Surabhi Mittal and Deepti Sethi
1. Definition of Food Security
Food security is a complex issue and its definition has
evolved over time. The question of food security has a number of dimensions
that go beyond production, availability and demand for food. The initial focus
on food security as a global concern was on the volume and stability of food
supplies. In the 1974 World Food Summit, food security was defined as
“availability at all times of adequate world food supplies of basic foodstuffs
to sustain a steady expansion of food consumption and to offset fluctuations in
production and prices”. In 1983, FAO expanded its concept to include vulnerable
people securing access to available supplies, stating that food security meant
“ensuring that all people at all times have both physical and economic access
to the basic food that they need.” Later, the 1996 World Food Summit redefined
food security to take demand, vulnerability and nutritional aspects into
account. At the summit, countries agreed that “food security exists when all
people, at all times, have physical and economic access to sufficient, safe and
nutritious food to meet their dietary needs and food preferences for an active
and healthy lifestyle”. In 2002, an FAO Expert Consultation on food security
gave a working definition of food security: Food security exists when all
people, at all times, have physical, social and economic access to sufficient,
safe and nutritious food which meets their dietary needs and food preferences
for an active and healthy life. Household food security is the application of
this concept to the family level, with individuals within households as the
focus of concern (FAO 2002 Ch.2). Since then, several definitions have been
provided by different organisations such as the World Bank, FAO and UNDP’s Human
Development Report. In general, food security is defined as economic access to
food along with food production and food availability. Food availability alone,
therefore, does not ensure food security; access to food is equally important.
An FAO report, August 2008, defines food security in terms
of the following four key aspects:
• Food Availability – Sufficient
availability of food with the nation through domestic production, net imports
(commercial or food aid) and carry-over of stocks.
• Food Access – Individual’s capability
to purchase food and to be able to procure food through safety nets or
availability.
• Food Utilisation – Consumption of food
by the household in a proper form. It also takes into account food preparation,
storage and utilisation, food safety, nutritional safety and dietary balance.
• Food Vulnerability- Vulnerability of
the population to food insecurity due to physiological, economic, social or
political reasons.
2. Issues under Food Security
South Asian countries have seen high annual economic growth
rate, but relatively low growth rates in agriculture during the period
1993-2006 (fig 1). These countries also witnessed an increased, high level of
growth in food consumption, primarily due to high population growth (fig 2).
Figure 1: Average Annual Rate of Growth,
1993-2006
However, despite the high growth rate in food consumption,
the region has the highest concentration of the poor and undernoursihed (299
million in 2003 – WDR 2008) and accounts for 40 per cent of the world’s hungry.
An annual 1.7 per cent reduction in the prevalence of under-nourishment in the
past decade has hardly made a dent in the absolute numbers of the
under-nourished, something that remains a major cause of concern. (Fig. 3 and Table 1).
The Agriculture Development Report 2008 ranked South Asia as
the second most undernourished, malnourished and food insecure region in the
world. The FAO estimates indicate that, by 2010, Asia will still account for
about one-half of the world’s malnourished population, of which two-thirds will
be from South Asia. The food security indicators for South Asia are presented
in Table 1. These show the poor state of food security in these economies.
Table 1: Food Security Indicators in South Asia
Indicators
|
Bangladesh
|
India
|
Maldives
|
Nepal
|
Pakistan
|
Sri Lanka
|
2002-04
|
2002-04
|
2002-04
|
2002-04
|
2002-04
|
2002-04
|
|
Population (million)
|
146.7
|
1065.4
|
0.32
|
25.2
|
153.6
|
19.1
|
Food Supply
(kcal/person/day)
|
2200
|
2470
|
2600
|
2430
|
2320
|
2390
|
Number of undernourished
(million)
|
44
|
209.5
|
31.9
|
4.4
|
37.5
|
4.2
|
Proportion of
under-nourishment (%)
|
30
|
20
|
10
|
17
|
24
|
22
|
Dietary energy consumption
(kcal/person/day)
|
2200
|
2440
|
2560
|
2450
|
2340
|
2390
|
2000
|
2000
|
1996
|
1999
|
1996
|
||
National (Poverty headcount, (% of
population))
|
49.8
|
28.6
|
-
|
42
|
32.6
|
25
|
Rural (Poverty headcount, (% of
population))
|
53
|
30.2
|
-
|
44
|
35.9
|
27
|
Urban (Poverty headcount, (%) of
population))
|
36.6
|
24.7
|
-
|
23
|
24.2
|
15
|
2000
|
1999-00
|
1995-96
|
1998-99
|
1995
|
||
Gini of income (%)
|
32
|
33
|
-
|
37
|
33
|
34
|
1981-82
|
1990
|
1995
|
1995
|
1988
|
1986
|
|
Gini of dietary energy consumption (%)
|
18
|
18
|
14*
|
15*
|
18
|
16
|
Source: FAO
4
Apart from the endemic poverty and poor nutritional status
of South Asian countries, there are signs of deterioration in the agricultural
sector of the region. This has added to the pressures on food supply and hence,
worsened the food security scenario. As seen in Table 2, the agricultural
sector’s contribution to GDP in 2006 was very low as was the growth rate for
the sector that year. The declining contribution of agriculture to GDP has to
be seen in the context of increasing agricultural population density (defined
as the agricultural population per hectare of arable land under permanent
crops) in all countries except Bhutan and Maldives (Table 3).
Table 2: Status of Agricultural Sector in South Asia
Countries
|
Value added as % of GDP in
agriculture, 2006
|
Agriculture growth rate (annual % growth, 2006)
|
Employment in agriculture (% of total
employment)
|
Afghanistan
|
36
|
-
|
-
|
Bangladesh
|
20
|
4.94
|
51.70 (2003)
|
Bhutan
|
22
|
1.67
|
-
|
India
|
18
|
2.68
|
52.00 (2007)
|
Maldives
|
-
|
-0.65
|
17.30 (2003)
|
Nepal
|
34
|
1.19
|
66.40 (2001)
|
Pakistan
|
19
|
1.58
|
43.00 (2005)
|
Sri Lanka
|
16
|
4.71
|
33.50 (2004)
|
Source: World Development
Indicators, 2008
Table 3: Change in Agricultural Sector
Countries
|
Agricultural Population density
|
Per centage share of agriculture in GDP
|
||||
1990-92
|
199597
|
200305
|
1990-92
|
1995-97
|
2003-05
|
|
Afghanistan
|
1.2
|
1.6
|
2.0
|
-
|
-
|
40.61
|
Bangladesh
|
8.3
|
9.4
|
9.3
|
30.00
|
25.95
|
20.98
|
Bhutan
|
2.7
|
2.2
|
2.3
|
35.38
|
32.52
|
24.93
|
India
|
3.0
|
3.2
|
3.4
|
29.31
|
26.66
|
19.34
|
Maldives
|
10.3
|
9.9
|
5.2
|
-
|
-
|
-
|
Nepal
|
6.7
|
7.5
|
8.7
|
48.72
|
41.57
|
36.36
|
Pakistan
|
3.1
|
3.2
|
3.4
|
26.03
|
26.11
|
22.34
|
Sri Lanka
|
4.5
|
4.6
|
4.5
|
26.31
|
22.44
|
18.04
|
Note: Agriculture population
density- Agricultural Population per Hectare of Arable &
Permanent crops Land (
persons/ha)
Source: FAO, 2009 and WDI,
2008
Compounding problems on the food security front are other
factors such as declining productivity as reflected in the annual growth rate
of yield for cereals and the diversion of land for the production non-cereal
commodities whose demand has increased with changes in the consumption pattern
(Table 4). Yield for cereals has been on a constant decline in most of the
countries and in some of them, the growth is even negative. South Asian
countries have consequently witnessed a sharp rise in the prices[2] of rice
and wheat (figure 4), posing a threat to the poor and vulnerable sections of
the population in these countries.
Table 4: Average Annual Rate of Growth of Yields of
Cereals in South Asian Countries
Countries
|
1981-85
|
1986-
90
|
1991-95
|
1996-00
|
2001-05
|
Afghanistan
|
-0.07
|
-2.71
|
0.12
|
-8.15
|
-
|
Bangladesh
|
2.77
|
4.33
|
-0.53
|
6.25
|
2.28
|
Bhutan
|
-1.02
|
-5.47
|
6.21
|
-0.85
|
-
|
India
|
4.17
|
5.59
|
2.3
|
1.39
|
0.63
|
Nepal
|
1.38
|
5.92
|
0.73
|
2.57
|
1.91
|
Pakistan
|
-1.41
|
0.15
|
2.26
|
4.14
|
3.98
|
Sri Lanka
|
2.58
|
-0.57
|
0.66
|
2.26
|
0.70
|
Source: Self computed from
FAO data
The productive potential of South Asia’s rich geographical
diversity holds promise in so far as its ability to mitigate these threats is
concerned. But lack of political will, poor infrastructure, lack of appropriate
policy frameworks, low level of regional integration and severe bilateral
conflicts have severely impeded efforts to achieve food security in the region.
