Monday, March 31, 2008

an impending food crisis

The Nation in recent history has never been able to be self sufficient in food production. I don’t mean stop imports, just produce to our capacity. By recent history I mean from 1900 onwards. To be fair our population has increased 7 fold in that period, so we have actually increased our food production, but not enough to sustain the growing population.

The past 15 years has seen the lowest growth rate in population, but also the lowest growth rate in food production in volume terms. For the purposes of this discussion, I exclude the Tea Industry, which has unique characteristics of its own as a major export earner.

We have had legitimate reasons to shift focus, primarily grappling with terrorism, however this shift has led to an enormous cost in imported food to satisfy our hunger. The million plus Sri Lankans who work overseas, has somewhat alleviated an otherwise even worse situation, both by sending foreign exchange from which we can buy food and also not being in the Island to consume it.

By all accounts globally, the increase in price of food will exceed the rate of inflation in every country. We are therefore doubly affected. We have to pay an ever increasing price for imports as well as for home grown food. I am not exactly sure what our expected food import bill is for 2008, but I will not be surprised if it is not much below our oil import bill for the same year.

This is a staggering indictment of the state of the country, which is purportedly still a rural agricultural economy, if one excludes the Western Province, which contributes over 50% of the GNP, but where the cost of food has risen by every criteria by 50% in the past 6 months.

The immediate importation of 100,000 tonnes of rice by private traders, from India due to the failed crop is a further indication of the impending crisis. There is no national stockpile for unforeseen events. Living in Hingurakgoda, I see so many empty storage buildings, owned mainly by the government, but also by private individuals, so we have the storage capacity to stockpile paddy.

Clearly, merely leaving it to market forces is not working, which I can also testify to as I also produce food and despite price increases my overall output has fallen more than the rise in prices leaving me with less revenue to cover my increasing overheads. Market forces, namely increases in supply due to higher prices may come about in the long term, but the foundation for this supply increase is what is imminently required.

If one takes coconuts as an example, the severe shortage of the crop has resulted in a spike in prices and the decimation of the export industry. However all the causes have not been thoroughly investigated. The south of the country is experiencing the effects of a mysterious disease that has killed the trees. There does not appear to be a cure for this, nor any steps to prevent it from spreading north to the coconut belt. If nothing is done we will not have one coconut tree left in the country.

California has an agricultural inspection to prevent fruit coming into the state. We may require checkpoints to prevent disease from spreading, far more important than to prevent the odd bomb passing through. Has anyone even addressed this issue? What good is it to win a battle by taking over the territory currently occupied by the Tigers, if we lose the war. So strategic thinking is necessary, not short-term goals to win elections for personal gain at the expense of starving the country in the long term. This is what is happening, even if we don’t realize it.

These are just two examples I am using to make a point but the story is the same for all crops in terms of lack of a plan to increase supply with efficient and cost effective production techniques.

Before we implement a long-term plan we must have a short term plan to reduce the exposure to imports and slow the increase in prices, only then will we begin to understand how we can achieve long term progress.

I recommend steps to reduce demand. Eating rice three times a day as advocated by the politicians is a luxury we cannot afford today. We must encourage the consumption of bathala(sweet potato) and manioc(casava), more nutritious than rice for the morning meal. More marginal lands can be used to grow this if the demand is there. The immediate effect is to reduce the demand for rice, and the consequent price pressure. I know this is putting a simple face on the solution, but I am making this point just as an example for us to think about.

I will at a later stage address the structural issues with ideas of how to achieve the objectives, using the practical experience I am gaining now.

Saturday, March 29, 2008

Update on rice prices



After I wrote the article below yesterday, I heard on the news last evening, that the government has removed the Rs 20 per Kg duty on imported rice, so that there will be no price gouging by the large millers. Additionally it was stated in the news item, from the government owned media that due to this timely action the price of rice will come down for the avurudu season. This was stated by a senior minister with responsibility for agriculture and hailing from the Polonnaruwa district, whose brother is one of the largest millers in the Island,and who controls Araliya Rice Mills.

I found this rather ironic. I hope it is true, for the sake of the beleaguered consumer and we shall see.

Since January when the last time the duty was removed, the prices from either India or Pakistan, from where all our recently imported rice came, has gone up by SL Rs 20 a kg, so this rice cannot be retailed below Rs 75/- kg. This is a crude attempt to dupe the poor farmers who are looking for a few more rupees, to frighten them into selling their small paddy harvest to the big millers (we know who they are)by implying that if they do not sell at the current price, the prices will fall when the imports flood the market at much lower prices.

