Hidden Cost

• India's agri-food systems have a hidden cost of about $1.3 trillion per year, which is mainly caused by unhealthy dietary patterns; high consumption of processed foods and additives and low consumption of plant whole foods and beneficial fatty acids.  
• More than 73% of the hidden cost is due to unhealthy dietary patterns, which is linked to noncommunicable diseases (NCDs) such as heart disease, stroke, and diabetes. 
  • • These diseases increase the healthcare burden and decrease productivity, resulting in significant hidden costs.
• The report identified 13 dietary risk factors, including a lack of whole grains, fruits, and vegetables, high sodium consumption, and a high intake of red and processed meats. 

Method used to Calculate hidden Costs

• The FAO report calculated hidden costs by using the "true cost accounting" method. This approach includes costs and benefits that are not reflected in market prices, such as environmental damage, social inequalities, and health consequences of dietary patterns.

Global Comparison 

• India's hidden costs of agrifood systems are the world's third largest, after China ($1.8 trillion) and the United States ($1.4 trillion).
• Unhealthy dietary patterns are the leading contributor to hidden costs worldwide, accounting for about 70% ($8.1 trillion) of total hidden costs in agrifood systems.

Recommendations in the report

• To provide financial and regulatory incentives to encourage sustainable practices and address power imbalances in agrifood systems.
• To encourage healthier eating habits through policies that make nutritious food more affordable and accessible.
• To support labeling and certification to reduce greenhouse gas emissions and environmental harm.
• To provide information to consumers about the environmental, social, and health implications of their food choices, and ensure that vulnerable households benefit from these transformations.

PRACTICE QUESTION

Q.Consider the following statements in the context of the Food and Agriculture Organization (FAO):

1. It is a United Nations specialized agency that coordinates global efforts to combat hunger.

2. The headquarters of FAO is located in New York, USA.

Which of the above statements is/are correct?

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Answer: A

Explanation:

Statement 1 is correct:

The Food and Agriculture Organization of the United Nations (FAO) is a United Nations specialized agency that coordinates global efforts to combat hunger, improve nutrition, and ensure food security. It was founded on October 16, 1945.

Statement 2 is incorrect:

The FAO has 195 members, including 194 countries and the EU. Its headquarters are in Rome, Italy, and it has regional and field offices in more than 130 countries. It enables governments and development organizations to better coordinate their efforts to improve and develop agriculture, forestry, fisheries, and land and water resources.