The other issue that needs special attention is the likely
impact of climate change on agricultural productivity in South Asia and other
parts of the world. The South Asian region is highly sensitive to the
consequences of climate change[3] and is
known to be the most disaster prone region in the world. Purdue University’s
Climate Change Research Centre has shown that global warming could delay the
start of the summer monsoon by five to 15 days within the next century and
significantly reduce rainfall in much of South Asia. Rising global temperatures
are likely lead to an eastward shift in monsoon circulation which could result
in more rainfall over the Indian Ocean, Myanmar and Bangladesh but less over
Pakistan, India and Nepal.
The fourth assessment report[4]
of the Intergovernmental Panel on Climate Change lists the consequences of
climate change for the South Asian region. The melting of the Himalayan
glaciers will lead to increased flooding and affect water resources within the
next two to three decades. Crop yields could decrease by up to 30% in South
Asia by the mid-21st century. This could hamper the achievement of many of the
Millennium Development Goals (MDGs), including that of poverty eradication.
Climate change is expected to have severe socio-economic
implications for South Asia. As three-fifth of the cropped area is rain fed,
the economy of South Asia hinges critically on the annual success of the
monsoons. In the event of a failure, the worst affected are the landless and
the poor whose sole source of income is from agriculture and allied
activities.
The HDR, 2006, has pointed out that in South Asia alone, 2.5
billion people will be affected by water stress and scarcity by the year
2050. A rise in temperature will
negatively impact rice and wheat yields in the tropical parts of South Asia
where these crops are already being grown close to their temperature tolerance
threshold. While the direct consequences of climate change are associated with
rise in temperatures, the indirect impact will be felt in terms of water
availability, changing status of soil moisture, and pest and disease incidence.
The worst hit by these changes are likely to be farmers with
small holdings in rain fed areas who constitute a majority of the farmers in
this region and whose financial and technical capacity to adapt to climate
variability and change is low. Landholdings are already very small due to large
family sizes in this region. In the region’s hilly parts, holdings are also
fragmented, preventing farmers from reaping economies of scale. Some of the
impact assessments for South Asian countries done in recent papers are
presented in the Appendix, Table 1.
One of the most important areas in which bold initiatives
need to be taken to achieve food security is intra-regional trade. SAARC
nations need to define the role of regional trade as well as trade with
non-SAARC nations. Issues that need to be addressed include the development of
joint trade strategies, greater inter-regional trade, restriction in trade policies
such as non-tariff barriers and trade facilitation measures that would help the
smooth movement of food grains from surplus to deficit countries.
This paper takes a look at the policies and safety nets that
each country of the SAARC region has adopted to ensure country-level food
security and their efficacy before discussing the role of trade and the
development of the SAARC food bank to ensure regional food security. It also
proposes a way forward to achieve food security in the region.
3. Safety-net programmes - country
policies
Household food security in many instances is more about
income security than just the availability of food. It is the inability of the
households to purchase food or have access to the physical storage of food,
which leads to the household’s food insecurity. In order to increase food
availability, various macro policies and safety-net programmes such as building
buffer stocks and controlling prices have been implemented in the countries of
South Asia. Since food-based safety-net programmes are effective only if
individuals have access to these facilities and many households do not have the
income to buy food, some countries have introduced income based or employment
generating programmes along with price control and distributive measures. Many
South Asian countries have direct cash transfers too. The number of programmes,
their magnitude, reaches and target population vary from country to country and
also within the country. Some of the major safety nets of the South Asian
countries that are directly or indirectly linked to the goal of food security
are discussed below.
3.1 Afghanistan: The state of political and economic affairs is
highly complicated in Afghanistan. Population is extremely vulnerable to food
insecurity; the social, physical and political infrastructure does not provide
bankable support to food security interventions and investments by the
international community. The country’s agricultural sector is also under
extreme pressure. Farmers receive little professional guidance and limited
opportunities for development of farming activities. Furthermore, employment
opportunities are not increasing which could provide secure livelihood to a
large segment of population especially in the rural areas. In this regard,
there is a need for taking concrete steps to solve the problem of food
insecurity. The National Risk and Vulnerability Assessment conducted in 2005
(NRVA 2005) by the Ministry of Rural Rehabilitation and Development together
with the Central Statistic Office, Government of Afghanistan found that
approximately 61 per cent of the Afghan population experienced low dietary
diversity and poor to very poor food consumption. Around 30 per cent of the
population does not get the minimum food requirements and is food insecure.
Twenty per cent of the population suffers from chronic food insecurity. NRVA
2005 summarises food insecurity in Afghanistan as follows: “At the household
level, food insecurity in Afghanistan is largely caused by inadequate access to
food resulting from low household incomes.” The 2006 drought affected rain-fed
wheat and resulted in a reduction of yield in most regions, further increasing
food insecurity. In 2007, 6.5 million people faced food insecurity in
Afghanistan according to the FAO.
The incidence of food insecurity has been increasing over
time and in 2008, was further aggravated by a sharp price rise. Global food
prices were a great cause of concern in 2008 with millions affected as the
prices of staple foods rose, and remained higher than in previous years.
Afghanistan used to be a major exporter of fresh and dry
fruits, but conflict and political disturbances destroyed orchards. Although
international development agencies are helping the Afghans rebuild their
orchards, both time and resources are needed for production to become
sustainable. One of the necessary conditions for rebuilding public and private
assets for food security is to improve the security situation across
Afghanistan.
Various international development agencies have been working
to achieve food security in the country. This includes a substantial amount of
food aid. A bulk of the relief assistance that reached households in
Afghanistan has been in the form of food. Where food aid commodities reached,
they saved lives, discouraged migration and protected families from further
indebtedness. Most of the aid was distributed in areas identified by the World
Food Programme’s Vulnerability Assessment.
The largest food aid programme in Afghanistan, the World Food
Programme, extended from January 1, 2006 to December 31, 2008. The initial
programme design aimed at covering 6.6 million beneficiaries over the three
years with a target of 4.7 million beneficiaries in 2006. The current aim is to provide 1,010,000 tonnes
of food aid to 11.2 million Afghans between January 2006 and December 2009 at a
cost of US$ 848 million. On average, WFP will distribute food to 3.7 million
people each year, primarily in remote, food-insecure rural areas. WFP will
target chronically poor and food-insecure families, school children, teachers,
illiterate people, tuberculosis patients and their families, internally
displaced persons and ex-combatants – with particular emphasis on the
vulnerable group of women and girls. This programme is multi-faceted and
targets food insecure areas with a number of activities, including Food for
Work, Food for Training, and Food for Education, and is implemented in
partnership with the Afghan government, non-government partners and
communities.
Apart from the aid from the World Food Programme, the
European Commission Humanitarian Aid Office has also arranged various food aid
programmes in Afghanistan, beginning with a food aid programme valued at 6
million Euros per year in October, 2007. The Government of Afghanistan was
provided with 8,700 tonnes of vegetable oil in 2006 and 8,200 tonnes in 2007
under a US Department of Agriculture (USDA)-supported Title I-funded Food for
Progress Programme. USDA is also providing technical assistance for the reconstruction
of Afghanistan’s agricultural sector. Mercy Corps has monetised Food for
Progress vegetable oil, including 2,000 tonnes of vegetable oil in 2005 and
10,000 tonnes of soybean oil in 2006. The proceeds from the sale of the
commodities are being used to finance agribusiness, horticulture, and animal
husbandry projects besides health activities in six provinces of Afghanistan.
World Vision is implementing a USDA-supported multi-year McGovern-Dole
International Child Nutrition (Food for Education) Programme in the province of
Hirat.
According to the Afghanistan Food Security Monitoring
Bulletin (AFSMB), August 2007, attention needs to be given to improving the
selection criteria of food and the time of requirement of a particular food
item at the local level and orienting the food for work programmes closely with
the cycle of labour demand for agricultural activities Steps were also
initiated to strengthen the dialogue among implementing partners and local
authorities on the programme selection and implementation process.
3.2. Bangladesh: The Government of Bangladesh has, over the
past three and a half decades, introduced reform measures and policies for
agricultural development in its quest for food security for all. In the 1970s
and early 1980s, Bangladesh pursued a policy of agricultural modernisation by
supplying modern agricultural inputs (seed, fertiliser and irrigation) and
technology (HYVs and machinery) through government agencies and parastatal
organisations like the Bangladesh Agricultural Development Corporation (BADC),
and Bangladesh Water Development Board (BWDB).