As I am also a retailer of rice, and have sold this imported rice when SL rice was scarce earlier in the year, know that the consumer does not like its taste and they do not know how to cook it either to get the best out of it. So there is little competition from that.

The only truism in all this is that allowing imports duty free in a period of rising prices, is that there will come a price at which the consumer will substitute for local rice, and accordingly the price will be prevented from rising too high, say above 125/ a kg as then import substitution will take place.

Every thing has a price as they say and as usual the market place determines in the absence of artificial barriers such as duty. We can only isolate ourselves from the world market if we produce more of what we eat, by being more efficient, and more aware as consumers about how best to help our motherland.The only food of any scale we export is tea and cinnamon, it is staggering how much we import to eat, in an island so lush so rich and so blessed with growing conditions.

So farmers hold on to your stocks, consumers brace yourselves for an expensive avurudu no matter what our leaders promise, just eat less and watch your waist line it will just help you live longer and healthier and feel less stuffed.

For the record I am a rice farmer who grows his own rice pesticide free, and also buys from neighbors and stores, par boils, mills (not my mill) transports and sells direct to the eating consumer either from my shop or home delivery to the door about 12 varieties of newly milled rice. At the moment I drive my own truck from my fields to delivery points in case one thought I am just sitting at a computer all day.

Friday, March 28, 2008

Paddy farmers asserting their rights


I am pleased to report that the paddy farmers in my area are now getting a little more assertive.The paddy price has now reached all time highs, and my neighboring farmers will not even sell a few bags to me at the going market price.

The reason is that they expect the price to rise at least 50% in the next two months and they are hoping to hold on to their stock for as long as they economically can. Earlier the mill owner benefited by buying low and stocking till the prices rose. The farmer wants to do that.

If farmers across the country take this route, then they will create a shortage of paddy in the market artificially inflating the price, however if this is sustained the farmer will benefit.

It will be interesting to note what will happen. As of yesterday a 64kg bag (three bushels) of White Nadu was 1,800 and White Samba was 2,300 before milling. This is a 25% increase from a week ago, when it was at its lowest. I will keep this article updated with dates of the price increase.

On a related note I read that in Thailand owing to the rise in paddy price, people are stealing paddy from the fields, interestingly, I heard the same had happened in a field close to mine last week. In an hour one can steel the equivalent of one bag of paddy by cutting the ripe stalks at night. So it is equivalent to a weeks wages for a farm laborer.

It makes you wonder doesn't it, after my earlier stories of coconut stealing.

Thursday, March 20, 2008

Anura Bandaranayaka

Much was expected of a man born to a South Asian dynasty, to privilege and wealth. He had the opportunities, the contacts, the personality, the charisma and the honesty. He was felled by some very Sri Lankan traits; The only son syndrome being one, which does not train one to fend for one self. The other being alcohol dependency. He was very ill for the latter part of his life suffering from gout and diabetic conditions, which all thought would kill him. The cancer was just the final reason for his death, but he had effectively died as an effective person on the world stage a long time ago.

He made what in hindsight can be labeled the most foolish of political gambles that shot himself in the foot too many times. He was a Greek tragedy. He was a pitiable person with many endearing qualities of humanness. He died in a rather disheveled government guest house, where he chose to live rather than in his modest home, next to his childhood Tintagel.

Others with the opportunities given him could have scaled heights, exceeding their forebears. His achievements were modest by his lack of political acumen and determination to succeed in whatever he ventured into. The expectations were probably his downfall and this is a lesson to those who think people are born to position rather than deserve it due to effort and ability.

We are partly who we are due to our birthright, however we are more who we are from what we have achieved by using that birthright for a purpose higher than ourselves. Life is not a box of chocolates, but more a game of poker, and while the hand that we are dealt will help us its how we bluff the others to get what we want, when we have a poor hand that gives us the edge and select us from the pack. When we lose the bluff we are forgotten, but the only people who will never forget us are our true friends from whom we cannot hide and who give us friendship no matter how wrong we are or what mistakes we make. Those friends and family are worth cherishing till death and beyond and in them I believe Anura did have people who gave but did not expect anything in return and to them he will truly be missed.

preventing people from going to the middle east as housemaids

The remittances of the unskilled Sri Lankan housemaids who form 70% of those who have gone overseas on term employment is the backbone of Sri Lanka’s economy. Those who currently advocate a ban are wrong in the way they are attempting to prevent the free movement of people, in short denying a person’s fundamental right to leave the country if he of she so wishes. They should in fact try to make more attractive for them to stay.

