Updated: September 27, 2021 9:20:44 am
There was a time when the US used food aid as a powerful diplomacy tool to contain hunger-induced discontent that, it feared, could trigger communist revolutions in underdeveloped countries. Successive post-World War II administrations made the Food for Peace programme, better known as PL-480, a cornerstone of US foreign assistance. India alone imported nearly 24 million tonnes (mt) of wheat under PL-480 during 1964-66. The US even supplied some 9.1 mt of subsidised wheat and corn to the Soviet Union in 1973, whose ideological significance wasn’t lost on anybody. For the US, food shipments, on concessional or outright grant terms, served both as a bulwark against communism and a means to relieve its massive farm surpluses. John F Kennedy estimated that it cost 20 cents a year to store a bushel of wheat and 38 cents to ship the same grain to India. Exporting grain free, then, was cheaper than stocking beyond two years.
The same opportunity — what Kennedy called “turning our great agricultural abundance into a blessing, for ourselves and for all the world” — presents itself, albeit in a smaller manner, to India today. At 90.41 mt as on September 1, the country’s public stocks of wheat and rice were the highest ever for this date, with the new paddy arrivals from October only going to add to these. Moreover, the stock pileup has taken place, despite a record 93 mt-plus grain offtake from the Central pool during 2020-21, much of it given out free/near-free post the pandemic. With government agencies procuring over 103 mt last year, the quantities flowing into the Food Corporation of India’s warehouses are far in excess of that going out. The “carrying cost” — interest, storage and other expenses — of the excess buffer has been estimated at Rs 5,589 per tonne for 2021-22. Clearly, there is economic as well as diplomatic sense in donating or bartering this surplus grain abroad. And where better to do it than in our immediate neighbourhood?
Afghanistan is now facing an acute food crisis from a combination of prolonged drought, regime change and associated instability. Sri Lanka, too, is grappling with food shortages, worsened by dwindling foreign currency reserves. What stops India from offering, say, 2 mt of wheat to Afghanistan as humanitarian aid and one mt of rice to Sri Lanka against payment in local currency similar to that under PL-480? Wheat can only be eaten or, at worst, diverted as animal feed. There should be no moral compunction, hence, in supplying it even to a regime that India cannot recognise. Grain diplomacy — a simple message that nobody in South Asia shall starve while we are here — can be symbolic of the New India: One that cares and matters to the world.
This editorial first appeared in the print edition on September 25, 2021 under the title ‘Grain diplomacy’.
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