u patnaik what lies behind the food crisis in india and the global south

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    What Lies behind the Food Crisis in

    India and the Global South?

    Utsa Patnaik,

    Centre for Economic Studies and Planning

    Jawaharlal Nehru University

    New Delhi, India

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    Chart 1a Sectoral Output and GDP per Head, 1981-2 to

    2005-6

    Sectoral Output per Head and GDP per Head, 1981

    2 to 2005-6,Rupees in constant 1999-00 prices

    0

    5000

    10000

    15000

    20000

    25000

    30000

    1982

    -3

    1985

    -6

    1988

    -9

    1991

    -2

    1994-5

    1997

    -8

    2000

    -1

    2003

    -4

    2005

    -6

    GDP

    PRIMARY

    SECOND

    TERTIARY

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    Chart 1b Share of Sectors in GDP, constant 1999-00

    values

    SectorShares in GD Constant 1999-00 Values

    0

    10

    20

    30

    40

    50

    60

    1982

    -3

    1985

    -6

    1988

    -9

    1991

    -2

    1994

    -5

    1997-8

    2000

    -1

    2003

    -4

    2006

    -7

    PercentofGDP

    PR R

    C ND R

    R R

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    Chart 2a Annual Growth Rate per decade of

    Development and Total Expenditure, 1970-79 to 1990-99

    -1

    0

    1

    2

    3

    4

    5

    6

    7

    1970-79 1980-89 1990-99

    Annual Growth Rates per Decade of Development

    and Total Expenditures, %

    D V. X

    TOT L X

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    Chart 2b Annual Growth Rate of Spending on Economic

    and Social Services by States, 1972-79 to 1990-1999

    0

    2

    4

    6

    8

    10

    12

    1972-79 1980-89 1990-99

    Annu l Growth r t p r D d of Sp nding on

    E onomi nd So i l S rvi by St t 72 to

    ECON. SEVICES

    SOCIAL SERVCES

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    Chart 2c Decline in Rural Development Spending,

    1985-90 to 2003-4

    Rural Develeop ent xpenditure and

    Infrastructure xpenditure as Percent ofNNP

    under cono ic Refor s

    0

    1

    2

    3

    4

    5

    6

    7

    8

    1985-90 1993-4 1995-6 1997-8 2000-1 2003-4

    P

    ercentofNNP

    RD

    IF

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    Chart 3a Unemployment Rates 1993-4 and

    2004-5, All-India Rural, Female Workers

    Weekly and Daily tatus Une ploy entRates, 1993-4 and 004-

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    1993-4 2004-5

    Weekly status

    Daily tatus

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    Chart 3b. Unemployment Rates during 1993-4

    and 2004-5, All-India Rural, Male Workers

    0

    10

    20

    30

    40

    50

    00

    0

    90

    1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

    ast

    West

    North

    Weekly and Daily Status Unemployment Rates,

    1993-4 and 2004-5

    0

    20

    40

    60

    80

    100

    1993-4 2004-5

    Unem

    ploymentRat

    Weekly status

    Daily Status

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    Chart 4a Coconut Price Trend in India compared to

    Indonesia and Philippines, 1991 to 2003

    0

    50

    100

    150

    200

    250

    1991

    1993

    1995

    1997

    1999

    2001

    2003

    P

    riceinUS$perTon

    ne

    INDO NESIA

    INDIA

    PHILIPPINES

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    Chart 4b Index of Coconut Price 1991 to 2003, base

    1991=100

    0

    20

    40

    60

    80

    100

    120

    140

    160

    180

    200

    1991

    1993

    1995

    1997

    1999

    2001

    2003

    Index

    fC

    nutPr

    ducerPrice,

    =

    IND NESIA

    INDIA

    PHI IPPINES

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    Chart 4c Price Trend of Pepper 1999-00 to 2004-05

    0

    1000

    2000

    3000

    4000

    5000

    6000

    1999

    00

    2000

    01

    2001

    02

    2002

    03

    2003

    04

    2004

    05

    Pr ce n S$ per T nne

    Internation al

    Price

    Domestic Price

    Vietnam M Price

    Indonesia M Price

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    Chart 4d Index of Pepper Price 1999-00 to 2004-05 with

    base 1999-00 = 100

    0

    20

    40

    60

    80

    100

    120

    1999

    -00

    2000

    -01

    2201

    -02

    2002

    -03

    2003

    -04

    2004

    -05

    IndexofPrice,

    -

    =Internation alPrice

    Domestic Price

    ietnam Price

    Indonesia

    Price

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    Chart 4e Recent Price Changes, March to December 2008 (Rs. Per

    uintal except Cardamom which is Rs. Per 10 kg)

    Price change from March to December 2008

    0 5000 10000 15000

    Coff

    C mom

    Rubb

    Coco ut

    D cember

    Jul

    M rch

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    Chart 5 Farmer Suicide Rate compared to General

    Suicide Rate 2001

    Farmer Suicide Rate compared with General

    Suicide Rate, Census 2001

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    20

    M le Fem le

    N

    umberper100,000

    F rmerSuicide R te

    Gener l Suicide R te

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    Chart 6 Direct, Indirect and Total Demand for

