Liberalization Ends Food Security?

India and other developing countries are having a large population depending on agriculture. Our country is the largest among the developing countries depending on agriculture. 

The Uruguay Round Agreement on Agriculture (AOA) was focused on implementing    restrictions on production; export subsidies and barriers of trade (tariff as well as non-tariff based). AOA demanded liberal approach on agricultural trade sector, which was proposed   as the ultimate way to save the sector. The agreement also pleaded for actions to protect   environment. 

On the other hand developing countries   required considering the non-trade interests such as   food security. Most of the farmers of these countries are engaged in agriculture   for survival just around the poverty line. That is why a market-oriented approach is found to be unjust for there countries. 

These circumstances make the approach of India relevant, which argues for a balance between the   non- trade interest and trade interests in agriculture sector. 

The objectives of the Indian approach towards agriculture sector: 

It is the responsibility of the government to ensure that the population is met with the nutritional requirements. The government should ensure the availability and supply of sufficient food. So enough flexibility in food and related sectors is to be provided for the developing countries where large population is depending on agricultural activities. Productivity and price stability is to be ensured by the intervention of the government. This situation can't be compared with agriculture and related sectors of    developed countries. 

In the light of the new developments, our experts remember that the World Food Summit 1996 which recognized the importance for food security of developing countries. This was an appreciable move by the summit beyond trade interests of certain developed countries. 

The trade interests proposed by the developed countries as based on: 

• Production of food grains by countries which are having cost effectiveness compared to other countries and

• All countries are having sufficient foreign exchange to pay for the food import they need. 

But in the actual cases a large number of nations are not in a position to find enough foreign exchange to procure internationally.  AOA   did not consider the barrier for a large number of developing country- the account problems.  Apart from this majority of the farmers unlike the developed countries is small or medium size, which causes lesser productivity.

Large-scale urbanization also causes for decrease in auricular land. Therefore the task before the developing countries is to find food for the population.

So government subsidy becomes unavoidable and is best suit among the various options.