Food Act and the world

THE Manmohan Singh government got over all hurdles in passing the Food Security Act, the first such legislation in the world. Now an international battle has begun. India has to insulate its promise to feed eight hundred million Indians from trading   partners and potential global price volatilities.  India is gearing up for an informal meeting with common front nations having similar food security concerns. The developed countries may pose a problem as they are not happy with the possible impact of such laws on the global food trade.  Indonesia is the latest country which has agreed to work with India at global forums.  New Delhi’s search for partners extends from Brazil to Brunei.  All this is a prelude to the World Trade Organization Conference in Bali in December when the Act will come up for discussion.
India has to revolve round the response of developed nations to the Food Security Act. It has to hike its domestic agricultural subsidies and augment its stockpile of grains that it is offering.  The US, Canada and sections in other nations have alleged that the law paves the way for India violating the WTO norms by increasing its protectionist barriers. These critics have also compared stockpiling to hoarding that could skew global food prices.  India fears that market volatility   and price fluctuations could imperil the implementation of the Act. It has tried hard to win support for a common proposal by the G33 group of developing nations. New Delhi has also made it clear that stockpiling is not for finding a market for the country’s agricultural produce.  The criticism of the developed countries can be more of a serious threat than sniping by economists like Jagdish Bhagwati.