The
government of the USA has planned for India to become an important
consumer of its agricultural exports and crop science. India has
also been planned as a host country for an agricultural research
agenda directed by American crop-seed biotech corporations. This
is to be achieved through a variety of programmes in India, some
of which began their preparation two years ago. This agenda, labelled
as US-India cooperation by India's current UPA-2 government and
by the USA's current Barack Obama administration, has the support
of the American farm sector, but not that of India's farmers and
cultivators. The clear and blunt objective is to increase US agricultural
exports and to widen as quickly as possible the trade surplus
of the US agricultural sector.
This agenda has become clear following the three business and
industry meetings held during the visit of US President Barack
Obama-'US-India Business and Entrepreneurship Summit' in Mumbai
on 6 November, 'India-US: An Agenda for Co-Creation' with the
Confederation of Indian Industry (CII) in New Delhi on 8 November,
and 'US-India Conclave: Partnership for Innovation, Imperative
for Growth and Employment in both Economies' with the Federation
of Indian Chambers of Commerce and Industry (FICCI) in New Delhi
on 9 November.
The US agri-business view has been projected in India by the US-India
Business Council, a business advocacy group representing American
companies investing in India together with Indian companies, with
a shared aim to deepen trade and strengthen commercial ties. In
a document titled 'Partners in Prosperity -Business Leading the
Way' (November 2010), the business council stated: "India
requires an 'Ever-Green Revolution'-a new program which would
engage the country's rural sector, providing water utilization
and crop management 'best practices' to promote greater food security-this
time based on technology to increase efficiency and productivity.
The effort to vitalize India's agriculture sector should be driven
by business, and the first step is improving India's farm-to-market
global supply chain."
This business-driven trade in agricultural goods and services
was given formal shape two months ago during the inaugural meeting
of what is called the India-US Agriculture Dialogue, on 13 and14
September 2010 in New Delhi. India's Foreign Secretary Nirupama
Rao and USA's Under Secretary (Energy, Economic and Agricultural
Affairs) in the US State Department, Robert Hormats, co-chaired
the 'Dialogue'. Under this agreement, India and the USA have set
up three working groups for: 'strategic cooperation in agriculture
and food security', 'food processing, agriculture extension, farm-to-market
linkages', and 'weather and crop forecasting'. The 'Agriculture
Dialogue' is designed to be the implementing process for the India-US
Memorandum of Understanding for Cooperation in Agriculture and
Food Security, signed almost a year ago by Obama and Singh. On
24 November 2009, they had agreed on a Memorandum of Understanding
on Agricultural Cooperation and Food Security that will, according
to the US State department, ''set a pathway to robust cooperation
between the governments in crop forecasting, management and market
information; regional and global food security; science, technology,
and education; nutrition; and expanding private sector investment
in agriculture''.
'Agriculture Dialogue' is the new name given to a US-India plan
for trade and investment in agriculture, which saw its genesis
on 18 July 2005 when Singh and then US President George W Bush
announced the 'US–India Knowledge Initiative on Agricultural Education,
Teaching, Research, Service, and Commercial Linkages (AKI)'. At
the time, apart from government officials from both sides representing
agriculture and crop bureaucracies, Indian and American universities
and the private sector were on the AKI board. The Indian agri
universities were the Govind Ballabh Pant University of Agriculture
and Technology (Pantnagar, Uttaranchal), the Tamil Nadu Agricultural
University (Coimbatore, Tamil Nadu) and the Indian Veterinary
Research Institute (Bareilly, Uttar Pradesh). India's private
sector was represented by Venkateshwara Hatcheries Ltd, Masani
Farms (its owner was a National Horticultural Board director),
ITC Ltd's Agribusiness chief executive and Wal-Mart India. The
American private sector was represented by Archer Daniels Midland
Company and Monsanto.
