Global Food Shortages Demand An International-Level Solution : Daily Current Affairs

Relevance: GS 3: Food Security, Conservation-related issues.

Key Phrases: Food Security, Food Crisis, Food Shortage, Russia-Ukraine War, Hoarding, Buffer Stocks, National Food Security Act 2013, Global Buffers, Export Ban.

Why in News?

Food shortages are beginning to cast a shadow over the world. One long-term factor is the warming of our planet, which has slowly destroyed agricultural land.
But the proximate cause of greatest concern is the war in Ukraine and Russian President Vladimir Putin’s Black Sea blockade, which is preventing Ukrainian grain and fertilizers from leaving the port of Odessa.
This is an extremely urgent problem, and policymakers are rightly scrambling to solve it. But there is also a generic problem, beyond the immediate emergency, that needs to be understood if we are to overcome the current food crisis.
It arises from our failure to keep pace with the march of economic globalization by implementing global policy and conventions.

Causes of food crisis:

Since early 2020, the world has been in relentless crisis mode as a result of:
- the covid pandemic,
- supply-chain disruptions,
- climate variability and extremes, and
- the Russian war of aggression against Ukraine.

Do you know?

Until 2021, Ukraine exported roughly 17 million tonnes of wheat annually, or 8.5% of the world’s total.
Together with Russia, the two countries account for a combined 12% of the food calories traded in the world.
Almost half (40%) of Ukraine’s wheat and corn exports go to the Middle East and Africa, which are already grappling with hunger issues.

Hoarding of buffer stocks:

After all, most countries have some buffer stocks and should be able to absorb this shock then why this should lead to such a big increase in wheat prices, and to the dangers of global food shortages and famine that are seen today.
The answer lies in the behavioural response of national and local governments and even of individuals.
When global policy coordination is poor, the natural reaction to news of some shortage is to hoard supplies. It is known from studies such as Amartya Sen’s classic work on the 1943 Bengal Famine, and it can be seen happening now.
Once the fear of shortages sets in, people stock up on more food than they immediately need to guard against a full-blown crisis.
Yet, these small actions by millions of people, along with local and national government policies, can end up causing just that.
It has been seen with vaccines: Countries acquire far more doses than they need to guard against the possibility of a future shortage. Such hoarding explains some of the glaring global inequities in access to covid vaccines.

Limiting the Exports:

While Ukraine has halted its wheat exports because it had no option, other countries have chosen to stop or curtail shipments.
India along with 26 countries has limited their wheat exports to ensure that they have sufficient supplies for their citizens.
All this is causing global wheat prices to rise precipitously. India’s announcement alone triggered a 6% price increase.

Global Buffers or an International Agreement:

There is much the world can do through collective action to overcome shortages that the market cannot fix.
A system of global buffers or an international agreement that countries with a surplus must help others during times of scarcity would go a long way toward solving much of the problem.
Just like the introduction of deposit insurance put an end to bank runs, most people would stop hoarding once they had confidence that this system worked, and that in itself would help avert a crisis.

Indian case study

In India, a country with a history of food shortages and hoarding, longstanding efforts to establish a national public food distribution system resulted in a major improvement in 1992 and culminated in the 2013 National Food Security Act.
With a sophisticated system of minimal food guarantees in place for three decades, the psychology of hoarding at the household level has diminished, which in turn has diminished the need to hoard.
Global agreements and buffers to mitigate food crises may seem impossible. But a similar arrangement at the national level for a large country like India also was thought to be out of reach until it happened.

National Food Security Act

The National Food Security Act, 2013 aims to provide subsidized food grains to approximately two-thirds of the country’s population.
Up to 75% of rural and 50% of the urban population will be covered under Targeted Public Distribution System, with a uniform entitlement of 5kg/person/month ration.
Antyodaya Anna Yojana (AAY) households constitute the poorest of the poor and are presently entitled to 35 kg/household/month.

What are the other solutions?

Take actions to enhance next season’s production by removing input trade barriers, focusing on more efficient use of fertilizers, and repurposing public policies and expenditures to better support farmers and output.
Build international consensus (G7, G20, others) and commitment to avoid export restrictions that increase global food prices and import restrictions that discourage production in developing countries.
Scale-up targeted, nutrition-sensitive social protection programs and replenish early-response financing mechanisms.
Strengthen food systems to make them more resilient to rising risks (conflict, climate, pests, diseases), trade disruptions, and economic shocks – balance immediate/short-term needs with long-term investments.
Integrating humanitarian, development, and peacebuilding policies in conflict-affected areas.
Scaling up climate resilience across food systems.
Strengthening the resilience of the most vulnerable to economic adversity.
Intervening along the food supply chains to lower the cost of nutritious foods.
Tackling poverty and structural inequalities, ensuring interventions are pro-poor and inclusive.
Strengthening food environments and changing consumer behaviour to promote dietary patterns with positive impacts on human health and the environment.

Conclusion:

Despite recent hiccups, the march of globalization will not end, so the world must try to establish minimal global conventions and agreements to prevent it from trampling the most vulnerable.

Source: Live-Mint

Mains Question:

Q. What are the causes of the present global food shortage crisis and how can a global buffer or an international agreement help?