"DESI" FARMERS FLOURISHING IN "VIDESHI" LANDS!- A PARADOX!

A perennial question that has been begging for an answer in independent India is whether the country will ever be self-sufficient vis-a-vis the basic foods like cereals, pulses and edible oils? When the much hyped Green Revolution was at its pinnacle, many citizens in this country entertained hope that self-sufficiency was achievable one day or the other. But with each passing day the pessimistic population is increasing and for a valid reason. The agricultural policy of the country, if there is one, is a sham with neither the NPC nor the GOI having any clue regarding the direction the country is moving. Year after year the gap between demand and supply is widening at an alarming rate when it comes to pulses and edible oils. As for the cereals, though adequate production is being achieved to meet the statistical average per capita need, due to economic compulsions many poor families have limited or no access to them at affordable price. The global demand for food grains may provide an outlet to the surplus production of many farmers through export but the restrictive and unpredictable export policy of GOI is a dampener to such efforts. Naturally the suppressed entrepreneurial energy of aspirational Indian farmers can find expression only in a foreign land with free environment and minimum hassles by way of government interference. Here is the story of the farmers from Punjab region who are making it big in countries like Ukraine, Uzbekistan, Georgia and other erstwhile states of former Soviet Union, cocking a snook at the GOI leaving it red faced! 

Singh, 38, is one of a new wave of farmers pioneering one of the world's more unlikely migrations. During a recent spell as a cook in Dusseldorf, Germany, he heard about thousands of acres of fertile land on former collective farms lying fallow in Georgia for want of manpower. The contrast with his native Punjab, with its surging population and high land prices, was striking. So two months ago, he and three friends flew from Amritsar to Tbilisi, the Georgian capital, to seal a deal for the lease of 50 hectares. Back for a short break and some tandoori chicken, Singh said he was very happy with the move, even if he remains slightly vague about the geography of his new home. "We are paying $950 [£580] for each hectare for a 99-year lease. You'd not get much for that in the Punjab. I'm not sure if the farm is in the north or south but it is sort of over by Turkey and Armenia," he said.Singh and his associates are far from alone. A growing number of Punjabi farmers are heading for Georgia. Agents in major towns such as Jalandhar are advertising Georgian land deals and business is brisk. "It started a while back, just a dozen or so. Maybe now it is hundreds. Once words spreads there will be many. They come to me for passports. They are looking for pastures new," said JS Sodhi, the bureaucrat who issues travel documents in Amritsar, the nearest major city to Manochahal.The farmers of the Punjab, known as the grain basket of India, have long searched overseas for new land. An earlier wave of migrants went to Canada, where urbanization meant thousands of farms were empty. More recently, Punjabi farmers have been buying or renting thousands of hectares in Ukraine, Uzbekistan and across eastern and central Africa."Punjabi people are always going to different countries. They are very adventurous and enterprising," said Sodhi.

The success of these entrepreneurs will depend to a large extent on their ability to respect the local population and its ethos and culture. Identifying themselves with the local citizenry and working for their uplifting through better employment opportunities and working conditions can be expected to endear them to their country of adoption. The idea that foreigners are allowed to own land by these countries must have strong reason and that could be to increase food production to meet the local demand. Therefore any marketing efforts must keep in view the food situation in that country and at least a part of the local need must be met from the production achieved by the Indian entrepreneurs. Probably Indians can be expected to learn valuable lessons from their foreign enterprises in course of time and must keep in mind the catastrophic experience of early Indian settlers in Africa who had to flee from these countries under tragic circumstances. Let it be a win-win situation for both the Indians and the countries of their adoption.

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

SMALL IS BEAUTIFUL-CALL ON WTO TO RECOGNIZE THIRD WORLD REALITY

There is widespread impression that the globalization of food trade is heavily slanted in favor of large industry conglomerates leaving out the small and medium scale players. It is forgotten that most developing countries depend heavily on micro, small and medium scale enterprises for wealth generation and food production and progressively new global trade policies forced on developing countries are marginalizing these players affecting seriously the employment generation, land productivity and growth of agriculture sector to a very significant extent. Developing world has to thank Philippines for raising this issue at international forums and seeking appropriate re-prioritization of WTO policies and programs. Following excerpts reflect the concern of this country which is common to other similar developing nations.

