India-USA: The political debate about food prices

India has a rapidly expanding middle class yet the world's highest rate of malnutrition in children under three. So, rising global food prices have hit some of the country's most vulnerable people hard. The apparent attempt by George Bush to blame India's growing middle class for the price hikes does not help.

The BBC reported that food prices began to rise in 2005 but by 2007 there was an abnormal increase. From March 2007 to March 2008, the average the price of corn soared by 30%, rice by 74%; soya beans by 87% and wheat by 130%!  As a result, people in India including the lower middle class, are finding it very difficult to sustain a living and provide sufficient food for their families.  Usually, India is one of the world's major rice producing countries but rising food prices have led to local producers putting "severe" limits on rice exports. Experts in the World Bank and UN argue increased production of bio-fuels is largely to blame for the 40% increase in maize prices. Hence, pressure from the Indian Government on the governments in developed countries to change their policies.

These policies highlight major differences between the North and South. Reports show that the North consumes comparatively little food grains, but their oil consumption is very high. The reverse is experienced in the South. This is why India and China are trying to cut back biofuel production and increase the food production in order to deal with the food crisis. Researchers say increased production will probably lead to a considerable fall in food grain prices in the long run. NGO's in India – particularly in states like Karnataka, Kerala, Tamil Nadu and Chhattisgarh - have opted to cultivate Jatropha, which is able to grow in wastelands.  Central Government believes this can replace 20% of the country's diesel consumption. Chhattisgarh also plans to earn Rs. 40 billion every year from 2010 just from selling Jatropha seeds.

These constructive measures differ from the attitudes of the American administration. Earlier this year, George Bush angered many when he appeared to blame India's growing middle class for rising global food prices. He said, that "when you start getting wealth, you start demanding better nutrition and better food, and so demand is high, and that causes the price to go up."

This scapegoating of the Indian middle classes suggests Bush is trying to hide behind the facts of America's own excessive and wasteful consumption. While he is not expected to be sympathetic to India's problems, he should at least offer a sensible reason for the rise in global food prices. His comments have prompted a growing number of Indian politicians, economists and academics to ask, ""Why do Americans think they deserve to eat more than Indians?". Pradeep Mehta, the secretary general of the Centre for International Trade, Economics and Environment says the food problem has been created by Americans, who eat 50% more calories than the average person in India. He added that if Americans were to slim down to even the middle-class weight in India, "many hungry people in sub-Saharan Africa would find food on their plates."

Bhaskar Dutta, writing in the Calcutta Telegraph, points to recent studies which show that the "single most important factor contributing to the surge in global food grain prices has been the diversion of food grains into the production of bio fuels". There is a difference of opinion as to just how much bio fuels are to blame for price increases. The World Bank says they are 75% of the increase in food prices while the International Food Policy Research Institute says they are responsible for 30% of the increase in food prices, and over 40% of the increase in prices of maize. The Bush administration which has adopted a policy of substituting 75% of America's oil imports with bio fuels claims these are to blame for 3% of price increases. 

So, it would seem that not only does the Bush administration have a vested interest in diverted attention away from the problem of obesity in America while millions are starving elsewhere. He also has a vested interest in drawing attention away from his own bio-fuel policies which are diverting grains away from food.