THE PALM OIL DILEMMA-INDIAN ROLE

Two countries which are on the dock for destroying forests at an alarming rate for cultivating commercial crops are Brazil and Indonesia. While sugar cane cultivation is being expanded recklessly after deforestation in Brazil, Indonesia is attracting world-wide criticism for the mindless destruction of its tropical forests for planting Oil Palm. The disastrous consequences of deforestation are well known in the form of increased carbon emissions worsening the global warming problem which is putting this planet on peril. Deforestation also destroys the flora and fauna of the region, hurtling some of them into extinction. The issue has two sides-one linked to the economic well being of people depending on palm cultivation and export of the oil while the other concerns the global community which is seriously worried about the ill-effects of green gas emissions. India has been dragged into this emerging controversy because of its over dependence on imported palm oil from Malaysia and Indonesia. The complexity of the problem is addressed in the following critique though no solution seems to be in sight for overcoming the same.   

"The lush Indonesian rainforest cover is being stripped at an alarming rate for illegal logging and palm oil plantations due to demand for the commodity in India. Companies catering to domestic needs have failed to ensure clean and sustainable source of the cheap palm oil, resulting in the rapid destruction of the rainforest which is home to thousands of plant and animal species, a Greenpeace report has stated. The report 'Frying the forest – how India's use of palm oil is having a devastating impact on Indonesia's rain forests, tigers and the global climate', was released recently in Mumbai. "The issue is that India is the biggest importer of palm oil with imports of 7.2 million tonnes per year. As the world's largest user of palm oil, India has an opportunity and a responsibility to ensure that its purchases of products such as palm oil are coming from responsible sources and aren't linked to rain forest and peat land destruction, and the resulting climate-changing emissions," Nandikesh Sivalingam, Greenpeace forest campaigner, said during the release of the report here. Mr G. Chandrashekar, noted journalist, while releasing the report said that the world cannot survive without palm oil because it is a cheap source of calories, but neither can it afford to destroy its rainforests. He said it was time for oil-producing countries to follow strict rules and regulations to protect the rain forest".

Probably Governments in India during the last 3 decades are to be partially blamed for making the country over-dependent on imported edible oils. This is due to the faulty implementation of policies that would have allowed increased production of oils from sources like groundnut, mustard, sesame, soybean etc for which Indian farmer has the necessary experience. In stead a crop like sugar cane is promoted which has tremendous water requirement and other inputs like chemical fertilizers and pesticides.  The 1990 Oilseed Mission of Government of India, planned and executed with no missionary zeal had flopped wasting millions of rupees without any significant increase in production. The domestic production is almost stagnant during the last two decades while the demand was growing at a frenetic pace. The new certification system by the Greenpeace movement that promotes palm oil produced by sustaining cultivation practices is yet to be accepted universally and blaming India for buying this commodity from those producers who do not have such certification may not be justified. After all as a responsible government, it is its bounden duty to provide adequate food to its citizens and under the present conditions India does not seem to have any option but to continue to import palm oil from where ever it is available in the world market.  

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

THE "LANGUAGE" TOOL-DRAGON SPREADS ITS WINGS

That language can be a powerful tool in striking bon homie amongst human beings, is well known and there is nothing like the language which can create instant kinship. Probably this may be the reason that many countries in the Universe guard fiercely their language and promote the same with a sense bordering on fanaticism. Whether it is German, French, Japanese or Spanish those who speak these languages do not care for English which is considered the most spoken language in the world. Japanese, Koreans and Chinese are also proud of their language and are known to accord lower priority in practicing English. Probably economic stature of a country can give considerable clout in promoting the language of that country as exemplified by the Chinese attempts to spread their language across the world. Latest example is Indonesia where the Mandarin language is being made popular by the Chinese.

"The policy goes against decades of anti-Chinese hostility in Indonesia, which has the world's largest Muslim population. But things are changing, and the Chinese government is now sending hundreds of teachers to Indonesia, including one who has taught in Lamongan. As China's economic power grows, the study of Mandarin is surging around the world. Its rise in Indonesia may be one of the most telling examples of how China's influence is overflowing even the steepest of barriers".

