India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

Despite their weak economic pr<strong>of</strong>ile, <strong>India</strong>n farmers represent an enormous voting bloc,
<strong>and</strong> political parties require the backing <strong>of</strong> these voters to help win elections. 25 According
to numerous <strong>India</strong>n sources, for fear <strong>of</strong> being voted out <strong>of</strong> <strong>of</strong>fice, <strong>India</strong>n politicians are
reluctant to set policies that may negatively affect farmers. 26 Out <strong>of</strong> this political reality, a
deeply held view has taken hold among <strong>India</strong>n policymakers that farmer incomes should
be increased through targeted government spending. 27
Policy Objectives
Emerging from this environment are three broad government objectives for <strong>India</strong>’s
agricultural domestic <strong>and</strong> trade policy: food security, food self-sufficiency, <strong>and</strong> income
support for farmers. 28 Ensuring that millions <strong>of</strong> poor citizens have access to food staples
at affordable prices is a primary objective <strong>of</strong> <strong>India</strong>’s central government, which has
chosen to coordinate domestic food production <strong>and</strong> international trade policies to meet
this objective. 29
Food security is defined by the World Bank as “access by all people at all times to
enough food for an active, healthy life”; 30 its components are <strong>of</strong>ten listed as food
availability, access, <strong>and</strong> use. 31 Of the three, only availability <strong>and</strong> access will be addressed
in this investigation. Food availability can be met with domestic production, imports, or a
combination <strong>of</strong> the two. Food access can be achieved through government policies that
lower prices to affordable levels for the poor or through payment schemes that cover the
full cost <strong>of</strong> the food. In all cases, however, food security requires that food be available in
sufficient volumes at prices consumers can afford.
Food self-sufficiency is defined as the extent to which a country can satisfy its food needs
from domestic production. 32 In seeking food self-sufficiency, <strong>India</strong> focuses on staple
crops, primarily food grains such as wheat <strong>and</strong> rice. The concepts <strong>of</strong> food self-sufficiency
<strong>and</strong> food security differ in that food self-sufficiency encompasses only national food
production for sources <strong>of</strong> supply, while food security takes imports into account. 33 <strong>India</strong>n
25 Chatterjee, “BJP Goes One Step Ahead <strong>of</strong> Cong in Dangling Sops,” The Times <strong>of</strong> <strong>India</strong>, April 4, 2009;
Bykere, “In <strong>India</strong>, Populism is the Real Electoral Winner,” The Wall Street Journal Asia, June 10, 2009.
26 Birner et al., The Political Economy <strong>of</strong> Agricultural Policy Reform in <strong>India</strong>, 16, 18, 40, 45; industry
representative, interview by Commission staff, New Delhi, <strong>India</strong>, May 26, 2009.
27 Government <strong>of</strong> <strong>India</strong>, Planning Commission, Eleventh Five Year Plan: 2007–12, vol. 3, 2008, 3–4.
28 Government <strong>of</strong> <strong>India</strong>, Planning Commission, Eleventh Five Year Plan: 2007–12, vol. 3, 2008.
29 Ibid., 15.
30 The U.S. Agency for International Development (USAID) <strong>and</strong> the United Nation’s Food <strong>and</strong>
Agriculture Organization (FAO) have similar definitions. USAID, “Policy Determination: Definition <strong>of</strong> Food
Security,” April 13, 1992.
31 More formally, the terms are defined as the following: “food availability” is having enough food
consistently available; “food access” is having enough resources to obtain foods needed for a nutritious diet;
<strong>and</strong> “food use” is the appropriate use based on knowledge <strong>of</strong> basic nutrition <strong>and</strong> care, as well as adequate
water <strong>and</strong> sanitation. WHO, “Food Security.” For a more detailed discussion <strong>of</strong> food security <strong>and</strong> citations to
several studies on the issue, see FAO, Trade Reforms <strong>and</strong> Food Security, 2003.
32 Thompson, Implications <strong>of</strong> Economic Policy for Food Safety, 1999.
33 Ibid.
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