Hunger is India’s ‘biggest problem’ — one of the world’s largest food producers leaves millions hungry

Rice, wheat, milk and sugarcane — India is among the largest producers of these agricultural commodities, yet millions are still starving in the world’s most populous country.

“Hunger is the biggest problem in India,” a representative of global agribusiness Bunge told CNBC on the sidelines of the Commodity Trading Week held in Singapore. 

“There’s still [millions] of people that are hungry. They are still not getting the food they want. If they are getting the food, it’s not nutritious,” said Amit Sharma, Bunge’s global trade execution team leader.

India may be the second largest food producer in the world based on calorie content, yet the country came in 111 out of 125 countries in the recently published Global Hunger Index, which referred to the level of hunger in India’s population as “serious.”

India, with a population of 1.4 billion, accounts for one quarter of the world’s undernourished and is home to over 190 million hungry people.

India’s “poor infrastructure” has led to almost 40% of postharvest losses for some products, according to data from the International Trade Administration, part of the U.S. Commerce Department.

India’s Department of Food and Public Distribution did not immediately respond to CNBC’s request for comment.

Postharvest losses refer to food lost in the supply chain from the harvesting of crops to the consumption process. Vegetables and fruits expire more quickly when there’s a lack of cold storage, and hundreds of tonnes of food grains risk rotting in warehouses.

Other reasons for India’s low productivity include “inefficient” food distribution systems, erratic and unusual weather, heavy regulations as well as lack of education and training for farmers, the ITA said.

India’s food problem is also compounded by the fact that the rising middle class is on course to demand for more food — and better quality food as well.

“The first thing a person spends money on getting an extra income is on better food,” Garima Jain, deputy CEO and head of grains at Louis Dreyfus, said during a panel discussion at the conference. She added that protein requirements in India are set to increase. 

The need for food security has become paramount, both Jain and Sharma said. It’s an issue the government has to face head on as the country’s election approaches.

India is the world’s top producer of milk, and the second largest producer of rice, wheat, vegetables and fruit.

The country says it is “self-reliant and internationally competitive,” yet in the past year, volatile supplies and price movements for crucial food products have led the government to clamp down on overseas shipments.

India has faced some volatile supplies and price movements for crucial food products in the past year, which led the government to clamp down on overseas shipments.

In an effort to rein in domestic prices, India banned exports of onions from December to March. In October, the country extended its curbs on sugar exports which started in September.

India, the world’s top exporter for rice, also banned exports of non-basmati white rice in July.

Prices of tomatoes, an important staple in local dishes, also skyrocketed last year due to adverse weather conditions. 

With elections fast approaching, some are hoping that more measures could be given to aid the country’s food ecosystem.

“The upcoming Budget might include measures to support the rural and farming community, as the sector faces near-term disruptions owing to unpredictable weather conditions, and incipient inflationary pressures,” Radhika Rao, senior economist at DBS Bank said, told CNBC in an email.

India is due to release its interim budget on Thursday.