Daily Financial News Analysis – 24th Nov’19

Table of Contents

How to make India nutritional?

As a country’s food production goes up, its nutrition levels also go up.
But in most of the world, that hasn’t been the case.
India in last 5 decades
1. Total production of food grains has increased fivefold
2. From 51 million tonnes in 1950-51 to about 290 million tonnes in 2018-19.
5% of adult Indians are underweight
38% are stunted
On an average, Indians eat more carbohydrates, less protein, fruit and vegetables.
High-protein foods like dairy, eggs and legumes, which are nutrient-dense food, are often consumed in very low
This paradox has made it necessary for policymakers to investigate the complex linkages between
1. What is produced
2. How it is supplied to markets
3. People’s dietary choices
Food systems are not just made up of what is produced.

India is the largest producer of milk
1. 176 million metric tonnes in 2017
Indian Council of Medical Research (ICMR) recommends an average daily intake of 300 gm per day of milk to deliver the requisite macro-micro nutrients.

The national average of per-capita consumption is about 185 gm and 146 gm a day respectively in urban and rural India.
Milk production is still, predominantly, an activity pursued by rural smallholder dairy farmers.
Of the total milk produced, nearly 45% is used for self-consumption, and sold locally in rural areas.
Poor handling practices and little to no value addition contributes to a substantial portion of this getting wasted.
Of the 55% marketable surplus, nearly 70% is handled by the unorganised sector.
Adulteration is common, wastage is high, as are the prices.
This results in low milk availability in rural and semi-rural areas as well as limited access to low-income populations.
The remaining 30% is handled by both dairy cooperatives and private sector players.
Eventually, only 26 million metric tonnes of total production is processed, and is usually available only in urban settings.
Ultimately, only 15% of dairy is consumed as packaged milk or dairy product.
This limited marketing surplus, wastage, lack of processing and high prices have direct implications for availability and consumption.
Key intervention: formalising the informal channel within the dairy sector.
Create cooling or storage infrastructure.
Best practices in the collection, aggregation, cooling, quality control and marketing can be deployed.
Quality issues can also be addressed through training and education on clean milk practices.

At the processing level, plant certification will help to enhance consumer confidence.
Such initiatives can not only help to increase the supply of quality milk to the market, but also create employment opportunities in the nonfarm sector.

We also need to raise consumer awareness and nudge them towards making more nutritious food choices.
Changes from both the supply and demand side are must.
Indeed, all stakeholders — government, private sector and consumers — must come together to make this important shift in food systems and consumer choices a reality.