The government liberalised the seed market, allowed import of improved
germplasm for research and development and developed its own facilities for
producing foundation seeds (except for five notified crops - rice, wheat,
sugarcane, potato and jute) through the Seed Policy Act of 1992 and 1998. It
also encouraged the involvement of the private sector and NGOs in the seed
delivery system.
More recently, the newly elected government has decided to
extend fertiliser subsidy to fertilisers other than urea in a bid to promote
balanced fertiliser use. Earlier, while the government procured and marketed
urea at administered prices, the marketing of phosphoric, potassic and other
fertilisers was left to the private sector. This resulted in a disproportionate
rise in the prices of these, leading to imbalanced use of fertilisers.
During this period, the Bangladesh government also took a
series of measures to expand its irrigation network. Minor irrigation systems
have been developed in the country at a rapid pace. To promote the use of
irrigation facilities, electricity for irrigation purposes is subsidised. In
the 1970s and early 1980s, irrigation was promoted through public agencies,
but, since the mid-1980s, the government began to involve the private sector
too.
Output market-related interventions were made by the
government through the domestic procurement of rice and wheat, distribution of
food grains through the public food grain distribution system, and through
tariffs on imported rice and wheat. Domestic procurement of both rice and wheat
is made by the government with a view to providing support to farmers and to
procure quantity of food grains required to support the public food grain
distribution system. The government distributes rice and wheat under the Public
Food grain Distribution System (PFDS) both through monetised channels like
Essential Priority (EP), Other Priority (OP), Large Employee Industries (LEI),
Flour Mill (FM), Open Market Sales (OMS), and Fair Price Card (FPC) and
non-monetised (targeted) channels like Food for Work (FFW), Test Relief (TR),
Gratuitous Relief (GR), Vulnerable Group Development (VGD), Vulnerable Group
Feeding (VGF), Food for Education (FFE) and other relief channels.
To ease the deficit in food availability from domestic
production, import of agricultural commodities was liberalised and import
duties and para-tariffs on various food items were substantially reduced by
successive governments.
Bangladesh has also invested in agricultural research and
extension system. Until the mid-1990s, Bangladesh used to receive a large
amount of international funds for agricultural research through direct support
to the Bangladesh government and through the international projects of
International Rice Research Institute (IRRI) and International Maize and Wheat
Improvement Centre (CIMMYT). Since then, international support for agricultural
research, particularly for rice and wheat, has declined. Public investment for
agricultural research declined in the 2000s. In FY2007 and FY2008, government
allocated special funds for agricultural research but utilisation of the
allocated fund is constrained by procedural and institutional limitations.
Currently, a big project titled National Agricultural Technology Project (NATP)
is being implemented. The government has also encouraged private sector and NGO
participation in the development and promotion of HYVs and hybrid rice. Four
types of programmes are being implemented in 2009 - cash transfer programmes,
food security programmes, micro-credit programmes and, special funds and
development sector programmes.
3.3 Bhutan: Bhutan has initiated several agricultural, food and
trade policies to increase food production and ensure food security in the
country since the initiation of the first five-year plan in 1961. Since Bhutan
did not have the resources and technological know-how, several multilateral and
bilateral development agencies have supported Bhutan in achieving food
self–sufficiency. In 1983, the International Development Research Centre (IDRC)
and IRRI supported “Rice Farming Systems Research” to build Bhutan’s rice
research capabilities and this lead to a remarkable process in rice production.
The Bhutan government’s policy to increase food production
includes the sale of farm inputs such as seeds/seedlings, fertilisers and plant
protection chemicals through private commission agents appointed by the
concerned ministry. Subsidies on inputs, except those for promotional purposes,
do not exist anymore. However, the transportation of inputs is subsidised even
today to maintain cost uniformity throughout the country.
The government has been investing in the construction of
roads to improve rural connectivity, setting up of Renewable Natural Resources
(RNR) centres (120), research centres and in the training of ministry officials
and farmers to improve food security. Bhutan has also set up the Food
Corporation of Bhutan (FCB) to imports food to meet domestic demand. Besides,
under the FAO and the Netherlands Partnership Programme (FNNP), the government
chose rice, maize, citrus fruits and potatoes for pro-poor commodity chain
analysis to both improve food security and increase rural incomes.
The key policy directives to enhance food security in Bhutan
are to intensify and diversify production, to adopt an integrated approach to
nutrient and pest management and to achieve at least 70 per cent
self-sufficiency in food grains. Emphasis has been placed on developing and
promoting high-value, low-volume cash crops that offer comparative advantages
over other crops in capturing the off-season markets in India and neighbouring
countries; promoting the use and breeding of superior, healthy breeds of highly
productive livestock; placing a higher priority on conservation than on
commercial exploitation of forests and maintaining at least 60 per cent of the
country's area under forest cover.
3.4 India: India’s
initiatives to ensure food security for its citizens ranges from concerted
efforts to boost agricultural production to far-ranging market interventions
aimed at both income and price stabilisation. Besides, measures have been
introduced to improve the access to food of the really poor through public distribution
and income generating schemes.
One of the first interventions by the Indian government was
the passing of the Essential Commodities Act in 1955 to protect the poor from
the vagaries of the market. The act conferred on the government the power to
control production, supply and distribution of essential commodities to ensure
equitable distribution of food grains at fair prices.
In the mid-1960s, the government ushered in what has widely
come to be known as the ‘green revolution’ by encouraging the use of high
yielding varieties of seeds, expansion of irrigation networks and active
encouragement of the use of chemical fertilisers in a bid to boost the
productivity of Indian agriculture. Most of the agricultural subsidies such as
those for power and fertilisers were introduced to improve farmers’ access to
inputs that would help improve farm productivity.
One of the oldest initiatives taken by the Indian government
was the establishment of a public distribution system (PDS) with the objective
of making basic food grains available to all at affordable prices. It set up
the Food Corporation of India under an act of Parliament in 1964 to oversee its
implementation. The Corporation was entrusted with the task of both procuring
food grains at minimum support prices announced for 24 crops by the government
and regulating supply to ensure that prices remained stable by building a
buffer stock of food grains. In effect, the Corporation has been the main
instrument to implement the government’s income and price stabilisation
policies.
The TDPS has been plagued by poor administration and local resource
constraints. Despite this, it has proved largely effective in ensuring food
security both at the national and household levels. Several measures
have been proposed to make the scheme more effective. One that was mooted in
the Tenth Five-Year Plan was the issue of subsidy entitlement cards to eligible
households. The subsidy entitlement was to be based on family size and
composition. The cards would entitle the household to monthly food stamps from
prescribed distribution centres which could be encashed for food from any food
store at a subsidised rate. The proposal is now being implemented on a pilot
basis.
Besides the TPDS, the Indian government has also implemented
programmes for the benefit of more targeted groups. In 1975, it launched the
Integrated Child Development Scheme (ICDS) to provide nutrition and healthcare
services to children and pregnant women. The Antyodaya Anna Yojana (AAY), launched in 2000, sought to provide
affordable food to below poverty level (BPL) households. The objective of the
scheme was to make the TDPS more focused and targeted an identified 10 million
of the poorest of the poor in different states. Wheat and rice at subsidised
prices of Rs.2 and Rs.3 per kg respectively are provided to these households
under the scheme. State governments are expected to meet the distribution costs
of the programme.
Another scheme that addresses the nutritional requirements
of a specified target group is the mid-day meal scheme. The scheme was launched
in 1995 for the benefit of students in government run and aided primary schools
and in schools run by local bodies. Under the scheme, the government supplies
free food grains to schools in quantities determined on the basis of specific
nutritional requirements for a specified minimum number of days in a year.
In 2005, the government passed the National Rural Employment
Guarantee Act to improve the livelihood security of rural households by providing
them with guaranteed wage employment for a minimum number of days in a year.
Semi-skilled and unskilled workers living below the poverty line in rural areas
have been specifically targeted under the programme. Works undertaken in the
programme aim to create enduring assets in rural areas and include projects
such as land-levelling, bush clearing, deep ploughing, building of earthen
bunds, flood control works and horticulture. These contribute to improved farm
productivity and higher farm incomes.
The National Rural Employment Guarantee Scheme was preceded
by the National Food for Work Programme (NFFWP) which was implemented in 2004
in 150 of the most backward districts of the country. These were identified by
the Planning Commission in consultation with the Ministry of Rural Development
and state governments. The objective of the programme was to provide additional
resources apart from the resources available under the Sampoorna Grameen Rozgar Yojana (SGRY) to these backward districts
to generate supplementary wage employment and provide food-security through the
creation of need-based economic, social and community assets.