I do not agree with unskilled females leaving as I have seen the social consequences of this action being truly horrific. However the way this is reduced is by education and persuasion so that those who leave are forewarned of the consequences of their actions in some training program to lessen the social impact.

The men who encourage their wives or daughters to leave should also be included in the program to understand what may happen as a result. This means that they will not be surprised if the wife does not want to return home as she has found a way of life that is more suitable than the one she left and give reasons as to why it may happen, especially in the cases where the males are alcoholics and she is leaving to get away from the home fire.

I agree with the intention of sending skilled people, but that is not possible in a short while as the skills have to be first acquired and only then will there be a pool of skilled people to send overseas.

I notice all sorts of ruses to send people overseas. Politicians are famous for getting commitments from overseas employers. They then promise for a fee, can be as high as one million rupees to send a person to Italy on a 5 year contract. It should be free. The person paying this may sometimes be fooled as to the real terms of the contract and only discover the ruse once he has left and paid the charge. The reasoning is that the monthly salary is 200,000 and in 5 months they could pay it off. People should realize that the salary will hardly pay for living there and there may be no chance of saving the one million unless one sleeps on the streets, which they would not even contemplate in their own country. These job seekers should be told that costs are even higher than the income and that income really is insufficient to live on.

A lot of the problem is the misconceptions that people have and in order to educate them in this regard mandatory government sponsored programs that show the reality should be made a requirement of employment.

The agencies that send people should also be better regulated, as they give a very false picture which is only apparent once the person has gone and then the error cannot be rectified.

Encouragement of skilled males to go is a better way, so that the family bond is kept with the mother. Many countries only send males, especially muslim ones for this very reason. Now that we have already sent so many overseas and some females continue to go means it is unfair to prevent those from leaving.

Bilateral agreements of minimum wages must be set up, especially as the costs of living in the middle eastern countries is also skyrocketing especially in food and Sri Lankans are paying more for the food they want to eat which may not be provided by their employers who have different dietary habits.

All this is elementary stuff, which our people are ignorant about. This is an area where the government should intervene to educate. We are not providing the skills, even language skills, as knowledge of English can enhance the value of a worker and accordingly the pay received.

In summary, every one seeking employment overseas should undergo a mandatory training program to make them aware of the benefits and pitfalls of their choices. Skill acquisition should be encouraged and males should be encouraged to go and mothers should be discouraged from going. Minimum wage guidelines should be set on a bilateral basis and other worker health and safety measures enacted. Better consular facilities to help those already overseas as well as making every one aware of the laws and rights of labor in the country they are working at needs to be set up. While other export industries get subsidies this one needs a greater degree of funds spent, to make sure we as a country maximize its full potential with those who go overseas. The number of job agencies needs to be curtailed to enable better monitoring and supervision, and errant ones severely punished with hefty fines.

The business of media

One must never forget that in a discussion of media ethics, that News Media is a business engaged in a competitive world to grab as much attention in terms of viewer numbers so that they can either get more advertising or charge more for advertising depending on the ratings.

One can include television programs, soaps and movies as examples of media influencing public opinion and their effectiveness is even greater in poorer countries with limited choice of papers and viewing.

The journalist is therefore under constant pressure to perform and in this regard there have been instances even at the New York Times of fabrication of news. This pressure influences the journalist to word an event to sensationalize them so that it would grab the attention of the viewer or reader. Even photo-journalism can be misused in this regard, as the angle of the picture can tell a very different story from the actual.

There is a need to get a scoop and in so doing a mundane event can look like an important one. There are some topics that are hot topics and more than a fair share of news pertains to that, such as the Iraq war, and Global Warming in the international media and the LTTE civil war incidents in Sri Lanka. Media does not necessarily cover topics of interest to public as often the journalists are out of tune to the readership or viewership, coming from a different background in some cases, and therefore concentrating on topics that matter to them.

People are often not told the whole story, the important story and are influenced to give importance to topics they would otherwise not be interested in as it does not affect their daily lives. One must bear in mind sensational gossipy stories are now commonplace on the grounds that news is also entertainment and therefore the under the sheets activities of the rich and famous also become news. The word is to dig dirt on people to bring them down a peg, a human frailty.

When news or programs are viewed in this light, then a more balanced opinion can be formed, but the problem still remains, that there is a lack of perception and cynicism in what is presented and a lot of believing what is fed in a literal sense of the word.

Media responsibilities: a perspective of two specific examples

I will start by looking at the delicate balance of having to report on the campaigns of Hillary Clinton and Barack Obama for the right to represent the Democratic Party at November’s general election. With the two candidates running neck and neck, a balanced reporting aim by the large news media outlets is extremely difficult to ensure. A reporting journalist, by his very words could sound biased. A news editor by choosing the news story can influence one side over the other and either party can make claims of unfair reporting leaning to the opposing side.