"According to Domingo, the institutionalization of such framework is very important given that developing countries are comprised mainly of SMEs and poor small farmers whom he said, "are most vulnerable to market uncertainties and who would most benefit from a harmonized trading system and open and fair markets." Statistics show that as of 2009, there are 780,437 business enterprises operating in the Philippines. Of these, 99.6% are micro, small, and medium enterprises (MSMEs) and the remaining 0.4% are large enterprises. MSMEs generated a total of 3,595,641 jobs in 2009 versus 2,094,298 for the large enterprises. This indicates that MSMEs contributed almost 63.2% of the total jobs generated by all types of business establishments that year. MSMEs account for 25% of the country's total exports revenue. It is also estimated that 60% of all exporters in the country belong to the MSME category. MSMEs are able to contribute in exports through subcontracting arrangement with large firms, or as suppliers to exporting companies. Poor small farmers meanwhile mainly comprised the Philippine agricultural sector. The agriculture sector accounts for about 35% of total employment, but only contributes 15% of gross domestic product in 2009, Domingo said. Another area gaining more relevance for developing countries like the Philippines is "food insecurity." Domingo called on WTO member-countries to craft agreements and policies "that will provide support system to its farmers including an appropriate trade and non-trade policy environment that is conducive for their survival, and for food security." "While food aid and trade play roles, there is no substitute to bringing investments back to developing countries for productivity and greater production to meet the ever growing demand for food," he said.

In India agriculture is largely controlled by small farmers with average land holding just two acres in size and by western standards this is not a viable size for survival. Though GOI is trying to change land policies in favor of large holdings, it may take years before there is any consolidation of land in the country. There are vexing issues like fast urbanization, increasing diversion of agricultural land for industry and real estate conglomerates, landless labor, heavy dependence of agriculture on rains, stagnation of food production, all linked together and any long term solution must keep these factors in focus. Added to this India is still to come up with a national sustainable agriculture policy, all efforts made being ad hoc in nature. Unless there are clear perceptions regarding the role and fate of small and micro scale players, India cannot be in a position to fight in WTO forum for protecting the interests of this important sector.

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

TIGHTENING THE SCREW ON CHINA!-NEW PARADIGM FOR IMPORTS INTO THE US

Between China and India, which country is more affected by food adulteration and fraud is a matter of conjecture as realistic and reliable data are never available regarding food safety related episodes. But China "scores" over India when it comes to international notoriety for life threatening incidences of food poisoning and fraudulent practices. The Melamine tainted milk episode that killed scores of children a couple of years ago is still fresh in the memory of people though Chinese government is reported to be tightening its food safety and quality regulations to ruthlessly put down such profiteering activities at the expense of human health. Coincidentally the US which is almost a client state of China when it comes to trade, had their food safety regulations overhauled recently requiring more stringent inspections and monitoring of foods imported into that country. There is going to be a paradigm shift in the quality monitoring regime from inspection of imported foods after arrival in the US shores to pre-inspection at the manufacturing facilities in China itself for which adequate inspection personnel are being positioned. How far this new procedures would overcome import of substandard and safety compromised foods into that country remains to be seen. Nonetheless it can be considered a more reliable system and only future will tell whether it can be managed well.