An important initiative towards food security was the launch
of the National Food Security Mission (2007) to increase the production of rice
by 10 million tons, wheat by 8 million tons and pulses by 2 million tons by the
end of the Eleventh Plan (201112). To ensure that previous mistakes in policy
formulation and implementation are not repeated, the Mission has put in place strong
monitoring and evaluation mechanisms that involve all implementing and line
departments. To begin with, a baseline survey will be conducted by the State
Department responsible for Economics & Statistics to assess productivity
levels and the resource endowments of selected beneficiary farmers. Local
Panchayati Raj Institutions are actively involved in the selection of
beneficiaries, implementing local initiatives in districts identified by the
mission and identifying priority areas for Mission interventions.
Grain Bank in Madhya
Pradesh (India)
In 2001, a self-help
group of women, farmers and youth came together to set up a grain bank in the
Betul district of Madhya Pradesh. The bank provided immediate access to food
during emergencies; reducing or eliminating the need to borrow from local
money lenders who charge usurious interest rates. Further, it reduced the
dependence of the village community on government supplied grain. This was
the origin of the grain bank scheme that today covers 30 villages with 700
households of which 618 households belong to the poorest section.
Each village community has
developed its own unique, independent and self-reliant system of managing
grain banks. The most notable feature of the scheme is that it is locally
controlled and managed with a high degree of community involvement. In almost
all villages, the borrower has to return the grain in kind, with the interest
also in kind, to ensure that the corpus is intact. It is compulsory for women
to make up 50 per cent of every grain bank committee. Usually, the committee
has five men and five women.
The community takes a collective decision regarding
distribution. Each individual family gets an equal share of grain. When the
villages build up surpluses, the food is either sold for cash, or distributed
in the village itself to prevent it from getting spoilt. The community also
takes decisions on the distribution of foodgrains and money to families in an
emergency. Interest rates, which are decided by community for both grain and
money borrowed, are much lower than that charged by moneylenders.
|
In 2007, the Indian government approved two initiatives –
the National Policy for Farmers and the Rashtriya Krishi Vikas Yojana – that
take a holistic approach to agricultural development. It also proposes to pass
a National Food Security Act in 2009 under which below poverty line (BPL
families) will be provided with 25 kgs. of grain a month at a subsidised price
of Rs.3 per kg.
3.5 Nepal: For the past 13 years, agricultural policy in Nepal
has been shaped by the Agricultural Perspective Plan (APP), which covers the
period 1995-2010. The APP strategy is to achieve economic growth and poverty
reduction objectives through accelerated growth of agriculture. Perhaps
reflecting the relative antiquity of the APP, food security receives scant
mention, and what discussion does exist is largely confined to the improved
access the poor will receive as a result of increased employment opportunities,
and the lower prices that are a spin-off of increased production and
efficiency.
The National Agricultural Policy (NAP) of 2004 added new
food access provisions for vulnerable groups which are more radical than those
of the APP. The interim constitution of Nepal 2006-07 recognised food
sovereignty as a fundamental human right. Consequently, the government has
approved a food security plan as part of the Three Year Interim Plan to ensure
the right to sustainable food security for all. Various aspects of food and
nutritional security are to be strengthened through proper conservation and
management of natural resources together with sustainable agricultural
production, equitable distribution, increased employment opportunities,
improved quality of food products and reduced vulnerability of the
disadvantaged (children, old people, those from occupational castes, women,
marginalised tribes and people living in inaccessible areas). The Food and
Nutrition Security Plan (FNSP) that was subsequently introduced (NPC 2007)
places emphasis on self-reliance, food safety, adequacy of nutrition and
improved food access. As a specific food security programme, Nepal Food
Corporation (NFC), a public sector organisation, has been distributing food to
the deficit hill and mountain areas, for which the government provides
transport subsidies. NFC cereals still do not necessarily reach the neediest
households in the districts.
Other targeted food assistance programmes are implemented by
the government with considerable financial and logistical support from donor
agencies including the World Food Programme (WFP). The various modes of
assistance include the following: provision of rural employment opportunities
to the poor through the Rural Community Infrastructure Works Programme (RCIW),
a food for education programme directed at improving the nutritional status of
and school enrolment and attendance by children, a mother and child health
initiative aimed at improving the health and nutritional status of pregnant
women, nursing mothers and their young children, and emergency assistance in
natural disasters.
3.6 Pakistan: Pakistan does not have any national food policy
except for a few food security policies at the regional level. There is a
plethora of food laws, mainly dealing with quality standards. Standards are
also not addressed properly and require a complete overhaul. The Pakistani
government neglected the issue of food security and just focused on measures to
increase production. Though production did increase, it was not sufficient to
meet the country’s consumption needs.
In Pakistan, procurement, handling, marketing, storage and
supplies are handled by the four provincial food departments and the national
agency, the Pakistan Agricultural Services and Supplies Corporation (PASSCO)
The Corporation was established in 1973 as a public limited company, fully
owned by the federal government and six public sector banks. The agency has
been entrusted with the tasks of procuring wheat and other agricultural
commodities, providing price support to farmers, ensuring adequate supplies in
deficit provinces/regions, intervening in the open market to stabilise prices
of agricultural commodities and, above all, maintaining strategic reserves to
meet any emergent situation. In 2006, the rated storage capacity with these
agencies (PASSCO and provincial food departments) was
4.34 million tons, of which 2.45 million tons was with the
Punjab Food department,
0.71 million tons with the Sindh Food Department, 0.16
million tons with the NWFP, 0.44 million tons with the Balochistan Food
Department, 0.45 million tons with PASSCO and about 0.13 million tons with
other agencies.
To assess the level of food security, the World Food
Programme (WFP) Pakistan, undertook a preliminary food security analysis in
1998[5] and,
again, in 2003 for rural Pakistan. The results showed a rural-urban divide in
terms of food security and the final results concluded that a "state of
food insecurity" prevailed in rural Pakistan. Even wheat surplus provinces
were found, in the net, to be food insecure in terms of availability because of
growing population pressure and the resultant rise in demand for food. It
recommended that a national food security strategy should be formulated. It
also recommended the integration of the institutional arrangements for
implementing the strategy with those for other socio-economic interventions
such as food availability and nutritional security at the national level. It
also stressed that initiatives such as poverty alleviation should go hand in
hand with those aiming at food security to make the development process
responsive to the needs of the people.
The 2007-08 food crisis pushed the government to revisit
food production and food security issues. In 2008, the Planning Commission of
Pakistan formulated a task force on food security to provide policy
recommendations to ensure food security. It was also asked to look into issues
regarding procurement, medium-term research priorities, water resources and
climate change.
Two major initiatives taken by the Pakistan government to
improve food access are the Benazir Income Support Programme (BISP) and the
Food Support Programme (FSP). BSP was initiated with an initial allocation of
Rs.34 billion (US $425 million approximately) for the year 2008-09. The
programme was initiated to partially offset the impact of inflation on the
purchasing power of the poor. Food prices have seen a sharp rise since 2005. In
the years 2005-07, inflation stood at almost 10% with food inflation in the
range of 13-15%. In 2007-08, the sharp rise in oil prices and primary products
in the international as well as domestic market resulted in double-digit
inflation, which almost halved people’s purchasing power. The programme aims at
covering almost 15% of the entire population, which constitutes 40% of the
population below the poverty line. A monthly payment of Rs.1000 per family
would increase the income of a family earning Rs.5000 by 20%. BISP will cover
all four provinces.
The food support programme (FSP) was launched in 2002-2003
targeting the poor to improve their living standard by providing them financial
support. A subsidy of Rs.2000 was given to around 1.25 million poor families in
two biannual instalments of Rs.1000 through post offices countrywide. The
government increased the rate of annual subsidy to Rs.2400 in 2003-04 and
further to Rs.3000 in 2005-06. The programme’s annual budget was increased from
Rs.4.38 billion to Rs.6 billion in 2007-2008 to cover a larger number of the
country’s poor.
3.7 Sri Lanka: There are three main food security-related
programmes in Sri Lanka targeted at special groups and the poor. These are
Samurdhi programme, Thriposha Programme and the mid-day meal programme in
schools. It is important to note that none of these are aimed specifically at
ensuring food security; these are food-based welfare programmes with objectives
that go beyond mere food security.
Sri Lanka’s largest welfare programme, the Samurdhi
programme, was launched in 1995 with the twin objectives of ensuring food security
and reducing poverty. The programme covers two million households. Eighty per
cent of its outlay is accounted for by a food stamp programme. Its biggest
drawback has been poor targeting of beneficiaries. Intended to cover a target
of 20 per cent of the population which is below the poverty line, the programme
actually covers half the total number of households in the country.
The Thriposha Programme focuses on the specific group of
mothers in low income groups with children below the age of one. It is
essentially a programme of food supplementation in which cereals, pulses and
micro-nutrients are distributed free among the target group. Despite its
sharply defined target population, this programme has also seen a considerable
part of the subsidy offered going to ineligible recipients. Apart from problems
of execution, the programme suffers from limited reach and inadequate
monitoring of the health of recipients. The school mid-day meal programme
targets children with the objective of improving school attendance and
children’s nutrition. The programme covers 500,000 children in 6,440 schools,
which have at least 30 per cent malnourished children.
