Monday, September 1, 2008

Global Food Crisis: A Reality check

It is a ‘voiceless famine to voice less people’ in the poor nations, but when it comes to hunger even a newly born child cries loudly. People around the world are agitating because they are HUNGRY …..anyone listening?

“Unless there is a major change in policy, 600 million people worldwide will regularly go hungry by 2015. But it is the poorest in the world who face the disheartening future –800 million people did not have enough to eat on a daily basis even before the recent huge rise in prices.” –International Food Policy Research Institute (IFPRI)

Governments across the world –particularly in the countries across North Africa, from Mauritania to Egypt, and most of the countries in Asia –are looking nervously at rising food prices and wondering about the political impact if things do not ease soon.

So when it comes to food situation, where do we stand today? What is the real situation? How have we reached this situation? These are the few questions we need to ask to understand the present scenario. Food insecurity is not just about a lack of food, but includes poor nutritional quality of available food and constant worry about getting food in the future. Food shortage and soaring food prices have direct relation to each other.
Soaring food prices in the world

In deed, the world is experiencing a dramatic increase in food prices. During the first three months of 2008, international nominal prices of all major food commodities reached their highest levels in nearly 50 years while prices in real terms were the highest in nearly 30 years. Although the food market situation differs from country to country and future evolution remains highly uncertain, best projections suggest that food prices are likely to remain high in the next few years and high prices are expected to affect markets in most of the developing countries. Interestingly, the current price increase has enveloped almost all major food crop commodities.

The World Bank now believes that around 33 countries are in danger of being destabilised by food price inflation. A BBC report ‘The cost of food: Facts and figures’, divulges significant price rise in a single year –March 2007-March 2008. According to the report, corn price has gone 31% up, Rice 74%, Soya 84%, and wheat 130%.

Rising food prices are causing severe hardship and suffering across the globe. For many of the 800 million people who are already affected by chronic hunger, higher food prices can be devastating. Already their ranks are being swelled by many other millions of poor people who now find themselves unable to buy the food that their families need for a healthy life. It is not surprising that this is provoking social unrest across the developing world.

In recent months media has covered stories on the plight of hungry millions from around the world. There are reports of poor lining up in Pakistan, most days of the week, to get a chance to grab the free (some times leftover) food that is distributed by a few restaurants. Many women hid their faces, ashamed and embarrassed that their misfortune is being witnessed by others. This scenario has emerged as prices in Karachi's markets have jumped to their highest level in 30 years. In Ethiopian town of Shashamene, women walk for several hours with young sick severely malnourished children slung on their backs, to the treatment centre when the simple cure to their disease is adequate food, which they cannot afford. Thus, millions of children are at risk.

Besides seeking alms and benevolence of the rich, the poor people have also reacted to the phenomenal increase in the food prices through political actions such as protest march. Recently, tens of thousands of people in Mexico marched in protest against price rises for tortillas. People were angry and there were fights. About 40m Mexicans, who live on $5 (AED18.25) a day or less have Tortillas as a staple diet and when the price of tortillas rises, it is a big news, which effects 40 millions the most . Many hold American corn farmers responsible for diverting their crops away to produce bio-fuels.

Nearly two dozen people were injured in Bangladesh capital Dhaka, as police opened fire in air and used batons and tear gas to disperse thousands of protesters who turned violent while demanding a wage hike to meet the steep food prices. It is a ‘silent famine’ in the all the poor nations as grains get converted to biofuel and other food products in the chain also rise in price. Recently in Egypt and Philippines, similar riots have taken place. In United States common middleclass households are seeing their weekly grocery bill rising by 40 to 50% over the last two years.

Yemen has been affected significantly where the price of a 50-kg sack of wheat has increased from 3300 in the end of 2007 to over 7200 in 2008. Yemen's imports of wheat have doubled since 2004, while the percentage of domestic production of grains is providing the local market with around 8 % of the total market demand of grains. The Yemeni consumers with their grain demands, thereby making Yemen more vulnerable to the shocks of the international markets and the increasing costs of grains, which have resulted in considerable economic hardships for the people of Yemen.

Even India and China are facing food shortages and the common people are using credit cards to fulfil their food requirements. With food accounting for a third of China's consumer price basket and even more in other countries, the situation is a time bomb for the region. Global food prices have risen, stretching many families beyond breaking point. While food prices have increased significantly in past few years, there has not been any commensurate increase in people's incomes. African governments are watching anxiously. Food riots have been reported in recently in several countries. At least 40 people were killed in protests in Cameroon. There have also been violent demonstrations in Ivory Coast, Mauritania, Senegal and Burkina Faso, where a nationwide strike against any food price increases started. In Afghanistan, a country which produced over 90 per cent of its own food can now fulfil only two-thirds of the domestic requirements. Around two million tonnes of grain will have to be imported.

Most of the countries have similar story to tell. Poor have no choice, and they are forced to rely on the charity of others, because of the crippling effect of rising food prices. Poor spend 50 to 80 per cent of their meagre income on food.

So what is the alternative?

Shall we focus on development of agriculture sector with a positive mindset whereby the farmers get their due in terms of remuneration and return on investment commensurate to their labour and input value? Can we make agriculture a lucrative avocation? Can we really stop the migration of rural labour into cities and towns? Can there be an equitable distribution of food? These are a few very simple questions that must be considered by all the stakeholders including the nation states in order to diffuse the global food crisis.

No comments: