Business Daily from THE HINDU group of publications Saturday, Dec 02, 2006 ePaper |
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Agri-Biz & Commodities
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Agricultural Institutions Web Extras - Economy Farm investment must to fight poverty: FAO G. Chandrashekhar
Dubai , Dec. 1 Hunger and poverty continue to be the daunting problems across the world, especially in developing and least developed regions, and they require high priority and consistent action, the Food and Agriculture Organisation (FAO) said in its review of the State of Food and Agriculture 2006 held last week. Admitting that the problems are becoming complex and multidimensional, FAO has urged enhanced co-operation and coherence across sectors, with focus on hunger hotspots.
Food security situation
The global food security situation is getting truly scary. Worldwide, some 854 million people are chronically undernourished, of which, 820 million are in developing countries. India accounts for the largest number at 212 million, followed by Sub-Saharan Africa (206 million) and China at a distance (150 million). Although some progress has been made towards the MDG (millennium development goals) hunger reduction target, yet a lot remains to be done to fight poverty and reach anywhere near the goal.
Farm output growth
Reviewing global trends in farm output growth, FAO said agricultural production has outpaced population growth. With total crop and livestock production rising sharply from 2003 onwards, agricultural production growth has continued in recent years. However, not all developing regions have made equal progress in food production. Latin America and Asia-Pacific have shown strong growth since 2001. World cereal stocks have been declining in the last five years resulting in tightening supplies. From the peak level of 620 million tonnes (mt) witnessed in 2000, global cereal inventory is set to decline to about 400 mt in 2007.
No wonder, prices of basic foodstuffs have been rising.
However, in the long-run, real commodity prices have been declining, whether cereals, oil crops, meat, dairy or tropical beverages, FAO pointed out.
External assistance dips
Recommending investment in agriculture for food security and competitiveness, the review found investment in agriculture lagged where hunger was prevalent the most. External assistance to agriculture in recent years has fallen sharply.
From a high of about $23 billion in 1982, external assistance declined to approximately $12 billion by 2003. Worse, development assistance does not target the most needy countries.
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