Indonesia is a resource rich country and the Chinese know that it will be rewarding to establish their influence there. Language serves admirably well because there is a significant Mandarin speaking population living there for long, though they speak the local language also fluently. Chinese strategy is all the more striking considering the bad image they had in Indonesia till recently. The inability of Indian immigrants in Malaysia and Sri Lanka speaking Tamil to make any impact in their chosen countries may be a reflection on the psyche of Indians who do not mingle with the locals creating unnecessary barriers for kinship. It is ironical that the Chinese with their highly clannish attitude are able to spread their wings while Indians with considerable skills and command over English language are viewed with suspicion in many countries where they have emigrated long back.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

FOOD ESTATES-THE INDONESIAN VERSION

Land for food production is a burning issue to day as fertile lands are being diverted for other industrial operations and food production is on the decline in many countries due to uncertainties associated with cultivation. Indonesian initiative in converting its low quality land areas into food bowls through leasing and joint ventures is based on its perception that much more returns can be derived by attracting foreign investments in agriculture and deployment of modern cultivation technologies.

"One of the main priorities related to the agricultural and economic development of the first 100 days of the second term of SBY's administration is the preparation of a regulation on a large-scale food production system, the so-called "food estates". President Susilo Bambang Yudhoyono is scheduled to launch the "food estate" program in February. There are many controversies regarding the expected positive and negative impacts of the program and consideration of the potential benefits and losses after the program implementation has been hotly debated. While the formal regulation on the food estate program has not yet been announced, various national media have reported on the main ideas behind the food estate organization, citing information from officials at the Ministry of Agriculture. Food estates will be implemented in areas where huge tracts of empty land are still available and where it is not so populous, such as Merauke in Papua. In Merauke, only 2.49 million hectares of cultivable land is suitable for food production. Food and biofuel products will be produced under the program".

"The government will invite foreign and national corporations to participate in the program. Each investor can manage 100,000 hectares of land at the most under a first management rights agreement for a 35-year term, which can be extended for up to 90 years. Foreign investors from China, the United Arab Emirates, Korea and Singapore have shown keen interest in food estate investment. Major national investors reportedly have a similar interest in taking advantage of the opportunity to benefit from the program. Investors will be given various incentives and benefits, such as the food produced will be for export as the world food market is commonly better on price. In order to promote and protect national interests, the government will impose a maximum stake ownership for foreign investors at a level of 49 percent on each food estate".

It is surprising that Indian investors are not showing much interest in bidding for a "slice of the cake", knowing their appetite for highly profitable foreign investments in other countries. Chinese adventurism in agriculture is demonstrated again by their readiness to invest in Indonesia on food estate program. How Indonesia will react to the Chinese "mode" project management involving Chinese workers in large number is worth watching since such investments cannot generate significant employment generation locally.

V.H.POTTY

http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

INDONESIA-THE "DORMENT" GIANT OF ASIA

Food self-sufficiency is a goal every responsible government tries to achieve to avoid uncertainties of future supplies and achieve reasonable food security. Those countries blessed with plenty of water, vast land area and modern farming technologies have ample opportunities to control global food market through exports. Malaysian example in palm oil where it is the global leader can be emulated by other countries also with perseverance and dedicated pursuit. Indonesia is another country that has the potential to become a major player in international food landscape if adequate efforts are made from within.

"Given the global scenario, Indonesia must take full advantage of the situation by shoring up the food supply for its citizens, while at the same time becoming a food supplier to the rest of Asia and beyond. The country has all the necessary attributes — climate, plentiful rainfall, arable land and the necessary manpower — to become a major global food supplier. This will not happen automatically, however. It will take vision, the right policy environment and modern management to realize this opportunity. The two biggest challenges facing the government are land resources and the necessary policies to attract private investment into the sector. Potentially, the government can set aside 12 million hectares for large-scale food cultivation. This utilization of land, which would otherwise be left unproductive, would be a tremendous resource that could boost economic growth and create wealth. It could lead to the development of food processing and service industries that would create millions of jobs across the country".

Indonesia is already a major player in the global market with respect to palm oil, spices, tea and rice. As the largest economy in South Asia with a GDP of $ 511.7 billion and a per capita annual income of $ 3979, the country has the necessary core strength to build further on its varied resources. Being a democracy it has its own limitations in increasing the pace of reforms and decision taking unlike China where communism still prevails but with more exposure to international developments, Indonesia is bound to be a super power in the global arena in the near future.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com