The US-India AKI has been criticised from the outset as being
the means with which American agribusiness will enter India's
farm and food logistics sector. It is the AKI and its associated
trade and investment programmes (apart from the research collaborations
between US agri industry and Indian state agriculture universities)
which have helped the conversion of India's national agriculture
research system from being farmer- and cultivator-oriented to
being business- and trade-focused. The key agent of such a change
is the Indian Council of Agricultural Research (ICAR) and its
network of 49 institutes, six national bureau, 25 project directorates,
17 national research centres and 78 all-India coordinated research
projects. Moreover, ICAR controls research, education and extension
education in 44 state agricultural universities, five deemed universities,
one central agricultural university (for the North-East) and four
central universities. For the American agri industry-crop science
combine, the ICAR network represents both scientific labour and
ready access to a field testing system that is a tradition well
over a century old, for the Imperial Council of Agricultural Research
was established in Pusa (Bihar) in 1905.
How will American corporate farms, seed, biotech and agri equipment
corporations make use of this access? The US-India Business Council
drafted, in advance of the Obama visit, three 'advocacy priorities':
(1) Opening up of multi-brand retail sector to 'organised players',
by which it means American retail chains. ''As study after study
has shown, doing so would bring efficiency, infrastructure, technology,
and know-how to Indian farmers, food processors, food service
providers, and other suppliers,'' claims USIBC. (2) Backing up
the Agriculture Dialogue by the lowering of tariff and non-tariff
barriers which are ''affecting trade in fresh fruits and vegetables,
poultry, pistachios, dairy products, and horticultural products
- we also seek reduced customs duties on items such as processing
equipment, restaurant equipment, and related goods'', says the
USIBC. (3) Encouraging US companies to display to India their
''success stories of business sector intervention in agriculture
and food processing''. Doing so can ''raise awareness in a positive
way about how 'best practices' and technologies can deliver greater
efficiencies'' so that India can achieve the 'Evergreen Revolution'.
During Obama's visit, in both Mumbai and New Delhi, the business
and financial media were already being treated to 'awareness raising'
on this subject: ''Monsanto's revolutionary cotton seeds have
helped double India's cotton output in just six years'', ''PepsiCo
has helped Punjab diversify its agriculture by introducing major
citrus orchards'', ''Cargill's Nourishing India program provides
nutrient-fortified edible oils to 25 million Indians per month'',
''McDonalds and Heinz have developed new efficiencies, transforming
the lettuce and tomato industries in India'' and ''Walmart's wholesale
cash and carry stores connect farmers directly to small retailers,
eliminating costly intermediaries''. This barrage of propaganda
has been carefully orchestrated on both sides, the Indian and
the American.
By mid-2010, the position of the Ministry of Agriculture, Government
of India, became clear. In an address during the 28-29 July 2010
ICAR-Industry Meet, Union Agriculture Minister Sharad Pawar said
that his ministry recognises the role of the private sector in
critical areas of agricultural research and human resource development.
The conventional approach of public sector agricultural R&D
has been to take responsibility for priority setting, resource
mobilisation, research, development and dissemination. He then
explained that agricultural extension, which has been neglected
for several years now, is ''no longer appropriate''. The alternative,
Pawar advised, is public-private partnerships through which public
sector institutes (such as those in the ICAR network) can ''leverage
valuable private resources, expertise, or marketing networks that
they otherwise lack''. This is the undisguised merchant reasoning
behind the creation of 'Business Planning and Development units'
in five ICAR institutes (Indian Agricultural Research Institute,
Indian Veterinary Research Institute, Central Institute for Research
on Cotton Technology, National Institute of Research on Jute and
Allied Fibre Technology, Central Institute of Fisheries Technology).
These units will tackle intellectual property management, commercialisation
of research, find investors and begin businesses. India's National
Agricultural Research System, therefore, has decided to now become
a broker of its own output (publicly funded) and a speculator
seeking profits from the country's agricultural and food price
crises.
