Showing posts with label Food Demand and Supply: Quantitative Requirement. Show all posts
Showing posts with label Food Demand and Supply: Quantitative Requirement. Show all posts

Monday, July 27, 2020

FOOD DEMAND AND SUPPLY: QUANTITATIVE REQUIREMENT


FOOD DEMAND AND SUPPLY:

QUANTITATIVE REQUIREMENT

ABSTRACT:

India has made substantial progress in terms of overcoming national food insecurity by giving priority to self-sufficiency in food grain production with the help of green revolution. The various factors which affect the food demand and supply are population, sources of supply, per capita condition, climatic condition, lifestyle etc. There are different techniques adopted to tackle with the problems.

OBJECTIVE:

1.    To identify different factors affecting food demand and supply.

2.    To study the productivity of fruits and vegetables over the years.

3.    To analyze different aspects of the quantitative requirement of food.

INTRODUCTION:

Food is any drinkable or eatable commodity, which can be ingested, digested, assimilated, and satisfies the appetite of living beings. Food demand refers to the quantity of the food product which the buyers or consumers are likely to purchase at different prices in a given market at a given time.

    Food supply refers to schedule or quantities of a product that will be offered to for sale at different prices at a given time and in a given market. Generally food supply means the ability to access the food.

Factors affecting on Food Demand and Supply:

The various factors which have a direct and indirect effect on food demand and supply are summarized below.

1.    Population: The global population has reached 7 billion with the 7 billionth baby born in India in October 2011. India’s population has crossed 1.21 billion (1 billion = 100 crore) as per the Census 2011 which shown in table 1.

Table 1: Population in India

Decade

Population (in crore)

% Growth

1991

84.4

23.5

2001

102.7

21.3

2011

121.1

17.64

          (Source: Census Board of India)

As per the report published by Planning Commission, 29.2% of people in India still live their life under below poverty line (BPL), so our 1st aim is to cater to the food to a large number of population.

2.    There are two main sources for the supply of farm products at the national level. One source is production on the farms and the other is an import from other countries. If the requirement is not fulfilled with the domestic production then go for the importing of the produce.

3.    Per Capita Consumption: It is particularly affected by the per capita consumption pattern of an individual in a given area.

4.    Changing Lifestyle: In today’s era lifestyle of the people being more flexible. The choices for the fast-food more commonly observed in the younger generation. Again the preferences for the ready to eat (RTE) food driven by metros where the husband and wife both working.

5.    Climatic condition: Supply of the raw materials like finished goods, and semi-processed goods depend on the parameters such as climatic conditions, season, and perishability. These changing climatic conditions will affect crop growth and livestock performance, fisheries, and aquaculture yields and the functioning of ecosystem services in all regions.

6.    Advance estimates of food grain production: It is based on various factors of production (FOP). It includes mainly the prediction of household demand. We are in the need of more growth rate of the agriculture sector to meet the competition of developed countries.

7.    Broad Range of Projected Demand and Supply of Foodgrains, Oilseeds and Sugarcane in the 12th Five Year Plan: 2012-17 is shown in Table 2.

 Table 2 Projected demand and supply of food grains (2012-17)

Crops

Range of Demand Projections (MT)

Range of Supply Projections (MT)

Cereals

          181-220

240-251

Pulses

13-41

18-21

Food grains

218-252

259-272

Oilseeds

30-79 

30-41

Sugarcane

137-266

365-411

                                                     (Source: Ministry of Agriculture)

8.    Slow growth of food industry: It is due to the lack in specific infrastructure, lack of proper technology, R and D facility, scientific approach, more dependency (64 % workforce).

 

To tackle with the above mentioned factors following method or techniques should be adopted:

1.    Second green revolution: During 1970’s 1st green revolution took place, which had increased the production of rice and wheat mainly. Now India requires 2nd green revolution to increase the productivity of land because no more land available in the coming future so productivity is the main aspect to supply the food materials.

2.    By optimum use of the fertilizers: It will help to maintain the soil fertility over the years.

3.    Effective irrigation facilities: It is specifically useful for the cultivation of land with somewhat less availability of water. It is helpful during water scarcity, drought-like conditions and to make effective utilization of water.

4.    Agricultural credit facilities: To avail various agricultural credit facilities to farmers by different financial institutions such as NABARD, RRB, etc.

5.    Application of advanced technology: Different research organization like ICAR, CFTRI provides guidance for high yielding varieties (HYV), which can be helpful to increase productivity.

6.    Government support: Taking advantage of government initiatives in various schemes such as mega Food Park, transportation facility, cold storage unit, warehouse, etc. 

Quantitative Requirement Of Food:

Due to the challenge of feeding our vast population soon after independence, our main focus is to take care of the domestic demand of people with the help of 'self-reliance' in food grains. Foodgrains dominate the share of total crop output though their relative share has decreased from 42 percent in 1990-1991 to 34 percent in 2009-2010.

    India has made substantial progress in terms of overcoming national food insecurity by giving priority to self-sufficiency in food grain production by following an the agricultural strategy is well known by the name ‘green revolution’.

