Roping in Canada for food security BY A DIDAR SINGH, MAR 1, 2014 : Recent spurts in food prices suggest that a purely domestic
strategy will not suffice for India's food security, where food
security refers to assured supply at stable prices. There is, thus, clearly a need to find international partners in the agri-
food segment, given the sheer volumes required going forward, and
the diversity of this sector. Now, while an India-Canada energy
relationship seems a natural tie and is much talked about, it is less
apparent that the North American country can play an equally
significant role in aiding India generate enough food for its populace. In fact, in some ways Canada does already play a real role in helping
India increase the availability of food for its population, through its
supply of pulses and fertilizer. Despite Canada being mainly a services economy, the agri-food
segment has emerged as a major driver of economic growth in
Canada in recent years. Food processing and beverage industries
are actually Canada's largest manufacturing estate and also its
greatest industrial employers. Given Canada's relatively small
population compared to the size of its agri-food sector one can imagine that the country has a rather lot of surplus produce that is
available for export. It is not surprising therefore, that Canada's chief exports to India at
the moment come from the agri-food segment. In the past few years,
Canada has emerged as a major source for pulses which, for a
multitude of Indians is their main source of protein. Annual imports of
pulses from Canada have typically hovered in the half-a-billion dollars
range in recent times. Now although the Indian government is working towards boosting domestic pulse production through higher
support prices, it is also simultaneously promoting consumption of the
same, with a view to restoring average consumption of pulses to 50
grams per person per day. Playing a Major role As such, despite being the world's largest producer of pulses, India
will in all likelihood continue to also be its largest importer. And it is
here that Canada, which now accounts for 35 per cent of the world's
pulses trade, being the second largest producer, will continue to
score especially given a zero tariff regime. By some accounts
Canadian pulses are playing a major role in stabilising wholesale prices of lentils such as Masoor across India. Canadian imports are also playing an input side role in boosting
agricultural productivity in India. India after all imports a major share
of its potash requirements from Canadian entities like the Potash
Corporation of Saskatchewan which is incidentally the world's largest
producer of potash. Now as India seeks to increase average yield for
food grains from the 1,750 kg/ha today to 2,900 kg/ha by 2030 demand for agrominerals such as potash found in relatively thin and
shallow deposits that formed millions of years ago from the sediments
of lagoons and used to build bulk fertilizers is only going to increase
given their agri-nutritional content. In the future greater potash supplies from Canada will also reach
Indian shores via investments being made by companies like
Rashtriya Chemicals and Fertilisers Limited which is looking to
acquire a 40 per cent stake worth a billion US dollars (USD) in a joint
venture with Western Potash Corp for a new mine in Saskatchewan.
Other fertilisers too will be increasingly sourced from Canada in the years to come. IFFCO announced earlier this year that it is setting up
a 1.27 million tonnes urea plant in Quebec's Becancour Waterfront
Industrial Park with a local partner and an investment of 1.2 billion
USD. The plant which is expected to come online by 2017 will notably
use shale gas as its feedstock. But an Indo-Canadian agriculture and food relationship has to move
beyond a mere buyer-seller framework. Under a memorandum of
understanding (MoU) signed in 2009 between the agriculture
ministries of both countries, India and Canada agreed to set up
knowledge sharing mechanisms in the three thematic areas of
emerging technologies, agricultural marketing and animal development under a joint working group mechanism with a sub-
group for each of the aforesaid areas. At the other end, one of the best ways to acquire Canadian expertise
would be to attract investments from Canada into improving India's
agricultural logistics. As a country that has a wastage rate as high as
40 per cent for fruits and vegetables and 20 per cent for grains, India
will certainly welcome investment from Canadian firms towards
creating a modern storage and bulk handling system for food transportation, including cold chains, warehousing, material handling,
consolidation and data management. Heading further into the 21st century we find an evolving India-
Canada agricultural relationship. The true institutionalisation of this
co-operation will of course be achieved once the CEPA, which is
being currently negotiated, is finalised and parliamentary approval for
the India-Canada Foreign Investment Protection Act is received. (The writer is secretary general, FICCI)
http://m.deccanherald.com/content/389039/...anada-food-security.html/
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