Trade and stock management to achieve national food security in India and China?

China and India have to provide food security to 1.36 billion and 1.25 billion populations, respectively. The purpose of this paper is to address the roles of trade and stock management in achieving food security in these countries, such as the impacts of trade on consumer and producer prices and incomes of farmers and others and implications for food security, and the impact of stock management on price stability, availability, access and nutrition.

The paper is based on secondary data and literature on these issues. It compares the policy tools of trade and stock management used in India and China for food security purpose, in terms of long-term efficiency, in order to provide better understanding on how to achieve food security through public interventions.

Although stock is an important tool for food security, it is likely to be costly if used for price support and redistribution purposes. Trade might provide cheap food to enhance access to food, the impact on domestic producers and the volatility in world market may lead to serious problems. A carefully designed policy combining stock management and trade may help achieving food security.

This paper relies on existing literature of current issues and policies, and tries to conduct comparative study on India and China, the two largest countries in the world. The scale and depth of the study are restricted by authors’ knowledge, hence may not be adequate in addressing those important issues.

Both India and China are undergoing policy review regarding food security, under pressures in domestic market and from multi-nation negotiations. This study may provide better understandings of the issues related to policy reform and trade negotiation.

Though a large portion of factual materials are adopted from existing literature and statistics, the analyses are those of authors.