by BRINDA KARAT
By allowing futures trade in food and diversion of farm land for commercial purposes, the government (of India) is fuelling the price rise
International agencies are warning of high food prices on a global scale in 2013 if urgent action is not taken. But our government shows little concern. The President’s address to Parliament had only a cursory mention of inflation. “Inflation is easing gradually, but is still a problem,” he said. Still a problem? Surely the suffering of people from the relentless price rise inflicted on them by the flawed policies of the United Progressive Alliance (government) deserves more recognition and redress. Perversely, the government is intensifying the very policies which cause price rise.
Even the World Bank, whose neoliberal policy impositions are responsible to a great extent for global food inflation, has warned that “high and volatile food prices are becoming the new normal.” The FAO warns that “despite decline in international food prices in the latter quarter of 2012, they remain close to all time highs. Stocksof key cereals have tightened.” Among the reasons are the diversion of land from food grains production, speculative trade, low public investment in agriculture and depleted stocks. This critique is as valid for India as it is for the more developed countries.
Food vs. fuel
While the severe drought in the United States, Russia, the Ukraine and elsewhere is also cited as a reason for a likely fall in the production of wheat and a consequent increase in food prices, the FAO has warned that the continuing diversion of land to produce crops for the bio-fuel industry in the U.S., Europe and the growing trend of companies to buy land in developing countries like Africa for growing such crops, will lead to “increasing hunger worldwide.” By subsidising corn production for bio-fuels, the U.S. pulls out corn from food supply, raising prices. Cars and fuel it would seem are more important than people and food.
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(Thanks to Feroz Mehdi)