This year’s edition of The State of Food Security and Nutrition in the World is the first global assessment of its kind in the pandemic era. The report is jointly published by the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD), the United Nations Children’s Fund (UNICEF), the UN World Food Programme (WFP) and the World Health Organization (WHO).
- Already in the mid-2010s, hunger had started creeping upwards, dashing hopes of irreversible decline. Disturbingly, in 2020 hunger shot up in both absolute and proportional terms, outpacing population growth: some 9.9 percent of all people are estimated to have been undernourished last year, up from 8.4 percent in 2019.
- More than half of all undernourished people (418 million) live in Asia; more than a third (282 million) in Africa; and a smaller proportion (60 million) in Latin America and the Caribbean. But the sharpest rise in hunger was in Africa, where the estimated prevalence of undernourishment – at 21 percent of the population – is more than double that of any other region.
- Overall, more than 2.3 billion people (or 30 percent of the global population) lacked year-round access to adequate food: this indicator – known as the prevalence of moderate or severe food insecurity – leapt in one year as much in as the preceding five combined.
- Gender inequality deepened: for every 10 food-insecure men, there were 11 food-insecure women in 2020
- Nearly a third of women of reproductive age suffer from anaemia. Globally, despite progress in some areas – more infants, for example, are being fed exclusively on breast milk – the world is not on track to achieve targets for any nutrition indicators by 2030.
- GLOBAL hunger level has been skyrocketing since outbreak of COVID-19. In 2020, it rose by more than in the previous five years combined.
- Between 720 and 811 million people faced hunger during the first year of the pandemic, and the world is off the track to end hunger and malnutrition by 2030.
- Since India is among the worst hit countries, which is facing the spectre of the third wave while the second wave has hardly been over, a new wave of poverty and hunger is knocking at the door.
- The new data that represents the first comprehensive global assessment of food insecurity carried out since the outbreak of the coronavirus pandemic, reveals that it would have great implication in the world where one in five children is already stunted.
- About 10 per cent of the world population – between 720 and 811 million – were undernourished last year, more than half of them, i e, about 418 million were living in Asia, the report said. South Asia obviously is the worst region in Asia. Since India houses largest number of people in South Asia, it is also home to the largest number of hungry and poor in the region.
The report has also highlighted how climate change has left communities in developing countries most exposed to hunger. Weather related shocks and stresses are also “driving hunger like never before.” The five agencies have suggested in the report that “it will take a tremendous effort for the world to honour its pledge to end hunger by 2030,” and called for food production to be more inclusive, efficient, resilient, and sustainable.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.