Tuesday 12 October 2010

Hunger persists, despite high growth

The Hunger scenario has not much changed in the Indian waters, despite the bigger claims of growth and super-power. Unlike, China and other developing nations, the growth has not translated in reducing the hunger and not even percolated to the larger and needy sections of the society. India, still ranks 67th in an 84-country ranking and has more hungry people than its neighbouring countries. Agri reforms must be used to tackle the menace of hunger, as expressed by Asia Director of IFPRI, a US based Food Policy think tank. Gulati pointed out China has been successful in expanding its economy fast, with reforms in agriculture followed by manufacturing and services sectors. "On the contrary, India''s growth story is more focused on services sector, especially IT and telecom. Agriculture sector is still waiting for reforms," he noted. World Development Report of 2008 states that one per cent agriculture growth is 2-3 times more effective in reducing poverty.

“State governments do not allow leasing of land while China leased land for 30 years. Agriculture in India is the most controlled sector,” said Gulati. India's agricultural growth in 2009-10 fell to 0.2 per cent, while it was 1.6 per cent last year. Akhter Ahmed, senior research fellow at IFPRI, said India is following the failed Soviet Union model. “Why is the government storing more than 100 per cent buffer stock resulting in rotting of foodgrains? The level of buffer stock to be maintained should be based on research as storing food grains is a costly affair.” “Countries like Pakistan and Bangladesh that have fared better than India abolished ration system in 1990s as it has corruption and leakage issues. Bangladesh started a programme where it distributes 30 kg rice or wheat to a family that sends its child to school. Such policies helped in long term poverty reduction,” said Akhter. “We need to change the public distribution system by linking unique identification number with bank accounts and have conditional cash transfer where the beneficiary should be allowed to buy from 15 listed food items,” said Gulati.

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