Hidden costs of agriculture in India – The need to transform agri-food systems

Source: The post Hidden costs of agriculture in India has been created on the article “The need to transform agri-food systems” published in “The Hindu” on 5th December 2023.

UPSC Syllabus Topic: GS paper 3 – Economy- agriculture (issues of buffer stocks and food security)

News: The article discusses a United Nations Food and Agriculture Organization (FAO) report, highlighting the “hidden costs” of current farming methods. These methods, focused on a few crops and heavy chemical use. It affects the environment and health. In India, it is leading to poverty and health issues. The report suggests that diverse, more natural farming methods can reduce these hidden costs, benefiting farmers, health, and the environment.

What is Hidden cost of agrifood systems?

Hidden costs of agrifood systems encompass various aspects. These include environmental costs, such as greenhouse gas and nitrogen emissions, water usage, and land-use changes. Additionally, there are hidden health-related costs due to decreased productivity from unhealthy dietary patterns and social hidden costs associated with poverty and productivity losses resulting from undernourishment.

Major finding of the State of Food and Agriculture report by the Food and Agriculture Organization (FAO) of the United Nations are:

1. Present, global agri-food systems have hidden costs exceeding $10 trillion.
2. India’s total hidden costs of agrifood systems were approximately $1.1 trillion. Which makes it the third largest in the world after China ($2.5 trillion) and the United States ($1.5 trillion).
3. The current farming practices in India account for nearly 11% of India’s GDP in hidden costs, contributing to higher poverty levels.
4. In India, the burden of disease (productivity losses from dietary patterns) had the largest share (60 per cent) among hidden costs, followed by the social cost of poverty among agrifood workers (14 per cent), and then the environmental cost of nitrogen emissions (13 per cent).

What are the reasons for the hidden costs of current farming in India?

Impact of Green Revolution:  The Green Revolution in India increased hidden farming costs by promoting monocultures of rice and wheat, which now make up over 70% of agricultural production. This focus led to loss of seed sovereignty and Indigenous knowledge, reduced crop diversity, and increased farmer debt. By 2013, farmers’ debt-to-asset ratio had risen by 630% from 1992, showing the economic strain of these practices.

India’s Agriculture Policy (National Food Security Act 2013 and MSP): The National Food Security Act 2013 legally assures food at subsidized rates to 65% of households, around 800 million people. It increased priority to rice and wheat, for example, in 2019-2020, India focused on rice and wheat, procuring over 850 lakh MT, but only 3.49 lakh MT of coarse grains, less than 1% of the total. This led to a 20% decrease in coarse grain cultivation from 1966-1967 to 2017-2018, while rice and wheat cultivation increased by 20% and 56%, respectively.

This policy framework inadvertently encourages water-intensive and chemical-dependent farming practices. Which has led to a monoculture system, impacting biodiversity and soil health.

Global Market Influence:

Fluctuations in global markets, like with soy prices between 2021 and 2016, impact local farmer incomes.

Historical global trade relations, like the British-enforced exports of cotton, also shaped local production, aligning it more with global demands than local needs.

What should be done?

Shift to Multi-Cropping Systems: Diversify crops to enhance farmers’ well-being and nutritional outcomes. This can be achieved by implementing systems like ‘akkadi saalu’ in Karnataka, which involve mixing legumes, pulses, and oilseeds.

Reduce Chemical Usage: Gradually transition from chemical-intensive practices to natural farming methods. This can reduce input costs and improve soil health.

Rebalance Crop Allocation: Increase the cultivation and procurement of coarse grains and nutritious crops. This can be accomplished by decreasing the emphasis on rice and wheat to promote dietary diversity.

Policy and Subsidy Reforms: Redirect subsidies to support sustainable farming and diverse crop cultivation. There is a need to incentivize farmers for their eco-friendly practices.

Collaborative Efforts: Encourage collaboration among institutions, policymakers, and farming communities. This is essential for developing and implementing sustainable agricultural strategies.

Question for practice:

Discuss the reasons for the hidden costs of current farming in India.