3.8 Maldives: The main source of food security in the Maldives
is the fisheries sector. The Ministry of Fisheries, Agriculture, and Marine
Resources (MOFAMR) is responsible for the sustainable management and
development of fisheries, agriculture, and marine resources of the nation. One
of the most important initiatives towards achieving food security in Maldives
is the Hydroponics Agriculture Pilot Project taken up by MOFAMR in 2006. The
project aims to promote the development of hydroponics production systems (it
is a technique of growing plants without soil, in water containing nutrients)
both by households and on a commercial scale, to help the country achieve food
security as well as provide its citizens with an additional avenue of
employment and income generation. The project also aims to increase the
availability of high- quality horticultural products, which would improve
nutritional status. There is considerable emphasis on raising awareness of the
benefits of hydroponics among, and imparting training to, the young, especially
in rural islands.
In addition, following the tsunami in 2004, an assessment of
the food safety situation was undertaken to assist the Ministry of Health,
Government of Maldives. Various food- safety monitoring guidelines were
developed for food-processing units, resorts, hotels and
guesthouses, and port health authorities (food imports). These guidelines were
basically developed on the lines of “Good Manufacturing Practices” (GMP) and
“Good Hygiene Practices“ (GHP). Since the quality and safety of processed food
products depends on the raw material used, these guidelines lay considerable
stress on the assessment of “primary production” along with an assessment of
food processing facilities.
In order to meet household or individual level food security
in the country, the Department of Public Health organises food safety advocacy
sessions to create awareness among the population regarding food safety. The
government is considering the establishment of a National Food Safety Committee
(NFSC) to provide a strong coordinating mechanism for uniform enforcement of
food safety norms. NFCS also recommended that food safety education should be
initiated in educational institutions in order to lay the foundation of overall
good health of the young. This will ensure that the students who work in the
hospitality and tourism sector will become role models in safe food practices
and thereby strengthen the competitive advantage of Maldives as a tourism
destination in all aspects.
Table 5: Summary of major food security Programmes in
South Asian Countries
Countries
|
Programmes and Steps taken for Food security
|
Target Population
|
Coverage
and implementation
|
Aspect of food security7
|
Afghanistan
|
World Food Programme
|
Chronically poor and foodinsecure
families, schoolchildren, teachers, illiterate people, tuberculosis patients
and their families, internally displaced persons and ex-combatants – with a
particular emphasis on vulnerable women and girls.
|
3.7 million people each year. Since January 1, 2006.
|
Vulnerability
|
Bangladesh
|
Public
Foodgrain Distribution System (PFDS)
|
Poorest population
|
Launched in 1975
|
Availability and Accessibility
|
Bhutan
|
Receive support from several
multilateral and bilateral development agencies.
|
|||
Food Corporation of Bhutan
|
Farmers
|
Established in 1974
|
Accessibility and Availability
|
|
India
|
Public Distribution System
|
Below Poverty Line Population
|
It is intended to serve poor who number more than
330 million.
|
Accessibility
and Vulnerability
|
Mid-day Meal Scheme
|
Students in govt. primary schools/ primary schools
aided by govt. and run by local bodies.
|
The Scheme covers students of
Class I-V and was launched in 1995
|
Utilisation
|
|
Village Grain Banks Scheme
|
The
revised scheme envisages inclusion of all willing BPL/AAY families in the
villages which are to be
|
Launched
during 1996-97 by the Ministry of Tribal Affairs in 11 States; since 2004,
the scheme is being implemented
|
7 The policy targets either of the four pillars of Food
security- Availability, Access, Utilisation and Vulnerability.
Countries
|
Programmes
and Steps taken for Food security
|
Target Population
|
Coverage
and implementation
|
Aspect of food security7
|
identified
by the State Govt. in food deficit areas
|
by the Department Food &
Public Distribution.
|
|||
National Food for Work Programme (NFFWP)
|
All rural poor who are in need of wage employment
and desire to do manual and unskilled work.
|
150 most backward districts of India. Launched in
2000.
|
Accessibility
|
|
Antyodaya Anna Yojana
|
5 % of the total population in the country who sleep
without two square meals a day
|
One crore of the poorest families; launched in 2000.
|
Accessibility
and Vulnerability
|
|
Integrated Child Development Scheme
|
Children and pregnant women
|
Scheme was launched in 1975 in 33 Community
Development Blocks. It covers 6118 blocks in the
country including 4790 in rural areas, 805 in tribal areas and 523 in urban
slums.
|
Utilisation
|
|
Essential Commodities Act, 1955
|
General public
|
Launched in 1955 and
it extends to the whole of India
|
Availability
|
|
National Food Security Mission
|
Launched in 2007
|
Availability
|
||
Rashtriya Krishi Vikas Yojana
|
Farmers
|
Covers all the states and UTs and launched in 2007.
|
||
Targeted Public Distribution System
|
Below Poverty Line
|
Scheme was intended to benefit about 6 crore poor
families; launched in 1997
|
Accessibility
and Vulnerability
|
|
National Rural Employment Guarantee Act (NREGA)
|
Rural Households primarily semi-skilled or unskilled
workers living below the poverty line in rural India.
|
Launched in 2005
|
Accessibility
and Vulnerability
|
|
Sampoorna Grameen Rozgar Yojana (SGRY)
|
Women, scheduled castes, h
scheduled tribes and parents of
|
ed
in 2001 in all states and UTs
|
Accessibility
|
|
Countries
|
Programmes and Steps taken for Food security
|
Target Population
|
Coverage
and implementation
|
Aspect of food security7
|
children
withdrawn from hazardous occupations.
|
||||
Maldives
|
Hydroponics Agriculture Pilot Project
|
Youth and school children
|
Taken up in 2006
|
Utilisation
and Vulnerability
|
Food Safety advocacy sessions (I & II)
|
May, 2005
|
Utilisation
and Vulnerability
|
||
Nepal
|
Nepal Food Corporation
|
People in hill and mountain areas where there is
food deficit
|
Established in 1974
|
Accessibility and Vulnerability
|
Pakistan
|
No food security programme as such - rather plethora
of food laws. Only government of Punjab has a food policy but that considers
only wheat for the food security policy and ignores the other components of
food security.
|
Availability
|
||
Sri Lanka
|
There are food-based welfare programmes and not food security
programmes: Samurdhi programme
|
People below poverty line
|
Two million households. Started in 1995
|
Accessibility
|
Thriposha programme
|
Mothers among low income groups with infants under
one year of age (lactating mothers)
|
Launched in 1973 and covers 600, 000
beneficiaries
|
Utilisation
|
|
School mid-day meal
programme
|
Children
|
Covers 500, 000 children
in 6, 440 schools; started in 2004.
|
Utilisation and Vulnerability
|
4. Food Bank and Role of Trade – A move towards
regional Food Security
The safety nets discussed in the
section above highlight the role of individual governments in strengthening the
food security situation in their respective countries. Although most of these
programmes suffer from poor targeting and high administrative costs, the
programmes have had a positive impact in terms of improving food access and
availability and reducing poverty. At the regional level, however, the one factor
that will play a critical role in ensuring a food secure region is trade. It
will be necessary for South Asian countries to work towards enhancing regional
trade relations and increased integration with the world market.
One step that was taken towards
greater regional integration and co-operation was the establishment of the
South Asia Preferential Trade Area. Later, the South Asia Free Trade Agreement
(SAFTA) was put into place in a bid to overcome the shortcomings and
inadequacies in SAPTA. A second was the establishment of the Food Bank. The
Food Bank was to act as a regional food security reserve for SAARC countries
during food shortages and emergencies, provide regional support to national
food security efforts, foster inter-country partnerships and regional
integration, and solve regional food shortages through collective action.
The Food Bank replaced the
earlier Food Security Reserves which was established in 1988. The reserve had
been created to address the problem of food insecurity in the region by
building up a food buffer stock that could reduce food security risks,
particularly after natural disasters - floods, cyclones, etc. The
reserve was administered through the SAARC Food Security Reserve Board
(SFSRB). The Board, composed of representatives from member countries,
periodically reviewed the food situation, assessed production
and consumption prospects and monitored prices, quality, food
grain stocks and regional food trade. It also met once a year before the
annual SAARC summit and reported to its council of ministers. The
working of the reserve, however, failed to achieve the objectives for which it
was set up and had limited success in addressing the food security concerns of
the region.