In the same month (July), the Department of Industrial Policy
and Promotion (DIPP) of the Ministry of Commerce released a discussion
paper entitled 'Foreign Direct Investment (FDI) in multi-brand
retail trading'. This paper, said the DIPP, was circulated to
"generate informed discussion on the subject" which
will ''enable the Government to take an appropriate policy decision
at the appropriate time''. However, that consultative pose was
neutralised by the central government taking a position against
the arguments protesting FDI in retail. The 'limitations' of current
conditions in the Indian retail sector were described as:
-
That
there has been a lack of investment in the logistics of the
retail chain, leading to ''an inefficient market mechanism''.
The point was made that India is the second largest producer
of fruit and vegetables in the world (about 180 million tonnes)
but has ''very limited integrated cold-chain infrastructure''
with only 5,386 stand-alone cold storages which together have
a capacity of 23.6 mt. It points out that post-harvest losses
of farm produce-especially fruits, vegetables and other perishables-have
been estimated to be over Rs. 100,000 crore per annum, 57% of
which is due to ''avoidable wastage and the rest due to avoidable
costs of storage and commissions''.
-
That
''intermediaries dominate the value chain'', often flouting
'mandi' norms and their pricing lacks transparency. According
to the union government, wholesale regulated markets governed
by state APMC (Agricultural Produce Marketing Committee) Acts
''have developed a monopolistic and non-transparent character''.
Indian farmers are said to realise only 1/3 of the total price
paid by the final consumer, as against 2/3 by farmers in nations
with a higher share of organised retail.
-
That ''there is a big question mark on the efficacy of the public
procurement and PDS set-up and the bill on food subsidies is
rising''. The DIPP has said that despite heavy subsidies, ''overall
food-based inflation has been a matter of great concern''. It
blames the ''absence of a 'farm-to-fork' retail supply system''
as being responsible for forcing consumers to ''pay a premium
for shortages and a charge for wastage''.
Now,
with the Obama economic mission to India, a picture has emerged
out of the pattern. The ICAR-Industry Meet had focused on four theme
areas: seed and planting material; diagnostics, vaccines and biotechnological
products; farm implements and machinery; and post-harvest engineering
and value addition. All these are areas in which US agri-business
corporations want to occupy as suppliers, research units and to
aid organised retail. The DIPP-Ministry of Commerce paper had placed
emphasis on the food produce supply chain and our ''inefficient''
markets which lead to wastage. Taking the cue, the US-India Business
Council as part of its preparatory material for the Obama visit
had said: ''Even though India produces more milk than any other
country in the world and is second in the world in its production
of fruits and vegetables, a stunning gap remains-40% of India's
food harvest spoils before reaching the market.'' Take note also
of the focus of the three working groups set up under the India-US
Agriculture Dialogue and the preparation of the ICAR network in
those directions.
Finally, there is the idea of the 'Evergreen Revolution' being promoted
by both sides, India's Ministry of Agriculture and the ICAR-led
research and agri education system, and the US Department of Agriculture
in concert with the US State Department and American agri business.
Also called ''second Green Revolution'' by India's agriculture sector
planners, such labelling has ignored entirely the social and genetic
violence to India's agrarian settlements which has only increased
post-Liberalisation. At a meeting in Bhubaneswar, Orissa, held to
discuss the central government's ''Green Revolution in Eastern India''
programme, a concluding declaration was made by farmers, activists
and scientists from more than ten Indian states. ''Food and livelihood
security of the poor is subverted by the decision imposed by the
Union Government on the peoples of the six Eastern Indian states
to push for the new phase of Green Revolution with a thrust on hybrid
seeds technology,'' said the declaration. ''We question the rationale
of the government in bringing in this Green Revolution and strongly
believe that techno-centric production models adopted so far do
not address real food, nutrition and livelihood security.''
