Hidden Costs of Agri-Food Systems

Central Idea

A recent United Nations Food and Agriculture Organization (FAO) report highlights the enormous hidden costs of global agri-food systems, totalling over $10 trillion.
In countries like India, these costs, amounting to nearly 11% of GDP, manifest in various forms such as increased poverty, environmental damage, and health issues.
The report suggests a transformation of agri-food systems, advocating for multi-cropping systems as a solution to enhance farmer well-being, community nutrition, and ecological health.

“Agri-food systems” refer to the complex network of activities, processes, and actors involved in the production, processing, distribution, and consumption of food.
This system encompasses everything from agricultural production (farming) to the final food products consumed by individuals.

Green Revolution Legacy: India’s agricultural productivity boost over the past five decades has largely been due to mono-cropping and chemical-intensive farming, particularly in paddy and wheat cultivation.
Nutritional and Ecological Consequences: This shift has led to a decline in crop diversity, impacting household nutrition and causing ecological issues like groundwater depletion.
Economic Viability: The privatization of agricultural inputs has increased farmer indebtedness, making agriculture increasingly unviable in India.

Public Distribution System (PDS): The National Food Security Act 2013 ensures food security for a significant portion of the Indian population, but the procurement policy heavily favours rice and wheat.
Decline in Coarse Grains: The focus on rice and wheat has led to a reduction in the cultivation of nutritionally rich coarse grains.
Water-Intensive Crops: Policies have also encouraged the cultivation of water-intensive cash crops like sugarcane, impacting biodiversity and water resources.
Impact of Global Trade: International market fluctuations and trade relations have historically influenced food production systems in countries like India, affecting local agricultural practices and crop choices.

Agroecology Principles: Multi-cropping systems, rooted in agroecology, can revitalize land and soil health while providing diverse crop yields.
Ecosystem Services: These systems offer multiple benefits, including cash provision, food production, and ecosystem services like nitrogen fixation and biodiversity support.
Nutritional and Environmental Benefits: Diversified farming can improve soil health and provide a more nutritious food basket, addressing the hidden costs of current agricultural practices.

Gradual Transition: A systematic shift from mono-cultivation to diversified farming is necessary, involving stages like non-pesticide management and natural farming practices.
Economic Modelling: Preliminary economic models suggest that diversified farming can sustain farm incomes and improve ecological outcomes in both the short and long term.
Addressing Transition Challenges: Overcoming hurdles related to local seeds, market access, labor requirements, and institutional support is crucial for a successful transition.

The FAO report underscores the urgent need to transform agri-food systems to address their hidden costs.
Multi-cropping systems offer a viable path forward, promising to enhance ecological health, farmer well-being, and community nutrition.
However, this transition requires concerted efforts from various stakeholders, including institutions, policymakers, and farmers, to create economic incentives and support mechanisms for adopting sustainable agricultural practices.