As a result of the new strategy, the food grain production increased from 82.02 million tonnes in 1960-61 to 281.37 million tonnes in 2018-19. Table 3 shows that the total food grain production. (All figures in million tonnes).

Table 3 Total food grain production

CROPS

Yr. 2014-15

2017-18

2018-19

1.FOOD GRAIN

 

 

 

Rice

103.04

111.01

115.6

Wheat

95.76

97.11

99.12

Coarse Cereals

39.83

45.42

42.64

Pulses

18.43

23.95

24.02

Total Food grains

257.07 MT

277.49

281.37

2.Oilseeds (9 types)

29.83

29.89

31.5

3.Sugarcane

354.95

353.22

380.83

4.Cotton (million bales)

35.15

33.92

30.09

      (Source: Ministry of Agriculture)

India’s estimated food grain production for the year 2018-19 is 281.37 MT, which is increased with 9% as compared to the year 2014-15. Indian food industry accounting for 16% of world population and 12% of world food production, today India is one of the largest producers and consumers of food in the world.

According to study, Indians spent approximately 35% of their total spend on food, which is whooping around $ 330 Billion in a year. India ranks 2nd in terms of the production of fruits and vegetables.

According to the Ministry of Agriculture India’s output of fruits and vegetables increased by to 284.45 MT in 2018-19 as compared to 281.74 MT in 2017-18. The growth is less because of less rainfall and other conditions. With the increase in production Fruits and vegetables now play a significant contributor to the GDP in the country as shown in Table 4.

Table 4: Production of Fruits & Vegetables

                                                     2017-18             2018-19                    

                    Fruits                     97.35                      98.57                    

                    Vegetables             184.39                   185.88                   

                    Total                      281.74 MT              284.45  MT  

                                                (Source: Ministry of Agriculture)

The Economic Survey 2018-19 states that to improve the flexibility of the agricultural sector and strengthen food security including availability and affordable access, the strategy for agriculture has to focus on improving yield and productivity.

Productivity is the average measure of the efficiency of production. According to the National Horticulture Board (NHB) the productivity of the fruits and vegetables increases from 1991-92 to 2018-19 with a measured growth of 9.96 to 14.82 for fruits and 10.47 to 18.40  for vegetables as shown in Tables 5 and 6.

Table 5: Area, Production and Productivity of Fruits

Year

Area (MHa)

Production  (MT)

Productivity (MT/MHa)

1991-92

2.874

28.63

9.96

2013-14

7.216

88.97

12.33

2014-15

6.110

86.60

14.17

2015-16

6.301

90.18

14.31

2016-17

6.373

92.91

14.58

2017-18

6.506

97.35

14.96

2018-19

6.648

98.57

14.82

                                                (Source: National Horticulture Board.)

                   Table 6: Area, Production and Productivity of Vegetables

Year

Area (MHa)

Production  (MT)

Productivity (MT/MHa)

1991-92

5.59

58.53

10.47

2013-14

9.396

162.28

17.34

2014-15

9.542

169.47

17.76

2015-16

10.10

169.06

16.73

2016-17

10.23

178.72

17.40

2017-18

10.25

184.39

17.97

2018-19

10.10

185.88

18.40

                                                (Source: National Horticulture Board.)

CONCLUSION:

There are different factors affecting food demand and supply but among all population is the prime factor which affects the food demand and supply. Hence, the main focus is to take care of the domestic demand of people with the help of 'self-reliance' in food grains. Over the years productivity of the fruits and vegetables increases and shown a good sign of prosperity of the country. Food laws ensure any article of food is not adulterated or misbranded and fit for consumption. It also assures the safety of the consumer.

 

References:

1.    Acharya S. S., Agarwal S. S. (2008), Agricultural Marketing in India, Oxford and IBH Publication, New Delhi.

2.    Dr. C. B. Mameria, Dr. B. B. Tripathi (2008), Agricultural Problems of India, Kitab Mahal Publication, New Delhi.

3.    Dr. Jaju R.H. (2015), Food Production Trends and Programme, Radheya Publication.

Reports & Journals

1.    Handbook of Horticulture Statistics – 2019, GoI.

2.    Economic Survey 2018-19: Statistical Appendix

3.    Annual Report of Ministry of Food Processing 2017-18, 2018-19

4.    Data Bank on Economic Parameters of the Food Processing Sector.

5.    The State of Food and Agriculture 2018-19.

6.    State of Indian Agriculture 2018 & 2019 Report.

7.    Dr. A. Kaur, Dr. K. S. Minhas (2012), Food Technology for Food Security, Agri Business and Food Industry, Vol. 8, No. 12,.

8.    S. Mahendra Dev and Alakh N. Sharma, (2010), Food Security in India, Oxfam India Publication.

9.    Shipra Singh (2011), Indian Food Industry growth by leaps and bounds, Agri Business and Food Industry, Vol. 8, No. 10.

10. S. Maheshwari (2011), Indian Fast Food Industry, Modern Food Processing, Vol.7, No. 2.