Context:
India’s total hidden costs of agrifood systems were around $1.3 trillion annually, largely driven by unhealthy dietary patterns and dietary risks associated with non-communicable diseases, found the State of Food and Agriculture 2024 report by Food and Agriculture Organization (FAO) of the United Nations.
Relevance:
GS II: Agriculture
Dimensions of the Article:
Key Highlights of the State of Food and Agriculture 2024
- Annual Hidden Costs in Agrifood Systems: The global hidden costs in agrifood systems are estimated at around USD 12 trillion each year.
Main Contributors to Hidden Costs:
- Unhealthy dietary patterns are responsible for 70% of these costs, totaling USD 8.1 trillion, primarily due to non-communicable diseases like heart disease, stroke, and diabetes.
India’s Position:
- India ranks third globally with hidden costs amounting to USD 1.3 trillion, following China (USD 1.8 trillion) and the United States (USD 1.4 trillion).
- These costs are indicative of significant health, social, and environmental challenges within India’s agrifood system.
- Dietary risks, particularly the high consumption of processed foods and low intake of plant-based foods, account for over 73% of these hidden costs in India.
- The excessive intake of processed foods and additives incurs an annual cost of USD 128 billion, mainly due to associated diseases.
- Insufficient consumption of plant-based foods and beneficial fatty acids contribute an additional USD 846 billion to India’s hidden costs, placing a strain on healthcare systems.
Labor Issues:
- Low wages and productivity among agrifood workers, exacerbated by distributional failures, contribute to poverty within the sector.
Classification of Agrifood Systems:
- The report identifies six agrifood system types: protracted crisis, traditional, expanding, diversifying, formalising, and industrial, each with unique hidden cost profiles.
Dietary Risks Across Different Systems:
- In most systems, the primary dietary risk is the low intake of whole grains, fruits, and vegetables.
- In protracted crisis and traditional systems, low fruit and vegetable consumption is a major concern.
- High sodium intake is more prevalent from traditional to formalising systems, peaking in formalising systems and reducing in industrial systems.
- Consumption of processed and red meats increases in more industrialised systems.
Environmental and Social Costs:
- Significant environmental costs, including greenhouse gas emissions and nitrogen runoff, totaling USD 720 billion, are noted especially in diversifying agrifood systems.
- Countries in prolonged crises face considerable relative environmental costs, amounting to up to 20% of their GDP.
- Traditional and protracted crisis systems experience the highest social costs, such as poverty and undernourishment, accounting for 8% to 18% of GDP in these areas.
Some key recommendations from the report included:
- Providing financial and regulatory incentives to advance the adoption of sustainable practices along the food supply chain and to limit power imbalances between agrifood systems stakeholders
- Promoting healthier diets by enacting policies that make nutritious food more affordable and accessible and reduce health related hidden costs
- Incentivising reductions in greenhouse gas and nitrogen emissions, harmful land-use change and biodiversity loss through labelling and certification, voluntary standards and industry-wide due diligence initiatives
- Empowering consumers with clear, accessible information about the environmental, social and health impacts of food choices, while ensuring even vulnerable households can benefit from change
India’s Efforts Towards Sustainable Food Systems (SFS)
- FAO’s Definition of SFS: According to the Food and Agriculture Organization (FAO), a sustainable food system effectively balances economic profitability, social equity, and environmental protection, which collectively support long-term food security.
- Legislative Support:
- The National Food Security Act (NFSA) of 2013 showcases India’s dedication by providing food entitlements to over 800 million citizens.
Key Initiatives for SFS:
- National Mission for Sustainable Agriculture (NMSA): Focuses on enhancing agricultural sustainability through various innovative practices.
- Fortified Rice Distribution (2024-2028): Aims to improve nutritional standards by fortifying rice, a staple in the Indian diet.
- Rashtriya Krishi Vikas Yojana (RKVY): Encourages states to draft and execute their own agriculture development plans.
- Eat Right Initiative: Promotes healthy eating practices among the Indian population.
- Digital Agriculture Mission (DAM): Integrates digital technology into agriculture to boost efficiency and transparency.
Challenges India Faces in Implementing SFS
Environmental and Climate Challenges:
- Changing weather patterns, erratic rainfall, and extreme climate events such as droughts, floods, and heatwaves negatively impact crop yields and threaten food security.
Agricultural Practices:
- The excessive use of chemical fertilizers and pesticides contributes to soil degradation, water pollution, and biodiversity loss.
- Declining yields, reduced soil fertility, lower soil organic carbon (SOC) levels, and water scarcity are pressing concerns.
Regulatory and Health Issues:
- Discrepancies in the Indian standards for sugar and salt in processed foods compared to those set by the World Health Organization (WHO) complicate regulatory efforts and impact the nutritional quality of processed foods.
Trade and Economic Challenges:
- Occasional rejections of India’s agricultural exports in key markets due to quality issues underline the necessity for enhanced standards.
- Small landholdings among farmers restrict productivity and income, while reliance on outdated farming methods leads to inefficient resource use and low yields.
- India’s trade agreements rarely focus on SFS, limiting opportunities to leverage mutual standards for growth.
- A lack of product-specific export strategies and comprehensive data hampers SFS-aligned trade planning.
-Source: Down To Earth
