NEW DELHI: India will leverage the global concerns over food security to seek technological assistance from the developed world to raise farm productivity in the developing countries at the ongoing meeting of agriculture ministers of G-20 nations in Paris.
The G20 meet in Paris will focus on various hedges against price instability in food articles and will also consider the use of emergency buffer stocks and regulation of the commodity trading markets. "India will seek all forms of support from the developed world to enhance agricultural productivity," a government official told ET.
A recent report by OECD and FAO highlighted the problems of high and volatile commodity prices over the last year, and warned of steep price rise in the next decade. This will be particularly painful for the developing countries where a large proportion of the populations are spending most of their earnings on food.
A rise in productivity in the developing countries can help rein in prices. "The technology for improving agricultural productivity in developed countries is with the private sector, it is difficult to access such technologies," said Ashok Gulati, Chairman, CACP. "This meeting is a good platform for acquiring advanced technology," he said.
The developed world is sure to demand less restrictive farm sector policies in return, especially from India and China. "China and India in particular keep excessive stocks that push prices up. Hence, over issues of export control, India will come under scrutiny," added Gulati.
This will make a consensus difficult, as singed by high food inflation India is not likely to relent on export restrictions any time soon. India and China will also argue that policies in the developed world were responsible for price rise. "Excess liquidity created by loose monetary policies is being parked in commodity markets. India should raise its voice against such synchronized orchestrated policies," said Gulati.
In this context the discussion on regulation of the commodity trading markets will become crucial. Abheek Barua, HDFC Bank , Chief Economist cautions controls on commodity trading can be counter productive. "Unless regulation on commodity trading is adopted by all nations, it will result in arbitrage opportunities. What is required is a smoother trading system among partners," he said.
The G20 meet in Paris will focus on various hedges against price instability in food articles and will also consider the use of emergency buffer stocks and regulation of the commodity trading markets. "India will seek all forms of support from the developed world to enhance agricultural productivity," a government official told ET.
A recent report by OECD and FAO highlighted the problems of high and volatile commodity prices over the last year, and warned of steep price rise in the next decade. This will be particularly painful for the developing countries where a large proportion of the populations are spending most of their earnings on food.
A rise in productivity in the developing countries can help rein in prices. "The technology for improving agricultural productivity in developed countries is with the private sector, it is difficult to access such technologies," said Ashok Gulati, Chairman, CACP. "This meeting is a good platform for acquiring advanced technology," he said.
The developed world is sure to demand less restrictive farm sector policies in return, especially from India and China. "China and India in particular keep excessive stocks that push prices up. Hence, over issues of export control, India will come under scrutiny," added Gulati.
This will make a consensus difficult, as singed by high food inflation India is not likely to relent on export restrictions any time soon. India and China will also argue that policies in the developed world were responsible for price rise. "Excess liquidity created by loose monetary policies is being parked in commodity markets. India should raise its voice against such synchronized orchestrated policies," said Gulati.
In this context the discussion on regulation of the commodity trading markets will become crucial. Abheek Barua, HDFC Bank , Chief Economist cautions controls on commodity trading can be counter productive. "Unless regulation on commodity trading is adopted by all nations, it will result in arbitrage opportunities. What is required is a smoother trading system among partners," he said.
