Thanks to George W Bush, the Indian middle class has taken on global proportions of a greedy glutton. Noting that their numbers are more than the sum total of Americans, and that they are getting wealthier and demanding more food, more nutrition, Bush has built his simplistic theory of rising demand for food and sky-rocketing prices. Anyone in touch with reality will know that this is not the big picture by any stretch of imagination. Yes, the buying power of the middle class has increased. But take away the 350 million, and the rest that make the 1.2 billion, are still struggling to make ends meet. Rising prices of cereals and oils have meant less than a meal a day for many. Even the middle class that Bush has nailed, is consuming much less than the American populace. Data from FAO shows that the US consumption of cereals amounts to 14 percent of world cereals while India, with a sixth of the global population, consumes 9.3 percent. The growth rate of this consumption in the US is around 12 percent as against 2 percent in India.
Clearly, it is nothing more than a diversion tactic on the part of Bush who wishes to ward criticism on the food-ethanol policy at home. The heavy subsidies offered for diverting food crops for ethanol is perhaps the single most important factor contributing to high food prices. Last year alone, around 30 million tonnes of corn was diverted in the US to make biofuel. However, going beyond Bush and his theory, the rising food prices are a cause of concern. Even the UN Food Programme has expressed its inability to procure at these prices and has sought more funds. While there is no denying a rise in the consumption of nutritious foods in the developing world, factors like the drought in Australia, low productivity, rise in transportation prices and speculation in agricultural commodities have abetted the situation.
What is required is to put an end to subsiding food crops for biofuel, increase productivity of the land by providing better seeds and fertilisers to farmers, fund agricultural research in the developing world, put in place strong public policies along with private participation, and finally, balance domestic need with global trade compulsions. In a world that is becoming increasingly inter-dependent, the food crisis focuses on the need for global cooperation. The challenges of the future, whether it be the scourge of deadly diseases or shortage of foodgrains, will have to be addressed at the international level.
