State of Food and Agriculture 2024 | 12 Nov 2024

Source: DTE

Why in News?

The State of Food and Agriculture 2024 report by the Food and Agriculture Organization (FAO) of the United Nations has revealed staggering global agrifood hidden costs of approximately USD 12 trillion annually, primarily driven by unhealthy dietary patterns and environmental degradation. 

• This report examines the often-overlooked factors that contribute to these costs, urging a transformation of the global agrifood systems.  

What are the Key Highlights of the State of Food and Agriculture 2024? 

• Global Hidden Costs: Hidden costs of agrifood systems amount to approximately USD 12 trillion annually. 
  • 70% of these costs (USD 8.1 trillion) are linked to unhealthy dietary patterns and associated non-communicable diseases (NCDs) like heart disease, stroke, and diabetes. 
• Insights on India: India's hidden costs, totalling USD 1.3 trillion, are the third largest globally, following China (USD 1.8 trillion) and the United States (USD 1.4 trillion). 
  • These costs reflect significant health, social, and environmental challenges tied to its agrifood system. 
  • Over 73% of these costs stem from dietary risks, such as high consumption of processed foods and low intake of plant-based foods. 
  • The overconsumption of processed foods and additives costs India USD 128 billion annually, primarily due to diseases like heart disease, stroke, and diabetes.  
  • India’s insufficient consumption of plant-based foods and beneficial fatty acids adds USD 846 billion in hidden costs, further burdening healthcare systems. 
  • Low wages and low productivity among agrifood workers, exacerbated by distributional failures in the agrifood system, lead to poverty in India. 
• Hidden Costs by Agrifood System Types: The report categorises agrifood systems into six types, they are protracted crisis, traditional, expanding, diversifying, formalising, and industrial each with distinct hidden cost profiles. 
  • In most systems, low intake of whole grains, fruits, and vegetables is the primary dietary risk. However, in systems like protracted crises and traditional systems, low fruit and vegetable consumption is a major concern. 
  • High sodium intake increases from traditional to formalising systems, peaking in formalising systems and decreasing in industrial systems.  
  • The consumption of processed and red meats rises steadily in more industrialised systems. 

• Environmental and Social Costs: Significant environmental costs arise from unsustainable agricultural practices, particularly in diversifying agrifood systems, with costs such as greenhouse gas emissions and nitrogen runoff reaching USD 720 billion. 
  • Countries facing prolonged crises bear significant relative environmental costs, reaching up to 20% of the Gross Domestic Product (GDP). 
  • Traditional and protracted crisis systems suffer the highest social costs, including poverty and undernourishment, which represent a significant portion of GDP in these regions (8% to 18%). 
• Recommendations for Transformative Change: 
  • True Cost Accounting: Implementing true cost accounting to better capture hidden costs and inform decision-making. 
  • Healthier Diets: Policies to make nutritious food more affordable and accessible, reducing health-related hidden costs. 
  • Sustainability Incentives: Providing financial and regulatory incentives for adopting sustainable practices and reducing emissions. 
  • Consumer Empowerment: Clear, accessible information on the environmental, social, and health impacts of food choices to guide consumer behaviour. 
  • Importance of Collective Action: A call for cooperation among agribusinesses, governments, financial institutions, international organisations, and consumers to drive systemic change. 
  • Focus on SDGs: The transformation of global agrifood systems is essential for achieving the Sustainable Development Goals (SDGs) and ensuring food security, nutrition, and sustainable development. 

How is India Working Towards Sustainable Food Systems? 

• According to FAO, a sustainable food system (SFS) balances economic profitability, social equity, and environmental protection to ensure food security for future generations. 
• The National Food Security Act (NFSA) of 2013, provides food entitlements to over 800 million citizens, demonstrating India’s commitment to ensuring food security. 
• India’s Initiatives for SFS: 
  • National Mission for Sustainable Agriculture (NMSA) 
  • Fortified Rice Distribution (2024-2028). 
  • Rashtriya Krishi Vikas Yojana (RKVY) 
  • Eat Right Initiative 
  • Digital Agriculture Mission (DAM) 

What are India’s Challenges in SFS? 

• Climate Change: In recent years, India has been experiencing changing weather patterns, erratic rainfall, and extreme events (droughts, floods, and heatwaves) affect crop yields and food security. 
• Environmental Degradation: Excessive use of chemical fertilisers and pesticides can lead to soil degradation, water pollution, and harm to biodiversity. 
  • Key concerns related to natural resources include declining yields, soil fertility, soil organic carbon (SOC) levels, and water scarcity. 
• Inconsistent Ingredient Limits: There is an inconsistency in the limits for ingredients like sugar and salt in processed foods between Indian standards and those set by the World Health Organization (WHO).  
  • This discrepancy complicates efforts to regulate and ensure the nutritional quality of processed foods, potentially undermining public health initiatives aimed at reducing diet-related diseases. 
• Sanitary and Phytosanitary Standards: India’s agri-exports are sometimes rejected in key markets due to quality issues, highlighting the need for improved standards. 
• Low Productivity and Income: A large proportion of Indian farmers own small landholdings, which limits their productivity and income. 
  • Many farmers rely on outdated methods, leading to low yields and inefficient resource use. 
• Limited Trade Collaboration: India's trade agreements lack substantial discussions on SFS, reducing opportunities for growth through mutual agreements on standards. 
• Absence of Export Strategy and Data: There is a lack of product-specific export strategies and comprehensive data to support SFS-aligned trade planning. 

What is Needed for a Sustainable and Inclusive SFS in India? 

• Sustainable Practices: Adoption of sustainable water usage, soil health restoration, and environmentally friendly farming methods. 
• Support for Smallholder Farmers: Enhancing access to financial services, technology, and markets for marginalised farmers. 
• Implement Farm-to-Fork Traceability: Product traceability is critical for ensuring quality, safety, and sustainability across the food supply chain. 
• Collaboration with International Agencies: The FAO, International Fund for Agricultural Development, World Food Programme (WFP), and the Indian government promote agricultural reforms and support smallholder farmers through education, technology, and financial resources. 
• Enhance Quality Testing and Certification: Strengthening quality control through testing and certification processes will help Indian agri-products meet international standards. 
• Strengthening Social Safety Nets: To support non-agricultural families, food distribution systems need to be efficient, ensuring affordability and accessibility. 

Conclusion 

India faces significant hidden costs in its agrifood system, driven by unhealthy diets and environmental degradation. While progress has been made, challenges like climate change, export restrictions, and low productivity hinder progress. A holistic approach, focusing on sustainable practices, support for smallholder farmers, and international collaboration, is crucial for building a resilient and inclusive agrifood system aligned with global sustainability goals.