Why in NEWS?
The OECD–FAO Agricultural Outlook 2025–2034 offers a 10-year forecast on global agriculture and fish markets, highlighting productivity, consumption trends, biofuel demand, and food security challenges for policymakers.
Key Terms and Concepts
| Term | Explanation |
|---|---|
| OECD | Intergovernmental economic body (1961), Paris HQ, 38 members. |
| FAO | UN agency (1945), Rome HQ, works on food, agriculture, and hunger. |
| 1G/2G/3G Biofuels | Generations of biofuels: from food crops, residues, and algae respectively. |
| E20 Target | Policy to blend 20% ethanol with petrol. |
| GHG Emissions | Greenhouse gases released due to agricultural activities. |
Global Market Trends (2025–2034)
| Aspect | Key Projections |
|---|---|
| Cereal Production | 1.1% annual growth, driven by yields. |
| Use of Cereals | 40% for food, 33% for animal feed, 27% for biofuels/industry. |
| Biofuel Demand | To grow at 0.9% annually (Brazil, India, Indonesia). |
| Agri + Fish Production | To rise by 14%, but adds 6% GHG emissions. |
| Animal Product Consumption | Calorie intake from livestock/fish to rise 6% globally; 24% rise in lower-middle-income countries. |
| Regional Trends | India & Southeast Asia to drive 39% of cereal demand growth. China’s share to drop from 32% to 13%. |
Impact of Rising Biofuel Demand on Food Security
| Concern | Effect |
|---|---|
| Land Diversion | India’s E20 needs 7.1M ha → less land for food crops. |
| Water & Inputs | Biofuel crops need high water & fertilizers (8–12L water/L ethanol). |
| Food Inflation | Higher feedstock demand raises food prices (e.g. 14.5% rice price rise in India in 2023). |
| Access & Affordability | Poorer nations hit harder by reduced food availability. |
| Environmental Risks | Deforestation & biodiversity loss linked to large-scale biofuel farming. |
Solutions for Sustainable Biofuel and Food Security Policies
| Strategy | Description |
|---|---|
| Feedstock Diversification | Promote 3G ethanol (from algae/wastewater); explore GM biofuel crops. |
| Zoning & Land Use | Restrict biofuel crops to marginal lands with ecological safeguards. |
| Crop Diversification | Boost MSP for diverse grains; avoid monocultures; align ethanol procurement with surplus seasons. |
| Productivity + Emission Cuts | 15% productivity increase + tech adoption = 7% drop in GHG & eradication of undernourishment. |
About the Organizations
| Organization | Role |
|---|---|
| OECD | Promotes economic growth & policy advice; India = key partner. |
| FAO | Leads global agriculture, food security & nutrition programs; produces key reports (SOFA, SOFI, SOFO, SOFIA). |
In a Nutshell
Mnemonic: B-I-O-F-U-E-L
Balancing growth, Inclusive policies, Optimal land use, Food security focus,
Use of 3G tech, Emission reduction, Long-term sustainability
Prelims Questions
- What percentage of global cereal production is projected to be used for biofuels and industrial purposes by 2034?
a) 14%
b) 27%
c) 33%
d) 40% - The E20 target in India is associated with which of the following?
a) 20% rice self-sufficiency
b) 20% ethanol blending with petrol
c) 20% agricultural GDP growth
d) None of the above - Which of the following is considered a 3rd Generation (3G) biofuel source?
a) Sugarcane
b) Crop residue
c) Microalgae
d) Palm oil
Mains Questions
- “Biofuels provide a renewable energy source, but can compromise food security.” Discuss this paradox with reference to India. 10 Marks
- Evaluate the key challenges and solutions presented in the OECD–FAO Agricultural Outlook 2025–2034 report regarding sustainable agriculture and food security. 15 marks
Answer Key (Prelims)
| Q.No | Answer | Explanation |
|---|---|---|
| 1 | b) 27% | 27% of cereal production is expected to go toward biofuels and industrial uses. |
| 2 | b) 20% ethanol blending with petrol | E20 target aims to blend 20% ethanol with petrol by 2025. |
| 3 | c) Microalgae | 3G biofuels are derived from non-food sources like algae. |