The failure of the SAARC Food
Security Reserve was due to its complicated processes, harsh conditions and the
balance of payments crisis in the region. At the 15th summit in Colombo in
August, 2008, the lessons learnt from the failure of the Food Security Reserve
was put to use by SAARC members in their efforts to operationalise the Food
Bank. The SAARC Food Bank's board met for the first time in Colombo in October
15-16, 2008 and finalised the modalities for determining prices on Fob basis,
arranging deferred payments when this is requested for by a member country,
exempting food grains and food products from regulatory duties by the releasing
country and releasing food stocks from facilities closest to the requesting
country. The bank initially aimed to build up a reserve of 241,580 metric tonnes
of rice and wheat with each member country contributing a fixed proportion of
the targeted stock. India's contribution has been fixed at 63.42%, followed by
Bangladesh and Pakistan at 16.58% each, Sri Lanka and Nepal at 1.66% each,
Maldives at 0.08% and Bhutan at 0.07%. Afghanistan's contribution was left
unspecified and was to be decided later. An increase in the size of the desired
stock in the food bank is now being considered in the light of last year’s food
crisis and the huge demand for food grains in the SAARC region due to its
burgeoning population.
The main issue the Bank’s board
has to address is the speed and efficiency with which countries can access its
food grains stock in times of emergency. A meeting of the South Asia Civil
Society Forum, convened by the Nepal-based South Asia Watch on Trade, Economics
and Environment (SAWTEE) in October, 2008 suggested to the SAARC Secretariat
the following measures to simplify the operation of the food bank.
a)
periodically estimate food demand
b)
undertake measures to increase the storage capacity
available in member
states
c)
undertake regional food mapping in terms of vulnerable
regions and populations to improve access to food in remote and inaccessible
areas
d)
ensure greater political co-operation, establish a
dispute settlement mechanism and put together public-private partnerships as
integral parts of the Bank’s procurement modality
e)
improve member countries’ responsiveness to the needs
of those in crisis through quicker decision making and simplified
procedures
f)
adopt less rigid procedures and norms for price
setting
g)
maintain an apolitical, non-partisan distribution
system that is responsive to seasonal food insecurity
h)
ensure quicker movement of food grains and
i)
reduce storage and transportation costs and losses
While the establishment of the
Food Bank is a good solution to periodic crises, it is more important for the
region to have a long-term strategy to achieve food security in individual
countries and the region as a whole. Unless each country of the region is food
secure, regional security is not achievable. It is, therefore, equally
important to look at productivity and distribution issues in the region. The
development of a seed bank, investment in agricultural research and
development, agricultural extension activities and transfer of technology are
some of the measures that need to be taken to improve the region’s food
security.
In the area of agricultural
research and development, members countries need to cooperate in the following
areas: (i) the development of new varieties, hybrids and breeds, (ii) water and
natural resources management techniques; (iii) new sciences such as remote
sensing and GIS, biotechnology, weather and flood forecasting, disaster
management; common data standard for GIS, etc; (iv) technology exchange -
exchange of germplasm; exchange of variety and breed, crop and animal husbandry
practices, water and natural resources management techniques, etc; (v) capacity
building through development of human resources and development of regional
facilities (such as SPS compliant facilities and certification system for
organic farming and promotion of environmental goods with a view to ensuring
food quality and safety); (vi) regional programmes for plant and animal trans-boundary
pests and diseases control; (vii) harmonisation of policies and acts such as
those relating to protection of plant variety, bio-safety protocols,
biodiversity and indigenous knowledge.
Trade is another important way to enhance the food security
situation. Trade in food commodities can play a decisive role in achieving food
security and stabilising the prices of food. Imports help stabilise local
prices while improving both availability and access to food. SAARC nations need to define the role of
regional trade as well as trade with non-SAARC nations.
There has been an increase in
intra-regional agricultural trade with respect to 1995 trade levels in all
South Asian countries except Pakistan with India being a major, net exporter of
agricultural goods (Samaratunga and Thibbotuwawa, 2006). In 2004, 22 per cent
of total regional trade was accounted for by agricultural trade in which
India’s share was 80 per cent. Bangladesh and Sri Lanka are the main markets
for Indian agricultural products. Pakistan and Sri Lanka account for 8 per cent
and 4 per cent respectively of agricultural trade in the region. The decreasing
share of intraregional agricultural exports in the region indicates an increase
in intra-regional trade of non-agricultural products.
A brief country-wise review of the agricultural trade and
its impact on food security in South Asian countries is presented here:
Afghanistan: Afghanistan is heavily dependent on imports from
Pakistan and other neighbouring countries like Iran and Kazakhstan. Its
food-related trade with its South Asian neighbour, Pakistan, is largely
informal because of its huge and porous border with that country. Wheat flour
is Afghanistan’s main import, primarily because it has little milling
infrastructure of her own.
The Pakistan government has
recently taken steps to increase trade though formal channels. In May 2008
Pakistan approved the export of 50,000 tones of wheat to Afghanistan to avert a
food crisis there on a government-to-government basis. However, Pakistan had
limited success in promoting trade through formal channels. This is partly
because the ‘war on terror’ in the region has worsened the security situation
on the Pak-Afghan border and helped informal trade flourish and partly because
the better quality of Pakistani wheat and wheat flour provides a strong demand
stimulus to informal trade (and smuggling).
Bangladesh: Bangladesh is a net importer of both rice and wheat.
Before 1993, the private sector was not allowed to import food grains but subsequently,
commercial import of food grains has been done mostly through the private
sector. Bangladesh has liberalised imports of food grains, a step that stood it
in good stead after the floods in 1998 and 2004. In 2007-08, import duties were
reduced to offset a sharp rise in food prices. At present, the import of rice,
wheat, onions, pulses and crude edible oils are duty-free. However, despite the
zero duty, import of rice was a problem in FY2008 because of restrictions
imposed on rice exports by India. Bangladesh has also been facing problems in
importing edible oils partly because of the imposition of an export tax on
edible oils by Argentina and the one year export ban imposed on March 17, 2008
by India on all types of edible oil.
Bhutan: Traditionally, Bhutan has been a self-sufficient agrarian
country whose population consisted mainly of subsistence farmers. They produced
food and livestock products to feed themselves, rather than for sale. With
economic development and increase in trade in the region, Bhutan was able to
export some of the fruits and vegetables, particularly to India and Bangladesh.
Food imports are critical for Bhutan’s food security because of a 2.5 per cent
annual population growth, economic development, shifting livelihood strategies
from farm to non-farm sectors and the evolution of the consumer basket. Due to
geographical proximity and the bulky nature of food items, India has been the
main source of supplies of food items to Bhutan.
Bhutan imposes no tariff or
restrictions on imports of food items from India. Nor are there any
restrictions on Indian exports even when domestic price rise has led the Indian
government to restrict the export of cereals to other countries. This indicates
the Indian government’s commitment to ensure food security in Bhutan.
India: In the late 1980’s, India initiated broad trade
liberalisation and depreciation of the exchange rate which turned the terms of
trade in favour of agriculture. The move followed the emergence of some
surpluses created in rice and wheat. Imports and exports were strictly
regulated to safeguard domestic producers and consumers. In most commodities,
the level of exports and imports was determined by fluctuations in domestic
supply, and exports were residuals. Similarly, imports were allowed in the wake
of a fall in domestic production to fill the gap between domestic demand and
supply. There was little emphasis on export-oriented production, and production
patterns were strictly guided by the requirements of domestic consumers and
selfsufficiency in all major commodities. Allocation of resources based on
comparative advantage in trade hardly got any emphasis.
However, since the mid-90s, the
reluctance to trade in agricultural commodities has declined and India saw the
opportunities inherent in liberalising agricultural trade because of
comparative advantage in some agricultural products. Among the South Asian
economies, only India and Sri Lanka are net exporters of food.
Maldives: Maldives has been a major exporter of marine products but
is dependent on imports for other food items. Its principal export destinations
are Thailand, UK, Sri Lanka, Japan, France, and Pakistan. There was a sharp
rise in exports of 142 % from US$ 97 million in 1997 to US$ 225 million in
2006, mostly of marine products. However, imports have risen even more sharply,
registering a growth of 166 per cent during the same period. Its main items of
import are food and fuel and energy products. Given its high dependence on food
imports, food security remains a major cause of concern for the country.
Nepal is one of the most open, trade-dependent economies in South
Asia, with a trade-to-GDP ratio of more than 50 per cent, an average tariff
rate of about 14 per cent and virtually no quantitative restrictions. The
overall agricultural tariff structure of Nepal is significantly below that of
the WTO’s bound rate in the Agreement on Agriculture. Other import charges[6] are also
highly favourable. There are no explicit export subsidies. The country is a net importer of food,
particularly of cereals. According to official data, rice is the single largest
item of cereal imports. Rice imports from India take place through both formal
and informal channels. The longstanding Trade and Transit Treaty between Nepal
and India is one bilateral agreement with significant influence on trade
including in the agriculture sector.[7]
Additionally, Nepal also became a member of regional trade agreements (RTA)
like South Asian Free Trade Agreement (SAFTA) and BIMSTEC which aims to
mitigate the regional trade problems through greater regional economic
integration.
