Showing posts with label food. Show all posts
Showing posts with label food. Show all posts

Friday, May 09, 2008

rediff.com: A crorepati who lives in a hut!

He instead started a catering business of his own, inspired by his mother who once sold idlis on the pavements of Chennai, worked as an ayah in an Anganvadi to educate him and his siblings. As a child, he also sold idlis in the slum where he lived. "We talk about India shining and India growing, but we should ensure that people do not die of hunger. We can be a developed country but we should not leave the poor people behind. I am worried for them because I know what hunger is and I still remember the days I was hungry," says Sarathbabu.

In August 2006, Sarathbabu's entrepreneurial dream came true with Foodking. He had no personal ambition but wanted to buy a house and a car for his mother. He has bought a car but is yet to buy a house for his mother. The "foodking" still lives in the same hut in Madipakkam in Chennai. Today, Foodking has six units and 200 employees, and the turnover of the company is Rs.32 lakh a month. But it has not been a bed of roses for Sarathbabu. After struggling and making losses in the first year, he managed a turnaround in 2007.
rediff.com: A crorepati who lives in a hut!
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Friday, November 16, 2007

Food subsidies

Drewnowski gave himself a hypothetical dollar to spend, using it to purchase as many calories as he possibly could. He discovered that he could buy the most calories per dollar in the middle aisles of the supermarket, among the towering canyons of processed food and soft drink. (In the typical American supermarket, the fresh foods — dairy, meat, fish and produce — line the perimeter walls, while the imperishable packaged goods dominate the center.) Drewnowski found that a dollar could buy 1,200 calories of cookies or potato chips but only 250 calories of carrots. Looking for something to wash down those chips, he discovered that his dollar bought 875 calories of soda but only 170 calories of orange juice.

As a rule, processed foods are more “energy dense” than fresh foods: they contain less water and fiber but more added fat and sugar, which makes them both less filling and more fattening. These particular calories also happen to be the least healthful ones in the marketplace, which is why we call the foods that contain them “junk.” Drewnowski concluded that the rules of the food game in America are organized in such a way that if you are eating on a budget, the most rational economic strategy is to eat badly — and get fat.

This perverse state of affairs is not, as you might think, the inevitable result of the free market. Compared with a bunch of carrots, a package of Twinkies, to take one iconic processed foodlike substance as an example, is a highly complicated, high-tech piece of manufacture, involving no fewer than 39 ingredients, many themselves elaborately manufactured, as well as the packaging and a hefty marketing budget. So how can the supermarket possibly sell a pair of these synthetic cream-filled pseudocakes for less than a bunch of roots?

For the answer, you need look no farther than the farm bill. This resolutely unglamorous and head-hurtingly complicated piece of legislation, which comes around roughly every five years and is about to do so again, sets the rules for the American food system — indeed, to a considerable extent, for the world’s food system. Among other things, it determines which crops will be subsidized and which will not, and in the case of the carrot and the Twinkie, the farm bill as currently written offers a lot more support to the cake than to the root. Like most processed foods, the Twinkie is basically a clever arrangement of carbohydrates and fats teased out of corn, soybeans and wheat — three of the five commodity crops that the farm bill supports, to the tune of some $25 billion a year. (Rice and cotton are the others.) For the last several decades — indeed, for about as long as the American waistline has been ballooning — U.S. agricultural policy has been designed in such a way as to promote the overproduction of these five commodities, especially corn and soy.


Sunday, April 01, 2007

Why the government keeps Indians poor

To understand the enormity of the falsehood, let me put things in perspective. The net per capita food availability in India in 1971 was 394 gm per day. This was just after the onset of Green Revolution in India. Exactly 30 years later, in 2001, the net per capita of foodgrain availability was 396 gm per day: a princely rise of 2 gm! In effect, for over 30 years our farm growth has barely kept pace with our population growth.
A comparison with other countries is central to understanding the extent of food shortage prevailing in India. Advanced countries, on a per capita basis, consume anywhere between 500 gm to 600 gm per day. Such healthy consumption in these countries is supplementary to the substantial quantity of meat, fruits, vegetables and milk.
The government spends about Rs 26,000 crore (Rs 260 billion) every year on food subsidy, through the public distribution system (PDS), for those living below the poverty line. It is estimated that for every Re 1 of subsidy to reach the ultimate beneficiary, the government has to spend approximately Rs 7 on the administrative mechanism. In fact, of the 300 million poor estimated to be below the poverty line in the country, only 25 per cent are estimated to have access to PDS.



Monday, November 27, 2006

Food, Farmers and Marketing

What does it cost Americans to eat what they eat?

Total food expenditures, which includes imports, fishery products, and food originating on farms, were $844.2 billion in 2001, an increase of 3.8 percent over those in 2000. Average food expenditures came to $2,964 per capita, 2.8 percent above the 2000 average. Away-from-home meals and snacks captured 47 percent of the U.S. food dollar in 2001, up from 45 percent in 1991 and 40 percent in 1981.


How Much of the Cost of Food Services and Distribution Goes to Farmers?

The estimated bill for marketing domestic farm foods–which does not include imported foods–was $498 billion in 1999. This amount covered all charges for transporting, processing, and distributing foods that originated on U.S. farms. It represented 80 percent of the $618 billionconsumers spent for these foods. The remaining 20 percent, or $121 billion, represents the gross return paid to farmers.

The cost of marketing farm foods has increased considerably over the years, mainly because of rising costs of labor, transportation, food packaging materials, and other inputs used in marketing, and also because of the growing volume of food and the increase in services provided with the food.

In 1990, the cost of marketing farm foods amounted to $343 billion. In the decade after that, the cost of marketing rose about 57 percent. In 2000, the marketing bill rose 6.9 percent. These rising costs have been the principal factor affecting the rise in consumer food expenditures. From 1990 to 2000, consumer expenditures for farm foods rose $211 billion. Roughly 92 percent of this increase resulted from an increase in the marketing bill.

The cost of labor is the biggest part of the total food marketing bill, accounting for nearly half of all marketing costs. Labor used by assemblers, manufacturers, wholesalers, retailers, and eating places cost $252 billion in 2000. This was 4.7 percent higher than in 1999 and 64 percent more than in 1990. The total number of food marketing workers in 2000 was about 14.3 million, about 17 percent more than in 1990. About 80 percent of the growth in food industry employment occurred in public eating places. A wide variety of other costs comprise the balance of the marketing bill. These costs include packaging, transportation, energy, advertising, business taxes, net interest, depreciation, rent, and repairs. Their relative proportions are illustrated in the accompanying dollar chart.

http://www.usda.gov/factbook/chapter2.htm