State of Food and Agriculture 2024

The State of Food and Agriculture 2024 report by the Food and Agriculture Organization (FAO) of the United Nations highlights the hidden costs of agrifood systems around the world. For India, these costs are particularly significant, reaching around USD 1.3 trillion annually. These costs are not directly reflected in the price of food but are felt by society, impacting public health, the environment, and social well-being.

Key Findings for India

• Dietary Risks and Health Costs:
  • A large part of India’s hidden costs comes from unhealthy diets. High consumption of processed foods, sugars, salt, and additives, alongside low consumption of healthy foods like fruits, vegetables, and whole grains, contributes to major health problems.
  • These dietary habits are linked to non-communicable diseases (NCDs) like heart disease, diabetes, and stroke.
  • Specifically, unhealthy dietary patterns in India lead to a hidden cost of $128 billion due to the overconsumption of processed foods and USD 846 billion due to low intake of plant-based foods and healthy fats.
• Impact of Unhealthy Diets:
  • The report notes that the global trend of unhealthy eating—which includes high sugar and salt intake, and low consumption of healthy, plant-based foods—is responsible for 73% of the total hidden costs in India.
  • The overall health impacts from these dietary risks are a key driver of economic loss, as they contribute to lower labor productivity and increased healthcare costs.
• Social Costs: India’s agrifood systems also face social costs, including poverty among food system workers. These workers often suffer from low wages and poor working conditions, contributing to inequality within the agrifood sector.
• Environmental Costs: India’s food systems also have significant environmental costs. These include the emission of greenhouse gases from food production and transport, nitrogen runoff, and the environmental damage from harmful land-use practices, like deforestation for agriculture.

India’s Position Globally

• India ranks as the third highest in the world for hidden costs, behind China and the United States. Here’s how it compares:
  • China: USD 1.8 trillion
  • United States: USD 1.4 trillion
  • India: USD 1.3 trillion
• Globally, the total hidden costs of agrifood systems amount to about USD 12 trillion The majority of these costs (around 70%, or USD 8.1 trillion) stem from unhealthy diets that lead to diseases and reduced productivity.

Key Recommendations from the Report

The report calls for collective action to address these hidden costs and transform food systems globally. Here are some key recommendations:

• Incentives for Sustainable Practices: Governments should provide financial and regulatory incentives to encourage sustainable food production and reduce environmental harm, such as greenhouse gas emissions and nitrogen pollution.
• Promoting Healthier Diets: Policymakers should create programs to make healthy, nutritious foods more affordable and accessible to people, especially in low-income households.
• Environmental Protection: Incentivize actions that reduce environmental harm, such as certification and labeling for sustainable food products, voluntary standards for food companies, and industry-wide initiatives to promote sustainability.
• Consumer Empowerment: Providing consumers with clear, accessible information about the environmental, social, and health impacts of their food choices is crucial. This would allow consumers to make more informed decisions and contribute to better food system outcomes.