Enhancing resilience in global food security and trade

Dr. Arpita Mukherjee, Professor at ICRIER, discusses the key challenges and opportunities in global food security, trade policies, and supply chain resilience. She highlights how disruptions like the COVID-19 pandemic and the Russia-Ukraine war have exposed vulnerabilities in global food supply chains.

Emphasizing the need for policy stability, she critiques protectionist measures such as export bans and import restrictions, advocating instead for a shift towards value-added agricultural exports. She underscores the importance of international quality standards, transparent supply chains, and sustainable practices in maintaining market competitiveness

IBT: What are the biggest challenges to achieving global food security today, and how are these issues related to global trade policies and market liberalization?

Dr. Arpita Mukherjee: The biggest challenges to achieving global food security today are multifaceted. The COVID-19 pandemic disrupted supply chains globally, and the Russia-Ukraine war caused significant wheat supply disruptions in certain markets like the EU. Another major issue is growing protectionism, with countries, including India, imposing sporadic export bans,  and implementing import restrictions to protect domestic industries, which can negatively impact consumers.

Developing and less developed countries face additional challenges, such as food wastage in the supply chain due to weak supply chain infrastructure. These systemic challenges collectively impact the world economy and global food security.

IBT: Reflecting on the pandemic, the Ukraine war, and recent trade disruptions, what lessons can businesses and policymakers draw to create more resilient supply chains in the future?

Mrs. Arpita: Food policies are country-specific, so I’ll address this from India’s perspective. As one of the largest food exporters, India has the potential to be a key player in resilient supply chains, particularly as many countries seek alternatives to China. However, to achieve this, we need to move beyond being a primary exporter of raw and intermediate products and focus on value-added exports.

Challenges exist on both domestic and export fronts. Meeting international standards is crucial—whether related to food safety or broader sustainability regulations like the EU’s environmental and social governance requirements. Consumers are increasingly demanding safe, healthy, and traceable food products with minimal chemical use. For example, the growing demand for turmeric in nutraceuticals requires high-curcumin varieties (5% or more), which India is only able to cater to 10% of the global demand. Businesses must work closely with farmers to ensure that the quality and standards required for different types of processing and different export markets are met, or else we may loose our export markets. .

Additionally, transparency in the supply chain is now a priority for global consumers. They want to know the origins of their food, whether child labour was involved, and whether adulteration occurred at any stage. Traceability  should be maintained across the value chain to build trust, identity issues if any and prevent contamination. .

IBT: To address these challenges, how do you see technologies like AI, blockchain, or IoT transforming global supply chains and addressing concerns such as sustainability and traceability?

Dr. Arpita Mukherjee: Technology is only one component of traceability. The primary step is to establish robust processes—farmers need to maintain records of pesticide and insecticide usage, conduct laboratory tests, do soil testing, ensure that right quality of inputs is used, etc. Once these systematic processes are in place, technology can help maintain and verify the process and help to identify the issues. However, expecting farmers to implement AI, blockchain, or IoT themselves is unrealistic. The technology must be simple and user-friendly.

Blockchain, for instance, is only used in high-risk food categories in Europe, such as animal feed and cattle disease monitoring. It’s impractical to apply blockchain across all agricultural products. A significant challenge is the fragmented monitoring of value chains which makes the compliance process fragmented. For example,  turmeric is  fresh and organic turmeric is under  APEDA’s jurisdiction for exports but turmeric power is under  Spice Board India.  Different agencies have different compliance requirements and different laboratories are listed under them.  These  leads to gaps in monitoring and enforcement. Before implementing advanced technologies, we need a unified authorities and streamline their compliance requirements throughout the  entire value chain.

IBT: As we face new challenges like the EU’s CBAM regulations and the need to lower emissions, how can businesses reduce greenhouse gas emissions while ensuring product viability, particularly in agriculture and transportation?

Dr. Arpita Mukherjee: Emissions vary by product type and supply chain complexity. In case of agriculture in India, a major challenge is working with small-scale farmers who own two or three cattle—how do businesses measure their emissions ? Some countries like Bhutan has successfully implemented small-scale manure management programmes, which India could consider looking at.

