We are into a period of global food shortage and rise in food prices which were not anticipated even a few years ago. A steeply rising food import bill in the medium term could well be on the cards. This is likely to put a severe strain on the Indian government's efforts to reduce poverty and more equitably distribute the economic gains of the last four years. But this challenge can be turned into an opportunity and gives the country's policy makers a chance to address and partially solve the related problems of low agricultural growth and stubborn poverty in rural areas. The challenge and opportunity are both contained in a comparison with China. Though India has 1.47 times more arable land than China, the latter uses its land much better. Its cereal yield is 2.18 times India's. If Indian farm productivity and incomes can be dramatically raised, both global poverty and food shortage will be partially mitigated. To meet the challenge, absolutely the first task is to improve water management