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Intersection of Food Security and Trade Policy: India’s experience

Intersection of Food Security and Trade Policy: India’s experience. Ashok Gulati Chair Professor for Agriculture Indian Council for Research on International Economic Relations (ICRIER)

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Intersection of Food Security and Trade Policy: India’s experience

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  1. Intersection of Food Security and Trade Policy: India’s experience Ashok Gulati Chair Professor for Agriculture Indian Council for Research on International Economic Relations (ICRIER) Panel Discussion at the seminar on “Trade Policy Agenda: Harvesting Issues in Trade Agreement Negotiations and the Future of the World Trading System”” US Chamber of Commerce, Washington D.C., May 7, 2014

  2. Food Security & Trade Policy Interface in India: Outline • Basic tenet: Open trade policies can help improve food security • Then why is it that India does not open up food trade fully and permanently? • Delicate balance between food security of poor consumers and livelihood of small producers • Case study of edible oils and cereals in India. • What does it mean for trade negotiations?

  3. Rising imports of edible oils enhance food security: risen by more than 5 times in value terms, and more than 3 times in Q terms, in 10 years…equivalent to importing 30 m ha of oilseeds land

  4. Rising cereal exports enhance food security abroad: increased by more than 10 times in value terms and 8 times in Q terms since 2000-01 (exporting 30-50 billion cu m of water through rice alone)

  5. India’s rising agri-exports and imports contribute to global food, feed and fiber security:exports hovering around $40b vis-à-vis imports of $20b in 2012-14

  6. India’s agri-trade as percent of agri-GDPrisen from 5% to almost 20% over 1990 to 2013

  7. Falling import duties on edible oils (duty on pulses is zero)

  8. Issue of Domestic support in trade negotiations: MSPs of wheat and rice

  9. Lessons for trade negotiations • Food security is paramount concern for India, given large population (1.25 billion) and mass poverty • Trade policy will have to be subservient to this overarching goal…India will take time to be confident in opening up basic staples fully to trade…but direction is clear and moving fast • Patience and perseverance! …as there will be occasional hiccups!

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