Stubble burning is another pressing issue. Farmers opt for the cheapest disposal methods, making it difficult for businesses to impose any measures. India need to develop cost effective methods and infrastructure that utilizes food waste and residue efficiently. Businesses must analyse where emissions occur in their supply chain—whether it is from food waste, excess residue, or inefficient logistics—and find solutions tailored to each segment of the supply chain.

Additionally, businesses must align with country-specific regulatory requirements to ensure compliance. For food, the key priority is reducing maximum residue limits (MRLs) and using byproducts effectively. Unlike steel, where CBAM applies directly to emissions, food sustainability efforts require holistic approaches, including responsible sourcing, minimal chemical use, and waste reduction.

IBT: Do you think there should be different emission criteria for different industries?

Dr. Arpita Mukherjee: Different industries already have distinct emission criteria. In beverages, for instance, significant water waste occurs during manufacturing, but many companies are now implementing water recycling. Similarly, food waste and skins of fruits while in juice production can be repurposed in the cosmetics industry.

An inter-industry approach is essential. Food waste, much like textile waste, can have various applications across different industries. Businesses must identify where they fit in the value chain and adopt emission-reduction strategies accordingly, while also leveraging government support to develop sustainable solutions.

IBT: How can India leverage its Free Trade Agreements (FTAs) to address trade barriers and strengthen logistics and supply chain infrastructure?

Dr. Arpita Mukherjee: FTAs offer significant opportunities, but preparation is key. A well-prepared domestic strategy is crucial before entering trade agreements. For example, India recently lost its unilateral organic certification due to a lack of a standardized organic framework. Currently, multiple organic certification systems exist—Jaivik Bharat, PGS, and APEDA’s third-party certification—causing fragmentation. APEDA can take the lead in establishing a unified system for organic certification.

Additionally, India needs a comprehensive framework covering both exports and imports to secure mutual recognition agreements (MRAs) in products like organic with key partners. Taiwan, for example, signed an MRA with APEDA easily because it operates outside of government agreements. However, major markets like the US require government-level agreements. The lack of a single nodal agency for various export categories further complicates negotiations. One  part of the spices value chain are under APEDA, while the other part is under the Spices Board, and some spices are also regulated by EIC. A streamlined export control agencies and processes is necessary.

Businesses must also stay updated on market trends and regulatory changes. Turmeric, for example, has recently gained global visibility, and Indian businesses must capitalize on this by creating high-value turmeric-based products. Missing an opportunity means losing market share, so businesses must be proactive in securing their supply chains and look for opportunities to create value added products.

Moreover, businesses should avoid over-reliance on a single export market. Given global uncertainties— diversification of markets is essential. Companies should expand their market reach, move up the value chain, and align with evolving consumer preferences.

IBT: Finally, what do you see as the most significant emerging threats to global trade and supply chains over the next decade, and how should businesses prepare to navigate these challenges?

Dr. Arpita Mukherjee: Global trade will always be subject to uncertainties. One way to mitigate risks is through strong trade agreements. For instance, US protectionist policies affect many countries but not Vietnam, which has a bilateral trade agreement with the US. However, this may change with the US now targeting FTA partners like Canada and Mexico. 

At the same time, weak trade agreements offer little protection. Sustainability is another challenge—while businesses must strive for greener operations, they also need regulatory commitments to shield them from future trade barriers.

India, for example, often seeks market access while maintaining high tariffs at home, arguing that it must protect its poor farmers. However, this argument doesn’t always hold, as other countries like Cambodia face similar challenges. Instead, businesses should guide trade negotiators to take sector-specific commitments that offer long-term benefits and regulatory certainty. Addressing non-tariff barriers is very important for the success of the trade agreements and to give business a predictable trade regime. 

Ultimately, businesses must be proactive in policy discussions, adopt best practices, and diversify their markets to navigate the evolving global trade landscape successfully.