Foreign investment in agriculture


Despite natural benefits, agriculture continues to languish for need of adequate investment and policy support. The case for reviving agriculture to meet the rising food needs of countries having huge population. The global food price crisis of last year highlighted the requirement to boost farm production and productivity through higher investment. The need to broden FDI flows in the agricultural sector has been gaining importance from last year. Recent Unctad World Investment Report has made out a cautious case for entry of transnational corporations with FDI. The report states that the stimulus is crucial for increasing productive capacity and farm output in the poorer countries. These investment inflows fall far short of their potential, the agency suggests developing a set of internationally agreed core principles for large-scale acquisition of agricultural land by foreign investors.
There is consensus among experts that one of the lingering effects of the price crisis on the world food system is the rapid and widespread acquisition of farmland in developing countries by other countries seeking to ensure their food supplies. While such acquisitions may insert required investment into rural areas in low-growth agrarian economies, they also raise concerns about the impact on the local resident, who risk losing access over land on which their livelihoods depend. It is difficult to ensure that these land deals are designed in a manner that will secure the living of local resident.

This entry was written by , posted on September 23, 2009 at 7:33 pm, filed under Real Estate Investment and tagged , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post. Trackbacks are closed, but you can post a comment.

One Comment

  1. Rajesh
    Posted December 3, 2009 at 9:12 pm | Permalink

    I have big land at near Kalyan having potencial to grow any thing and also having water.Looking for a profiteble project.

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