Though prices of some agricultural commodities have started to weaken in the global markets, but still they are nowhere near their pre-2008 lows. The scene is no different in India, where food prices have caused hole in middle class pockets. Shenggen Fan, director-general, International Food Policy Research Institute (IFPRI)?a global body working on sustainable solutions to end hunger and poverty, says the rise in food prices is not yet a thing of the past. In an interview with FE?s Shishir Behera, Fan, shares his view on GM crops and steps to optimise agricultural potential of the country. Excerpts:

What are the global trends in food prices?

Global food prices began to rise right after 2005 and reached their peak in April 2008. However, prices have declined since then. Recently, a rebound in prices is being seen again, but it has not reached its peak. For me, the crisis of rising food prices is not over yet?it may hit us again.

Is the fact that India is not exporting rice and wheat affecting global food prices?

Global food prices have not being affected much by this. India had seen a rice shortage this year because of the drought and floods. Production has declined, but I don?t think India needs to import rice, since it has enough stock of rice and wheat.

Also, I don?t think India?s rice shortage would fuel another food crisis. Countries like China and US have better harvests. It is because of other factors?high oil prices and the conversion of grains to bio-fuel?that may fuel a rise in global food prices.

Considering factors like falling acreage, urbanisation and unavailability of modern technology, what should be the focus of India?s food policy to meet growing demand?

It is clear that demand for food in India has increased not only in terms of quantity but also quality and it will continue to grow with the rise in population. Those people living in cities demand quality. The demand for both quality and quantity of food will go up. This creates a pressure on India to meet its food supply demand. I think Indian government really needs to increase investments in agriculture to optimise productivity, particularly of small holders, not only for seasonal crops like rice and wheat but also for fisheries, livestock, vegetable and fruits.

Also, the Budget allocation needs to change. The government needs to set the right balance between productive investment and subsidies in electricity, fertilisers, water and other essential factors to encourage farmers.

There is a growing tendency of the Indian farmers shifting focus to social schemes like NREGA. What you think should be done to retain their interest in agriculture?

I think NREGA and similar schemes help the rural poor access jobs and increase incomes to some extent. But the question is how can we help them in increasing agricultural productions? Human capital is very critical.

This deserves more thinking and analysis. Employment opportunities should be combined with agricultural productivity to promote agricultural production so that farmers can access non-farming activity.

What are the viable pro-poor strategies in cultivation which India can adopt?

Some of the practices that small holders can use are small irrigation, equipment and pumps. Make small investment, credit, finance available to farmers to adopt technologies and access markets. We need to design technologies, credit services, extension services and market services for them.

Recently, there were protests against the commercial production of Bt brinjal in India . What is your view on GM crops?

The debate has to be supported by scientific evidence. It is clear that adoption of Bt brinjal will benefit farmers and producers, particularly poor producers and consumers. But it could also have potential environmental health risks. We need to communicate this evidence to both consumers and farmers because they are the ones who have to make a choice between the remote potential risks and immediate economic benefits.