“agricultural income insurance.” Such a move would protect farmers’ income in the event of a fall in prices of food commodities while also guarding against cli- mate risks in production.
BANGLADESH
South Asian countries have had a mixed record in terms of encouraging the development and com- mercialization of genetically modified (GM) crops. Tis is true despite the existence of biosafety policies, especially in terms of GM-crop cultivation. Earlier, India allowed the commercial cultivation of Bacil- lus thuringiensis (Bt) coton but did not approve the release of Bt eggplant. Te Bangladeshi government made the bold decision in 2013 to allow farmers to grow genetically modified Bt eggplant commercially under government supervision. In 2014, 20 small eggplant farmers were given Bt seedlings for cultiva- tion under government supervision in four repre- sentative regions well suited to the varieties. Earlier studies have shown that Bt eggplant increased yields by 30 percent and reduced pesticide use by about 70–90 percent, resulting in a net benefit of about US$1,868 per hectare.6 Te government plans on bringing about 40 per-
cent of the total 50,000-hectare eggplant area under Bt eggplant cultivation in the next five years.7 Te Indian government, though, has not approved the commercial release of Bt eggplant, citing concerns about food safety and biodiversity. However, there is no scientific evidence to substantiate such concerns, and the initial Bangladeshi experience (although it is based on a very small sample) suggests the poten- tial for significant benefits to small farmers. Tis common vegetable is largely grown in high pover- ty-ridden areas by farmers who cultivate very small plots. Savings on pesticide costs, increases in yields, and low crop damage all result in higher returns to farmers. Higher yields and lower costs of produc- tion for farmers can also result in lower prices of this vegetable, thereby benefiting consumers. Tis small technological intervention may therefore be a win- win proposition for farmers as well as consumers. Progress has also been made in terms of non-GM
crops, such as how Bangladesh, in collaboration with the International Rice Research Institute, developed
and released zinc-biofortified rice for cultivation.8 Te non-GM biofortified rice variety contains 19 milligrams of zinc9 and 9 percent protein per kilo- gram. It is worth mentioning that a large part of the population in South Asia is trapped by hidden hun- ger,10 lacking key minerals, including zinc. Because rice is the main staple food crop in Bangladesh, this zinc-rich rice can help reduce child mortality and stunting rates by decreasing the incidences of diar- rhea and pneumonia in the country.
SRI LANKA
Sri Lanka intends to amend its Seed and Planting Material Act, which mandates compulsory regis- tration for farmers and certification of all seed and planting material by the government’s Seed Certifica- tion Service. Te act prohibits sharing or exchanging seeds and planting materials, unless farmers are regis- tered with the service. Te aim of the act is to protect farmers’ interests from the seed industry—to avoid the marketing of their seed and plant material pro- duced without sharing the benefits with the farmers.
2015 AND BEYOND
A main challenge facing South Asian countries is to reduce both poverty and undernourishment. Higher subsidies are a major constraint in investment in creating productive assets and ensuring food and nutritional security. Major reforms are needed to boost investment in agriculture, generate employ- ment opportunities, and improve social safety net programs. Te challenge for reforms in 2015 is how to beter target the poor for various social safety net programs, and how to improve the efficiency of such programs. Te reform process needs to increase the participation of the private sector in agribusiness, rural development, and grain management. It would be desirable to (1) reallocate government priorities and resource allocations away from direct input sub- sidies and toward such areas as agricultural science and rural education, (2) remove some of the govern- ments’ more distortionary market interventions, and (3) improve the ease with which private firms can invest in input and commodity markets as well as engage in value-added activities in the sector. ■
SOUTH ASIA 87
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