13-November-2024-Special-Article

STATE OF FOOD AND AGRICULTURE 2024 REPORT

The Food and Agriculture Organization (FAO) of the United Nations released its State of Food and Agriculture 2024 report, revealing hidden global costs in agrifood systems totalling approximately USD 12 trillion per year.

These costs largely stem from unhealthy dietary habits and environmental harm, prompting a call for reform in the global agrifood system.

The report emphasizes the need for sustainable and health-focused changes to address these hidden costs and support the Sustainable Development Goals (SDGs).

Key Highlights of the 2024 Report

Global Hidden Costs

• The global agrifood system’s hidden costs amount to around USD 12 trillion annually.
• Unhealthy diets and related non-communicable diseases (NCDs) like heart disease, stroke, and diabetes contribute roughly USD 8.1 trillion, or 70% of these costs.

India-Specific Insights

• India faces hidden agrifood costs of USD 1.3 trillion, ranking third globally after China (USD 1.8 trillion) and the U.S. (USD 1.4 trillion).
• These costs are driven by health, environmental, and social issues tied to India’s food systems.
• Around 73% of these hidden costs in India come from dietary risks, including high processed food intake and low consumption of plant-based foods.
• Overconsumption of processed foods costs India approximately USD 128 billion, mainly due to heart disease, diabetes, and other health issues.
• Insufficient consumption of plant-based foods adds USD 846 billion in hidden costs, pressuring India’s healthcare systems.
• Low wages and productivity among agrifood workers increase poverty rates in India, partly due to structural inefficiencies in the agrifood system.

Agrifood System Categories and Associated Costs

• The report classifies agrifood systems into six categories: protracted crisis, traditional, expanding, diversifying, formalising, and industrial.
• Health risks vary by system type. In systems facing crises and traditional ones, low fruit and vegetable intake is a significant concern.
• High sodium intake peaks in formalising systems and decreases in fully industrialized systems.
• Consumption of processed and red meats is higher in more industrialized systems.

Environmental and Social Costs

• Environmental costs are significant, especially in diversifying systems, with issues such as greenhouse gas emissions and nitrogen runoff costing USD 720 billion globally.
• Protracted crisis systems incur high relative environmental costs, sometimes up to 20% of their GDP.
• Regions with traditional or crisis-prone agrifood systems face high social costs, such as poverty and malnutrition, accounting for 8% to 18% of their GDP.

Recommendations for Agrifood System Transformation

• Implementing True Cost Accounting: Governments and organizations should consider the hidden costs of agrifood systems for informed decision-making.
• Promoting Healthier Diets: Policies should aim to make nutritious food more accessible and affordable, thereby reducing health-related hidden costs.
• Sustainability Incentives: Financial incentives and regulatory support are essential for encouraging sustainable farming practices and reducing emissions.
• Consumer Empowerment: Providing consumers with clear, accessible information on the environmental, social, and health impacts of their food choices can promote more sustainable behaviors.
• Emphasizing Collective Action: Collective efforts from agribusinesses, governments, financial institutions, international organizations, and consumers are crucial for meaningful reform.
• Focus on Sustainable Development Goals (SDGs): Transforming agrifood systems is key to meeting SDGs, ensuring food security, improved nutrition, and sustainable development.

About Agrifood Systems

According to the FAO, agrifood systems encompass the entire journey of food, from production to consumption, including processing, distribution, and waste management. Economic, social, and environmental factors influence these systems.

With rapid urbanization and changing diets, agrifood systems face growing challenges in sustaining food supply and providing nutritious options.

India’s Efforts Toward Sustainable Food Systems

A sustainable food system (SFS) balances economic, social, and environmental priorities to ensure food security for future generations.

India’s National Food Security Act (NFSA) of 2013 demonstrates the country’s commitment by providing food entitlements to over 800 million people. Key initiatives include:

• National Mission for Sustainable Agriculture (NMSA): Promotes sustainable agricultural practices across India.
• Fortified Rice Distribution (2024-2028): Aims to address nutrient deficiencies through fortified food distribution.
• Rashtriya Krishi Vikas Yojana (RKVY): Supports agricultural growth and productivity.
• Eat Right Initiative: Encourages healthier food choices to improve public health.
• Digital Agriculture Mission (DAM): Uses technology to modernize agricultural practices and improve resource efficiency.

Challenges India Faces in Building a Sustainable Food System

• Climate Change: India is increasingly experiencing erratic weather patterns, affecting crop yields and food security.
• Environmental Degradation: Overuse of chemical fertilizers and pesticides threatens soil health, water quality, and biodiversity, affecting yields and resource sustainability.
• Inconsistent Standards in Processed Foods: Discrepancies between Indian and WHO standards for ingredients like sugar and salt complicate regulatory efforts for diet-related disease prevention.
• Sanitary and Phytosanitary Standards: India’s agricultural exports occasionally encounter rejection over quality concerns, underscoring the necessity for enhanced standards.
• Low Productivity and Income Levels: Many Indian farmers operate on small landholdings with outdated methods, limiting yields and income.
• Limited Trade Collaboration: India’s trade agreements lack a robust focus on SFS, hindering opportunities for growth through mutual standards.
• Lack of Export Strategy and Data: The lack of product-specific export strategies and data for trade planning aligned with sustainable food systems (SFS) limits sustainable growth.

Steps Needed for a Sustainable and Inclusive Food System in India

• Sustainable Practices: Promote sustainable water use, soil restoration, and eco-friendly farming techniques.
• Support for Smallholder Farmers: Enhance access to financial services, technology, and markets for marginalized farmers.
• Farm-to-Fork Traceability: Product traceability is vital for quality, safety, and sustainability across the supply chain.
• Collaboration with International Agencies: Working with agencies like FAO and WFP can help implement agricultural reforms and support small farmers.
• Improved Quality Testing and Certification: Strengthen quality control to ensure Indian agri-products meet global standards.
• Enhanced Social Safety Nets: Efficient food distribution systems can support affordability and access for non-agricultural families.

Conclusion

India’s agrifood system incurs significant hidden costs, primarily from dietary risks and environmental issues. Although progress is evident, challenges like climate change, export standards, and low productivity remain. A holistic, inclusive approach—focusing on sustainability, farmer support, and international cooperation—is critical to building a resilient agrifood system aligned with global goals.

Mains Question:

1. Discuss the major hidden costs within global agrifood systems as highlighted by the FAO’s State of Food and Agriculture 2024 report, and suggest strategies for India to build a sustainable and inclusive food system. (150 WORDS)