“Underdevelopment was and still is generated by the very same historical process which also generated economic development: The development of capitalism itself”

- Andre Gunder Frank

In 2006 the world’s hungry stood at

842,000,000

In 2009 the world’s hungry stands at

1,025,000,000

Which means 1 out of every 6 person goes hungry

On an average a person from U.S.A. and Canada consume 800 Kg of grain per year

On an average a person from India consume 200 Kg of grain per year

What does this mean ?

India has of the world’s hungry13

India’s Buffer stock of rice is 22.9 million tonsIndia’s required amount of rice is 5.2 million tons

Where does all the extra rice go ?

Policy measures have eroded the public distribution system; for example, monitoring mechanisms are understaffed and corrupt. As a result, much of this stock sits in warehouses and wastes away.

Wayanad:-place

1. Derivation: Wayal Nadu meaning land of paddy fields. 2. Underdeveloped agricultural district in Kerala, India.

The British authorities opened up the land of Wayanad for cultivation of Tea, Coffee and Cardamom and put up many large Estates.

“Wayanad is perhaps the worst hit on account of the new agenda on trade liberalization adopted by the Government of India through its import policies.”

- P Krishnaprasad (2005).

With the commercialization in agriculture many farmers have turned to cash crops like coffee.

New economic policies

Globalization

Import policies of agricultural products

Low price

High prices of raw-materials used in agricultural production

Lack of subsidiesLong-term negligence of irrigation facilities

Incomplete planning of urgent development policies

High interest rate

Working of non-banking institutions

Excessive use of chemical fertilizers and pesticides

Continuous drought

Factors which led to the Agricultural dilemma and Debt- trap in Wayanad.

Fluctuations in the international markets determine the price of coffee.

Competition in production with other countries affects the price level negatively. Besides this, tariff determined by GATT contract made price level unstable.

To compete in the global market, Indian farmers reduce their prices; for example, the price of coffee decreased from Rs. 67 in 1998-9 to Rs. 15 in 2004-5.

New emperors of the food and beverage business have emerged to control the entire industry from production to retail.

Farmers sell to middle men that then sell to factories.The retails price is a 1900% increase

These giants have grown even as global hunger has increased.

Many families are forced to migrate to cities to work as unskilled labor.

Poverty from which hunger arises is politically constituted

Credits

• Oxfam report on Coffee“Mugged”• Dimensions of Agrarian Distress: The Case of

Wayanad District, Kerala – Sunil P T• The Times of India, Crest Edition.

December 19th 2009. • Rucha Dhayarkar (Photography: Slide 23)

A Presentation By

Ilona NanayRagini Lall

Rohan Gupta