It is not food, nutrition and livelihood security which are the
concerns of the India-US Agriculture Dialogue. This 'dialogue' is
controlled and directed by the US government's new National Export
Initiative. ''We are pursuing a new trade strategy which looks at
nations based on the nature of their marketplace,'' stated Tom Vilsack,
US Secretary of Agriculture, on 2 September 2010 (he was part of
the Obama mission to India). ''These efforts mean that agriculture
is one of the only major sectors of the economy with a trade surplus,
which we expect to be worth US$30.5 billion this year. Overall,
our agricultural exports should be worth US$107.5 billion in fiscal
year 2010-up from US$96 billion in 2009-and we expect them to rise
again in 2011. More importantly, this progress should create good
jobs for Americans: USDA studies show that every billion dollars
in agricultural exports supports over 8,000 jobs and generates an
additional US$1.4 billion in economic activity.''
According to a September 2010 ''Report to The President on the National
Export Initiative' by the US Secretary of Commerce, Gary Locke (he
was also part of the Obama mission to India), the NEI has five components.
Three of these apply directly to the new American agriculture hard
sell to India: (1) ''We will improve advocacy and trade promotion
efforts on behalf of US exporters, so trade missions can introduce
the world to American products and advocacy centres can help US
exporters pursue opportunities''; (2) ''We will reinforce our efforts
to remove barriers to trade, so as many markets as possible are
open to our products''; (3) ''We will enforce our trade rules, to
make sure our trade partners live up to their obligations''.
A month after Vilsack's statement on the importance of agriculture
sector exports to the US economy, Dr. Montek Singh Ahluwalia, Deputy
Chairman of the Planning Commission of India, asked the vice-chancellors
of agricultural universities to adopt ''innovative approaches''
to strengthen agricultural research and education in India. Ahluwalia
said India's agricultural universities ''can play an important role
in this direction by providing research based projects with the
help of industry'' and suggested ''a new mechanism to fund research
projects instead of funding universities''. Ahluwalia is reported
to have urged the scientists working in agricultural research institutes
to ''re-orient themselves in next Twelfth Five Year Plan amid the
challenges of food security and climate change'' and-typically for
Indian planning today-referred to the gap in agricultural growth
rate and land productivity of China and India, neglecting entirely
the chronic depletion of soils and widespread degradation of agro-ecological
systems in China which have suffered from high chemical input industrial
farming.
''America helped bring about a Green Revolution,'' said President
Obama to the media in New Delhi after a meeting at Hyderabad House.
''The aim is to turn that into an Evergreen Revolution.'' A weather
forecasting tie-up is being described as the ''showpiece of the
collaboration'' which is expected to ''predict India's increasingly
erratic monsoon''. This tie-up was finalised in July 2010, when
Planning Commission member Dr. K Kasturirangan (who headed Indian
Space Research Organisation) and secretary in the Department of
Earth Sciences, Shailesh Nayak, visited the US National Oceanographic
and Atmospheric Administration. The Indian government's justification
for the weather and crop forecasting tie-up is that it combines
both oceanographic and atmospheric sciences. From the information
now available, crop scientists in the ICAR network and earth scientists
at ISRO will be able to use the forecasting model. The US administration
says this will help predict sudden breaks in the monsoon cycle.
But it will also enable district-level predictions of crop sowing,
harvesting and movement to a degree not seen before in the sub-continent.
This information will first be used by the US Department of Agriculture
and the US Department of Commerce to determine agri business and
trade responses. By then, under the 'Agriculture Dialogue' plan,
there will be enough collaboration at farm level, in the grain markets
and in the retail chain to employ such granular information to the
benefit of American food exporters and traders. The risk to India's
food security-quite contrary to the pious statements made by both
sides during the Obama visit-has never been greater.
Rahul Goswami (makanaka@pobox.com)
is an agriculture systems researcher based in Goa. He worked for
two years with the National Agricultural Innovation Project, Government
of India. He is a member of the Indian Society of Agricultural Economics,
and Associate, Centre for Communication and Development Studies,
Pune.
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