"Fifteen percent of the food Americans eat is imported, including 80 percent of the seafood, and two-thirds of the fruit and vegetables. Our current food safety system can't even begin to keep tabs on the 24 million shipping containers loaded with food that the U.S. Food and Drug Administration estimates arrived this year from overseas. Increasingly, that food is coming from China, which has suffered a series of scandals involving tainted food. Enter the Food Safety Modernization Act, which became law earlier this year. One of its aims is to overhaul our 1930′s-era food inspection system, which relies on about 2,000 inspectors to monitor shipments at the ports. The law is why top FDA officials made the trek to Beijing this week, to the China International Food Safety & Quality Conference + Expo. Chinese producers ― or anyone who exports food to the U.S. ― will soon have to do more to prove to the companies that import their food that it's safe. Michael Taylor, the FDA's assistant commissioner for foods, told the crowd that the new law marks a fundamental shift from a system that relied on FDA inspectors detecting problems when food imports enter the United States. Rather than rely on port inspectors, the new system will be one "making importers accountable for verifying that their foreign suppliers have adequate preventive controls in place. Importers must manage their supply chains."

USA is one of the top food importing countries in the world and there has always been campaigns, some motivated and others genuine to cut down on such imports for fear of their safety. It was not long ago there were allegations that Chinese fish exported into the US are produced using poultry droppings as nutrients and food manufacturing and processing practices in many Asian countries were under a cloud. Whether the US likes it or not, with such heavy dependence on imported foods, there is no alternate option but to work with the supplier countries to improve the production environment to better their safety credentials. The role of private auditors has come under the scanner and for the success of the new safety monitoring management system integrity of safety auditors must be above suspicion. With corruption rampant in many developing countries how far importing countries like the US will be able to ensure the integrity of the auditors needs to be watched. A new set of performance standards for these auditors will have to evolved at the international levels with accountability on top of the agenda. One can only wish good luck to the prospective food importers where ever they are under such extenuating circumstances.

V.H.POTTY

http://vhpotty.blogspot.com/

http://foodtechupdates.blogspot.com

TRADE BARRIERS-REAL OR IMAGINARY?

Creating trade barriers is a practice indulged in by developed countries to protect their own markets from international competition. Food safety issues are often cited to reject imports which cause tremendous loss to the suppliers from exporting countries. It is funny that when the same safety issues are raised by others to ban products from developed world, the importing nations call it a "ploy" to harm their trade interests!

"China, Japan and "the Koreas" are resisting importing American beef, citing food safety issues.The U.S. system has been declared clean by the World Health Organization. It's a ploy to alter their trade with us. What they are doing is against trade rules,". This is a statement from one of the industry spokesman reacting to the continued ban on American beef in some countries.

If Americans are sure that their beef exports are unjustly being blamed as unsafe, they have the recourse to go to WTO against those who have banned their beef and file a sustainable claim providing adequate scientifically substantiated information. Probably the US may not have the wherewithal to do so as is evidenced by the spate of recalls of beef products in its own backyard due to contamination from harmful E.coli and Salmonella.

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

FOOD SAFETY COOPERATION-SOUTH ASIAN MODEL

Chinese Food Industry seems to be at cross roads after the notorious melamine tainted baby food scandal which affected thousands of children in the form of kidney failure. It is another matter that two of the culprits identified for the tragedy were mercilessly executed to provide a lesson and deterrent to future adulterators. Realizing the damage this has caused to the image of the country and future food exports, Chines government is going out of the way to woo neighboring countries through safety assurance cooperative pacts.

"Health ministers from the three countries signed the accord in Tokyo. The food safety memorandum was inked following the contamination scandal last year involving Chinese dumplings. Under the deal, the three nations agreed to notify each other immediately if a food safety problem surfaces and to clarify the process of investigation, said a joint statement. The Japanese are still pressing Chinese authorities to investigate the January 2008 incidents involving pesticide-tainted frozen dumplings. Japanese Prime Minister Yukio Hatoyama has supported closer ties with China but has also stressed that concerns over the safety of imported Chinese food were an "obstacle" between the nations".

Such cooperative agreements will go a long way to reassure the importing countries about the seriousness and intent of exporting countries in safeguarding the health of the consumers in the importing countries. In stead of such limited cooperative agreements, it is time that members of United Nations come together to evolve a common platform or protocol that can be used to resolve quality and safety issues as and when they crop up amongst the trading nations. Food safety is no more a national issue but transcends boundaries affecting the whole world.

V.H.POTTY

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