, the analysis identifies regional “hot spots” of food and nutrition insecurity. This paper confirms that Ghana has achieved substantial improvements in food and nutrition security overall, especially over the past decade. Nationwide, progress has been made in improving households’ economic access to food by reducing poverty and extreme poverty and in reducing chronic and acute child undernutrition. However, progress in reducing micronutrient malnutrition—particularly anemia and especially among young children—has been more modest. Across Ghana, large rural-urban gaps and regional differences—mainly between the north and the south—remain for most dimensions of food and nutrition security. In addition, Ghana is increasingly facing new nutrition-related public health problems that result from overnutrition and diets too rich in calories. Overweight and obesity among adults are rising rapidly in both urban and rural areas, leading to an increase in the risk of noncommunicable diseases. The rising double burden of malnutrition—that is, the coexistence of overnutrition and undernutrition, including micronutrient deficiencies—constitutes a challenge to public health and social protection policy. These new nutritional realities may make some existing food and nutrition security policies obsolete or even detrimental to nutrition security.

The recent escalation of world food prices – particularly for cereals - prompted mass public indignation and demonstrations in many countries, from the price of tortilla flour in Mexico to that of rice in the Philippines and pasta in Italy. The crisis has important implications for future government trade and food security policies, as countries re-evaluate their reliance on potentially more volatile world markets to augment domestic supplies of staple foods. This book examines how government policies caused and responded to soaring world prices in the particular case of rice, which is the world's most important source of calories for the poor. Comparable case studies of policy reactions in different countries, principally across Asia, but also including the USA, provide the understanding necessary to evaluate the impact of trade policy on the food security of poor farmers and consumers. They also provide important insights into the concerns of developing countries that are relevant for future international trade negotiations in key agricultural commodities. As a result, more appropriate policies can be put in place to ensure more stable food supplies in the future. Published with the Food and Agriculture (FAO) Organization of the United Nations

The study analyzes food inflation trends in India over the last decade. Annual trends show that different commodities have contributed to food inflation in different years and that no single commodity shows uniformly high inflation. A decomposition exercise shows that eggs, meat, fish, milk, cereals, and vegetables were generally the main contributors to recent food inflation. The contribution of pulses, except pigeon peas (arhar), and of edible oils remained low. Fruits and vegetables displayed a much higher degree of intrayear volatility, and high-weight commodities in the national consumption basket also showed very high inflation rates, which is a cause for concern. Results of the econometric analysis show that both supply and demand factors are important. Cereal and edible oil prices appear to be mainly driven by supply-side factors such as production, wage rates, and minimum support prices. For pulses, the effects of supply- and demand-side factors appear almost equal. The prices of eggs, meat, fish, milk, and fruits and vegetables appear to be driven mainly by demand-side factors.

The high level of inequality in China has been a focus of interest for policy makers and researchers. However, few studies have evaluated the trend since 2010. With changes in the economic structure and new policy tools introduced in recent years, a revisit of Chinese inequality should give us the latest information about its evolution and the impacts of these economic and policy changes on income distribution. This paper argues that after a quarter century of sharp and sustained increase, Chinese inequality is now plateauing and even turning down. The argument is made using a range of data sources and a range of measures and perspectives on inequality. The evolution of inequality is further examined through decomposition by income source and population subgroup. Some preliminary explanations are provided for these trends in terms of shifts in policy and the structural transformation of the Chinese economy. The narrative on Chinese inequality now needs to focus on the reasons for this great turnaround.

In the face of increasing environmental stresses, there is a critical need to improve water-use efficiency in many arid and semiarid agroclimatic zones. Drip irrigation is a high-efficiency irrigation technology that can improve water-use efficiency in currently irrigated areas and transform areas that are not otherwise irrigable in practice. Although adoption of drip irrigation is growing rapidly in India, adoption is low in neighboring Pakistan. The authors of this paper undertook a discrete choice experiment framed around the hypothetical subsidized purchase of a drip irrigation system in four districts of Punjab, Pakistan. The nonrepresentative sample of adopters and nonadopters in the study districts identified a clear increase in the valuation of drip systems in the first several years following adoption. This finding suggests that farmers may be unaware of the opportunities for the use of drip irrigation on their farms or the benefits that may accrue from such use. In addition, farmers’ aspirations for cropping systems under drip were better predictors of the valuation of drip systems than were current cropping patterns, implying that a different agricultural landscape might reasonably emerge under improved adoption of drip. Aspirations differed across the different agroecological zones and water regimes captured by this study. Aspirations to substitute wheat crops for fruits and vegetables were associated with a higher appreciation of the subsidy level, whereas aspirations to expand wheat were associated with a higher appreciation of the area covered by the drip initiative; together, these findings imply a degree of control over the extent of wheat production in the landscape via careful design of the drip subsidy program. Although the penetration of drip irrigation is not yet sufficient to draw inferences from a representative sample, these results suggest a number of ways in which drip irrigation may transform Pakistan’s agricultural landscape

Prolonged civil wars can have long-lasting adverse effects on food systems, leading to poverty and food insecurity. Overcoming food insecurity and land inequality is particularly difficult because of the highly politicized nature of conflict. This paper builds on the existing literature on food sovereignty to ensure sustainable livelihoods and community ownership of a resilient food system. We identify components of community food security to be strengthened in a post war reconstruction context. We study the impacts of the civil war on food and land administration systems, farmer struggles and current transitional justice process in relation to community food security in the Northern and Eastern Provinces in Sri Lanka and identify the technological, institutional, organizational, and infrastructural setbacks caused by conflict. It explores how such setbacks could be rectified and a resilient food system could be built in the postwar scenario.