    Grain with Rising Income

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    Chart 7a Decadal average Foodgrains Growth rate

    and Population Growth rate, 1981 to 2008

    Decade average oodgrain Ou pu Grow h and

    opu ation Growth Rates, 1980-1 to 2007-8

    0

    0.5

    1

    1.5

    2

    2.5

    3

    1981-90 1991-2000 2001-08

    Percentperannu

    FG

    POP

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    Chart 7b Foodgrains Output and Availability per Capita, India 1989-90 to

    2007-08 in Kilograms per Annum

    Note : Output is Net Output = 0.87.5 times Gross Output

    Availability = Net Output + Net Imports Net Addition to Public Stocks. Both variables divided by total population for per capita values. Chart

    updated to 2007-08 from Patnaik, 2007b

    (Trienni l ver ge in Kg. perAnnu )

    135

    140

    145

    150

    155

    160

    165

    170

    175

    180

    185

    1991-

    92

    1994-

    95

    1997-

    98

    2000-

    01

    2003-

    04

    2006-

    07

    Foodgrin

    ,Kg.per

    pit

    OUTPUT

    A AI ABI IT

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    Chart 7c Change in Protein Intake, Gms per Capita,

    2004-5 compared to 1993-4

    Ch nge in Protein Int e, G . perCapita , -5co pareto

    3-4

    0

    20

    40

    60

    80

    100

    120

    -60 -40 -20 0 20 40 60

    Change in Protein Intake

    C

    u

    ulatiepercentof

    Peron

    Percent of Persons

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    Chart 7d Output per Capita per annum of Cereals

    and Starchy Roots in China, 1988 to 2002, in

    Kilograms

    Per capita supplies of cereals and starchy roots, China , 1988-

    2002 (Kgs)

    50

    70

    90

    110

    130

    150

    170

    190

    210

    1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

    cereals

    starchy roots

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    Chart 7e Six most populous Countries in Sub-

    Saharan Africa: Index of per Capita Cereals and All

    Food staples Output, Base 1979-81 = 100

    Six Most Populous Countries : Index ofper

    Capita Cereals and All Food staples Output, Base

    19 9- 1 = 100

    0

    20

    40

    60

    80

    100

    120

    1980 1988 1998

    Cereals

    ll F d

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    Table 1 The Rural Poor as Percent of Rural Population in

    India

    1973-74 1993-94 2004-05

    SS ROU D: 28th 50th 61st

    RURAL

    Direct Estimate

    MPCE, Rs. required for

    1. 2400 calories 56 325 790

    2. 2200 calories 49 260 700

    Percent of persons below

    3. 2400 calories 72 74.5 87

    4. 2200 calories 56.4 58.5 69.5

    Official Estimate

    5. Official poverty line, MPCE, Rs. 49 206 356

    6. Poverty percentage 56.4 37.3 28.3

    7. Calorie Intake at OPL 2200 1970 1820

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    Chart 8a Official and Directly estimated Poverty Lines, All-India

    Rural, 1973-4 to 2004-5 .

    0

    100

    200

    300

    400

    500

    600

    700

    800

    900

    19

    73-4

    19

    77-8

    1983 19

    93-4

    20

    04-5Mon

    thlypercapitaExpenditure,

    Rs.

    Official PL

    Direct PL

    Source: Table 1 lines 1 and 5. Official poverty lines update the cost of a 1973-4 basket while direct poverty

    lines apply the official nutrition norm to the current data at each point of time

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    Chart 8b Official and Directly estimated percent of

    Persons in Poverty, All-India Rural, 1973-4 to 2004-5,

    obtained by applying the respective Poverty Lines

    0

    10

    20

    30

    40

    5060

    70

    80

    90

    100

    1973

    -4

    1977

    -819

    83

    1993-4

    2004-5

    PercenoP

    er

    on

    Offi i l overty

    ercentage

    Direct overty

    ercentage

    Source: Table 1, lines 3 and 6.

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    Chart 8c Declining Calorie Intake accessible at Official Poverty

    Lines, All-India Rural 1973-4 to 2004-5

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    19

    73 4

    19

    77 8

    1983 19

    93 4

    20

    04 5CalrieIn

    akeperaypercapia

    Calories at

    Official overty

    Lineless 1000

    Official Calorienormless 1000

    Source : Table 1 line 7

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    Chart 9 Per Capita Cereal Output per Annum in Kg., World 1963

    to 2005 ( Five year average centred on specified year)

    Worl

    r

    i

    real

    K

    .

    0

    50

    100

    150

    200

    250

    300

    350

    400

    1963 1968 1973 1978 1983 1988 1993 1998 2003 2005

    Kilogram

    erA

    m,Kg.

    Per

    pi

    ereal Kg.

    Source: FAOSTAT after 1988 and for earlier years various issues, FAO Food Outlook

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    Chart 10 Use of Corn for Ethanol and declining net Output, USA

    U e E anol, U

    0

    50

    100

    150

    200

    250

    300

    350

    2002-3 2007-8 2008-9

    Million

    onne Corn tp t

    Net of thanoluse

    thanol fro

    Corn

    Source: US Department of Agriculture data