Pakistan: In Pakistan, major trade and agriculture related policies
are shaped through the direct intervention of and by advice from International
Financial Institutions (IFIs). Pakistan started to deregulate agriculture and
liberalise trade under the influence of IFIs well before the introduction of
WTO. The removal of subsidies and trade liberalisation in the country started
in the 1980s under the Structural Adjustment Programme (SAP). Now Pakistan is
in the process of implementing agreements and modifying legal and
administrative rules to ensure their consistency with rules and practices under
the WTO.
Many NTBs have been removed,
including those on import and export by government institutions. The list of
negative import items has been significantly reduced. It is interesting to note
that wheat does not figure significantly in Pakistan’s regional trade – it has
some trade with Bangladesh but volumes are very low. Wheat being the staple
food of the country is a major determinant of food security in the country.
Pakistan has not been self sufficient in wheat except for a few years. To meet
domestic demand, Pakistan has had to import from the international market
making it vulnerable to international price fluctuations.
Sri Lanka: Sri Lanka’s domestic production meets more than 77 per
cent of her food requirements with the rest being imported. The amount of food
exports from total domestic food production is insignificant (just over 1%). At
the individual commodity level, local production of all major food items except
wheat flour, sugar and pulses which are imported in bulk quantities exceeds
seventy five per cent of the total availability. Milk, fruits, onions and
potato are the other major items that are imported in significant quantities,
while coconut and fish are the two major
food commodities exported although in small quantities, i.e. 6% and 4% of gross
availability respectively.
Although food imports have been
increasing in volume and value in absolute terms, their share in total imports
and total exports have been declining. Total value of food imports almost
doubled during the period from 2002 to 2007, but food imports as a percentage
of total imports declined. In 2007, food imports amounted to 10.72% of overall
export earnings, which is almost the same proportion recorded in 2000. As a
whole, food availability at national level has been on the rise due to
increased domestic food production as well as imports. However, this has not
put pressure on the balance of payments because of rising export earnings. The
macro availability of food has thus improved slightly without causing alarm
during the 2000s. Being a small country, Sri Lanka is unlikely see any threat
to its level of food security as long as the same trends continue and no
serious constraints emerge in the global food market. This, however, does not
mean that Sri Lanka’s food security is problem-free.
Despite some move towards liberalisation
of agricultural trade in South Asia, the sector was and remains highly
protected – the bound tariffs on agricultural products are as high as 100-300
per cent in the WTO agreement on agriculture though applied rates are much
lower. In recent years, the number of tariff bands has been reduced but the
overall tariff rate on agriculture is still very high. (Samaratunga and
Thibbotuwawa, 2006). Agricultural goods are also subject to high non-tariff
barriers though quantitative restrictions. For easier movement of food grains
between countries of the South Asian region, member countries will have to
address the issue of trade barriers, particularly non-tariff barriers. India
will have to play a major role in this context given that she is the only major
net exporter of food items in the region while all the other countries are net
importers of food items.
5. Way forward and Policy Implications
Comprehensive and co-ordinated
international effort is required to tackle the problem of food security in developing
countries given its complexity and multidimensional nature and the dependence
of developing countries on food imports to meet domestic food requirements.
Within the South Asian region, a critical examination of domestic and trade
policy is required to move towards greater food security.
5.1 Food Availability: Since
the availability of food is a necessary condition to ensure food security,
countries in South Asia will need to take measures to reverse the trend of
declining productivity that has been evident in the recent past. This would
imply substantial investments in agricultural research, extension and outreach
programmes to disseminate technological know-how, effective communication that
improves farmers’ access to market information and improvement in the
irrigation infrastructure.
In particular, agricultural research will need to focus on
the development of new varieties that can withstand the adverse effects of
climate change on productivity. Crop
successes in the future will depend on strategic breeding improvements to
relieve specific environmental and disease problems.
A substantial amount would also
need to be invested in training people for extension and outreach programmes.
Infrastructural development, particularly power and roads, must be accorded the
highest priority to improve both availability and access. Existing policies
such as the support price and procurement policies will need to be continued to
stabilise incomes and prices.
It is also time for countries in
the region to move away from the narrow focus on selfsufficiency and take into
account their respective comparative advantages, particularly in today’s
context of increasing globalisation. This will, of course, require close
cooperation at the political level between SAARC countries.
Besides increasing food
production, emphasis must be laid on reducing wastage of food. To this end,
integrated harvest management and integrated storage and transportation
strategies need to be developed.
5.2 Food Access: Economic
access to food supplies is a crucial aspect of food security. History shows
that, at most times, there has always been enough food to feed the entire world
population. However, income inequalities make economic access to food
iniquitous. Most South Asian countries have distributions schemes aimed at
reducing such inequities. These need to be strengthened, primarily by
sharpening the identification of beneficiaries to weed out those who are
ineligible for distributive relief.
Measures to improve the asset
endowment of the poor, improve market access to producers and the creation of
more non-farm employment opportunities in rural areas are some of the measures
that need to be taken up.
5.3 Food Utilisation and
vulnerability: In most countries, adequacy of food intake has tended to
revolve round a daily minimum calorie intake. No attempts have been made to
assess the nutritional adequacy of diets to ensure good health and reduce
morbidity rates. Food security programmes in the South Asian region must move
away from the calorie intake-based measures of adequacy and nutrient-based
measures and programmes that address nutritional deficiencies need to be
introduced. This would require dove-tailing health care projects to food
security programmes with a concomitant increase in the expenditure on health
care.
The populations of hilly areas
and areas that see frequent conflicts and regular natural disasters have been
observed to be amongst the most vulnerable in terms of food security. While
food security in areas prone to conflict requires greater peace efforts,
disaster management policies need to be devised to mitigate the impact of
natural disasters. It is also necessary to tackle social issues like alcoholism
that affect intrahousehold food security. These have to be addressed through
social interventions. Imparting nutritional education, particularly among
women, apart from introducing schemes that enhance the access that women,
children and other vulnerable groups have to food are measures that will help
ensure greater food security.
5.4 Develop infrastructure: The
strengthening of rural infrastructure is
a priority area if food security is to be achieved. The following measures need
to be taken to address this issue:
•
Rebuild and improve the efficiency of the
irrigation infrastructure on an urgent basis
•
Improve transport infrastructure to improve
rural connectivity
•
Develop efficient market systems at local and
national levels to control prices
•
Regulate food markets to control artificial
scarcities and rent seeking behaviour
•
Develop mass storage and retail distribution
facilities and
•
Increase investment in targeted agricultural
research and development
5.5 Strengthen Trade:
Given the failure to operationalise the food bank so far, it is apparent that
regional trade will have to play a far greater role in achieving food security.
However, to increase the volume of regional trade, confidence building measures
would be required, especially between India and Pakistan. This will, of course,
be in addition to the dismantling of tariff and non-tariff barriers that impede
the growth of intra-regional food trade in South Asia. Tariff adjustments,
however, will need to be made keeping in mind the need to ensure a balance
between domestic production and trade since there is no level playing field in
global trade and technological development. Care should also be taken to ensure
that trade policy does not distort incentives given to local producers.
Other cross-border initiatives to improve food security in
the region include the following:
•
Harmonization of quality standards for food,
animal and plant products and recognition of each other's sanitary and
phytosanitary certification
•
Mutual cooperation in physical infrastructure
and human resource development for quality certification, particularly in view
of the problems faced by relatively less developed countries like Nepal
•
Improved regional connectivity to link the SAARC
countries through the shortest routes and
•
Removal of non-tariff barriers to cross-border
trade in food including lifting of ban on import/export of food commodities
within SAARC countries.
To conclude, regional initiatives
such as the SAARC Food Bank or the build up of national buffer stocks are
important for stabilising the prices of food grains during times of crisis. But
in the long run, South Asian countries will have to aim for a steady, sustained
rise in production through the development or acquisition of new technology to
raise food production and utilisation. This would require the adoption of an
integrated strategy that include measures to increase domestic production and
expand social safety net programmes while simultaneously collaborating on
various fronts, including the trade front. A focus on improving farm
productivity to ensure greater global competitiveness and creating non-farm
employment opportunities will help farmers overcome the challenged posed by
declining productivity, increased pressure on land because of rising population
and fluctuating prices of agricultural commodities. Given the severe political
and economic constraints the region faces, this can be only be achieved by
establishing institutional linkages and encouraging private investment.
Executive Summary
Food security is a complex issue
with several dimensions. The definition of food security itself has evolved
over time. FAO’s August 2008 report defines food security in terms of food
availability, access to food, utilisation of food and vulnerability to food
insecurity due to political, economic or social reasons. Most developing
countries fare poorly in terms of each of these four aspects of food security.
