'India Less Vulnerable To Food Crisis'

On the global food crisis: I am very concerned about food riots and food troubles. Rapidly increasing food prices in so many countries means large parts of the population have been immediately hurt, particularly those living on $1-2 a day. We see people cutting back from three meals a day to one meal a day. It'll be a very serious situation if it continues in several countries. It's also becoming a very difficult political issue.

On an era of more expensive food: It seems so, at least for the short- and most likely medium-term. At least that is the assessment of a large number of experts. One shift from the past is that we see a more direct link between the energy markets and food markets—when there are high oil and energy prices, foodgrains can be used for ethanol production. This is an important link to know and be careful about. But all of us have to say food first—because supplying people with affordable, quality food has to be the first priority.

On the impact on India: This would be a problem for India as no one can shield itself from the international market. But India, I would think, is less vulnerable than smaller and more impoverished countries, which depend more on food imports. India is a strong country and has strong institutions. It has a tradition of seeing to it that there is no starvation and that food markets are working reasonably well. Of course, there are opportunities here. If prices come down, but stay at a much higher level than in the last five years, then there is an opportunity for a country like India, which has a strong potential in producing a vast array of grains and foodstuffs and also, over time, in food processing. But one has to ensure the large base of small landholders is used to provide input for the agricultural industry... use it to add value.