I am certain that there are behind the scenes meetings to ensure that there is balance and duration of news clips and angles carefully calculated to back up the claim of fair reporting. Obviously if a media outlet comes out backing one candidate over another, it will get easier to justify reporting angles and biases.

Of course the alert listener, reader or viewer may interpret a bias in a different way to the editor who includes a piece of reporting. The subtleties of reporting can influence the user and in this tight race make a difference, which will eventually determine the candidate and in an indirect way the future president and the course of world events.

Only when one carries through this argument all the way can one realize the importance of the responsibility the media outlet has in influencing world affairs, through the future leadership of the US.

In Sri Lanka on a completely different note, the current controversy of the government and private media reporting on human rights abuses is worth looking at also. The state denies and refutes all allegations, blaming it all on LTTE backed NGOs and unpatriotic reporters sensationalizing incidents to promote their agendas, making the conduct of war much harder.

Even here some form of responsible reporting is necessary in a framework of informing and educating the public on what is happening. Private media also self regulate in order not to rock the boat too much and incur the wrath of state control, and the loss of state largesse in the form of advertising revenue.

It is noteworthy that there has not been one incident of the abuser being caught and owning up to who his patron is so that a finger can be pointed at the state. The seeming ability of the state machinery to get away with killings, and abductions is emboldening these methods of intimidation and abuse with the investigative arms of the police being singularly unable to prosecute any of these cases.

Therefore while the news of abductions is reported, it is up to international bodies to point the finger at the government. The recent incident where the US government country report cited Sri Lanka very poor in terms of Human Rights violations, which was vehemently denied by the government, maintained as fact by the Embassy, is a case in point. Of course one sides view of what is a Human Rights violation is another’s right to refute. Some appear to condone others to castigate depending on the moral stance taken. In a time of war the criteria can change from that in a period of peace.

When the reporter is culturally different it adds another dimension to the problem, bringing race bias into the argument because an outsider usually reports with a normal bias towards minority communities. It is done with the knowledge that power is on the side of the state and it is up to the state to defend the accusations if untrue as there is assumed the other party has less of a chance to present their views.

In the current furor over the reporting of the uprisings in Tibet, China has banned and censored all reports. The average Chinese takes the governments line and international media through the new technology of I reporting by amateurs, using mobile phones and uploading direct to the Internet from the site, to sensationalize reports without verifying the extent. An isolated incident in a village can seem in the news to be extensive.

In the same light, the Tibetan groups in Tibet, exiles outside the country and ethnic Tibetans in China seem to have come together in a planned uprising to bring world attention to their plight at a time when this is embarrassing to the Chinese government in the light of the impending Olympic Games and the disruption it may cause. It is an opportunistic move on the part of the Tibetans and here again it is up to the Chinese authorities to deal with it fairly, so as not to antagonize world sympathy for an ethnic minority that has been agitating ever since the Chinese takeover of Tibet for over 50 years. There is no doubt as to the outcome, as the might of the Chinese military will quell the agitation. The way in which China deals with the issue, will determine how they are perceived with respect to Human Rights abuses and tolerance of dissent from within.

In the instances referred to here, it is apparent that the Media is very powerful in shaping public opinion, and with this power comes responsibility to be as fair as possible to all sides as both sides present a different view-point. It is also true that journalists are mere employees trying to become more prominent in their fields and sometimes sensationalize a report to advance their personal agendas, just like any other employee in any other job trying to get a promotion.

The use of proportionate reporting is not possible as each news item carries a similar weight irrespective of the importance of the news, as that is the nature of the beast called News Reports.

The manipulation of news is common in all countries especially the West, with specific regard to the US, which is even more savvy at it than say either Russia or China and in my opinion, India has the most balanced reporting bias, with democracy and journalistic ethics to be admired and emulated. No one is perfect and the public should learn to be more cynical and able to sift information fed to them rather than believe everything they are told.

To conclude we should be aware of the power of all arms of media, and learn to read between the lines to take a proportionate view of the content and come to our conclusions based on our best guess as to the accuracy of what is being reported.

Bear in mind that what is not reported is also news, which we are not told about, and we cannot even imagine what we are not told! One can therefore subscribe to my current opinion that it is not worth watching reading or listening to news as it is not worth it as I can make the news in my head to suit my point of view at any time. This from someone, who was a news addict, not too long ago knowing what was happening in all parts of the world on a daily basis.

In fact my mind is now not clogged with news, and I am free to think.