Ensuring food security therefore requires comprehensive and co-ordinated
international effort.
For the South Asian region with
a large proportion of the world’s poor and hungry, food security is a major
challenge. Making the region food secure will require action both at the
national and regional levels.
Most of the countries in the
South Asian region face the twin challenges of a rapid rise in population,
declining farm productivity and a lack of employment opportunities that
translates into livelihood insecurity. Consequently, both availability of and
access to food are adversely affected. Since regional food security presupposes
food security at the national level, each country has to strengthen domestic
production systems to overcome these challenges.
All countries need to step up
their investment in research and development and extension services to increase
productivity. Besides, investments on agricultural infrastructure such as
irrigation and power and on road networks to improve rural connectivity also
need to be stepped up. Integrated harvesting and storage and transportation
strategies have also to be worked out to reduce wastage and losses due to
improper storage.
One of the major issues that
many South Asian countries need to tackle is the tendency to move away from the
cultivation of staples towards the cultivation of other high value crops. This
could prove a particularly tricky issue to handle since it involves a trade-off
between raising farm incomes and meeting rising domestic demand for staples. An
integrated strategy that includes productivity enhancing measures and
appropriate pricing policies to create an incentive structure that balances the
two objectives of raising farm incomes and meeting the demand for food will
need to be put in place. It will also be necessary to strengthen social
security systems, introduce well-targeted distribution schemes to improve food
access for the poor, increase the incomes of the poor by increasing their asset
endowment and create greater non-farm employment opportunities.
From a longer term perspective,
South Asian countries also need to move away from the present bias towards
calorie based food security programmes to ones that address the issue of
nutritional deficiency. Rural areas, in particular, should be the focus of such
programmes because the incidence of malnutrition and diseases is much higher
there when compared to urban areas.
At the regional level, increased
agricultural trade between South Asian countries will play a far more important
role in achieving food security than initiatives like the setting up of the
SAARC Food Bank which is essentially a mechanism to handle emergency
situations. Regional trade between SAARC countries is at present impeded by
fairly high tariff and non-tariff barriers. Reducing these barriers while
simultaneously ensuring that trade policies do not distort domestic incentive
systems would go a long way in promoting regional agricultural trade.
It is also important for South
Asian countries to address the issue of the speed and efficiency of food
movements from surplus to deficit areas across the region particularly in a
crisis situation. This would require addressing issues regarding the efficiency
of transportation and transportation infrastructure and the development of
storage capacities within different countries.
There are other areas where South
Asian countries would benefit from increased cooperation. One is in the field
of agricultural research and development, particularly in areas relating to the
development of new varieties, hybrids and breeds and to the development of new
sciences such as remote sensing and GIS, biotechnology etc. Cooperation in the
field of research and development is also critical in the context of the
expected impact of climate change that includes rising temperatures, water
stress, and increased incidence of pest attacks and plant disease.
Regional initiatives to end the
endemic conflicts in the region are also required if food security is to be
achieved. Regions prone to conflict and natural disasters and the hilly regions
of South Asian countries are amongst the most vulnerable in terms of food
security. Accelerated peace efforts are required to at least ensure that
conflicts do not exacerbate the already fragile food situation in South Asia.
Appendix Table 1:
Summary of Climate Change Impact on Agriculture in South
Asian Countries
Country
|
Impact on Agriculture
|
India
|
Wheat
yields in central India may drop by 2% in a pessimistic climate change
scenario (GoI 2004). Kumar and Parikh (2001) show that even after accounting
for farm level adaptation, a 2 °C rise in mean temperature and a 7 % increase
in mean precipitation will reduce net farm revenues by 8.4% in India.
Districts in western Rajasthan, southern Gujarat, Madhya Pradesh,
Maharashtra, northern Karnataka, northern Andhra Pradesh, and southern Bihar
are highly vulnerable to climate change Numerous physical (e.g. cropping
patterns, crop diversification, and shifts to drought/salt-resistant
varieties) and socio-
economic
(e.g. ownership of assets, access to services, and infrastructural support)
factors come into play in enhancing or constraining the current capacity of
farmers to cope with adverse changes (TERI 2003)
The major foodgrain producing regions of Haryana, Punjab and
western Uttar Pradesh experience the most negative effects, along with the
coastal districts of Tamil Nadu. Punjab and Haryana are significant from the
perspective of food security in India. These regions are also facing severe
depletion of groundwater resources due to intensive cultivation techniques.
Temperature rise of 1.5 degree centigrade and 2 mm increase in precipitation
could result in a decline in rice yields by 3 to 15 %. Sorghum yields would
be affected and yields are predicted to vary from +18 to -22 % depending on a
rise of 2 to 4 degree centigrade in temperatures and increase by 20 to 40 %
of precipitation. (IPCC 2001).
|
Bangladesh
|
On
an average during the period 1962-1988, Bangladesh lost about 0.5 million
tons of rice annually as a result of floods. This amounts to nearly 30% of
the country's average annual food grain imports (Paul and Rashid 1993). Karim
et al (1996) project a net negative effect of climate change on the rice
yields. The estimated impacts on rice yield vary between -6% to +14%
depending on different climate change scenarios.
|
Bhutan
|
In
Bhutan, upland crop production, practiced close to the margins of viable
production, can be highly sensitive to variations in climate. Climate change
will cause the cultivating zone to shift upwards to unsuitably steep slopes
if temperatures increase by 2 ºC. It is also expected to increase the
severity and frequency of monsoonal storms and flooding in the Himalayas,
which could aggravate the occurrence of landslides. In addition to the danger
to life and property, some of the generated sediments may be deposited in agricultural
lands or in irrigation canals and streams and will result in a deterioration
in the quality of agricultural lands and hence productivity. (NEC 2000).
|
Sri
Lanka
|
Most crops, e.g., coarse
grain, legumes, vegetables, and potato are
|
likely to be adversely affected due to climate change. The
highest negative impact is estimated for coarse grains and coconut
production.
A rise in temperature by half a degree is expected to
increase the frequency of droughts and extreme rainfall events. This, in
turn, is expected to reduce rice output by 6 %. Increased dryness will also
adversely affect yields of key products like tea, rubber, and coconut (MENR
2000). With the tea industry in
Sri Lanka being a major source of foreign exchange and a significant source
of income for labourers, the effects are likely to be grave. An ongoing AIACC
project confirmed that changes in the monsoon rainfall pattern and an
increase in maximum air temperature are likely to be the two key factors that
will affect coconut production in the principal growing regions. The
projected coconut production after 2040 in all climate scenarios, when other
external factors are non-limiting, will not be sufficient to cater to local
consumption because of population increase. Among the different stakeholders
in coconut industry, the coconut oil (CNO) industry would be most affected.
|
|
Pakistan
|
In
the hot climate of Pakistan, cereal crops are already at the margin of
stress. An increase of 2.50C in average temperature would
translate into much higher ambient temperatures in the wheat planting and
growing stages. Higher temperatures are likely to result in decline in
yields, mainly due to the shortening of the crop life cycle, especially the
grain filling period. A report by ministry of environment highlighted that
crops like wheat, cotton, mango, and sugarcane would be more sensitive to
increase in temperatures compared to rice. The flow of Indus river is also
likely to affect cotton production in Pakistan, which might be detrimental to
the economy as it is the country’s main cash crop. Wheat yields are predicted
to decline by 6-9 % in sub-humid, semiarid, and arid areas with 1°C increase
in temperature (Sultana and Ali 2006), while even a 0.3°C decadal rise could
have a severe impact on important cash crops like cotton, mango, and
sugarcane (MoE 2003).
|
Nepal
|
Soil
loss is a major cause of decline in agricultural production in Nepal and the
negative effects of climate change may further aggravate this situation. The
impact of a rise in temperatures on wheat and maize is expected to be
negative.
|
Source: HDR 2007/08 from a
background paper. http://hdr.undp.org/en/reports/global/hdr2007-
2008/papers/kelkar_ulka%20and%20bhadwal_suruchi.pdf
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[1] The authors
owe their gratitude to the South Asia country paper authors for inputs for this
paper. KAS foundation is deeply acknowledged for the collaborative support to
the study. Our special thanks to Joerg Wolf and Rajiv Kumar for helping in
initiating this study. We are grateful to Praduman Kumar, Nisha Taneja, Shrawan
Nigam, Purushottam Mudbhary and Raghu Dayal for valuable inputs during the
course of the study. 2 Senior
Fellow and Consultant respectively at ICRIER
[2] Producers prices are
plotted in Figure 4
[3] http://hdr.undp.org/en/reports/global/hdr2007-2008/papers/kelkar_ulka%20and%20bhad
wal_suruchi.pdf
[6] The other
import charge includes: i) 8 percent agriculture development charge and ii) 1.5
percent local development charge.
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