FOOD SECURITY STRATEGY

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1 Ministry of Food and Agriculture FOOD SECURITY STRATEGY Dr. Shakeel Ahmed Khan

2 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. (World Food Summit,1996)

3 Contd.. Food security covers: Availability: Domestic production and imports Access: Purchasing power Utilization: Ability of the human body to digest and metabolize food

4 FACTORS AFFECTING FOOD SECURITY Stagnancy in Productivity Declines in incomes Global food price surge Food Insecurity High dependence on Imported food Increase in poverty Growing incidence of Food related diseases

5 PER CAPITA AVAILABILITY OF SELECTED FOODS (KG/ANNUM) Wheat Rice Pulses Edible Oils Source: Agricultural Statistics of Pakistan,

6 ACHIEVEMENTS IN FOOD SECURITY Agriculture sector growth rate 1980s 5.4% 1990s 4.4% 2000s 3.0% Record production: Wheat ( ) million tons ( : 23.3 million tons) Rice ( ) 7 million tons ( : 6.88 million tons) Freedom from wheat imports

7 MINIMIZED WHEAT PRICE DIFFERENCE Substantial wheat price gap between Punjab and other provinces during 2008: Punjab: Rs /kg Sindh: Rs /kg KPK: Rs /kg Baluchistan. Rs /kg Present wheat Prices: Punjab: Rs /kg Sindh: Rs /kg KPK: Rs. 28/kg Baluchistan. Rs /kg

8 General Objectives NATIONAL FOOD POLICY Adequate production through enhancing productivity Availability of farm inputs at reasonable prices and ensuring better return to farmers Stability of food prices Targeted subsidies and safety nets for poor and vulnerable Free movement of agricultural commodities through a sustainable food distribution system Increasing investment to build grain storage space through public and private sector participation

9 MAIN ELEMENTS OF FOOD SECURITY STRATEGY Achieving an average agricultural growth rate at least of 4% per annum Developing an efficient and equitable system of food procurement, storage and distribution Improving access of poor household to food by adopting pro-poor growth strategy and providing non-farm employment on a substantial scale Building a transparent and well managed system of safety nets to provide income support to very poor households

10 General Objectives MAIN THRUSTS TO ENSURE FOOD SECURITY Increasing investment in R & D for knowledge based and technology led development of agriculture sector Enhancing food production through exploiting available productivity potential Promoting investment in health and education sectors Implementation of efficient safety nets Equitable development of economy and resource utilization with a focus on poor and vulnerable segments of society Smallholder productivity/competitiveness

11 SPECIFIC INITIATIVES Launching of Benazir Income Support Programme National Task Force on Food Security Attractive farm- gate price for wheat crop Intervention price mechanism for rice and cotton Enhancing Food Grains Storage Capacity Special Programme for Food Security (CMP-II) Subsidized food items through Utility Stores network

12 DEVELOPMENT INITIATIVES Development initiatives for sustaining growth in agriculture: Improving water use efficiency and conservation Strengthening of Agricultural Research Seed production / supply and access to new seeds Benazir Tractor Scheme and provincial Initiatives Enhancing Agricultural Credit Outreach and Allocation and credit insurance scheme

13 Contd Promotion of horticulture production and marketing Improved marketing and investment in compliance of international quality and SPS standards Enhanced support to livestock and fisheries sectors Special initiatives to enhance productivity of wheat and cotton Enhancing oilseed production (canola/sunflower)

14 WAY FORWARD Negotiating investment programs with development partners Effective implementation of initiatives to address the challenge of National Food Security Focus on enhancing smallholders crop production Enhanced support to livestock and fisheries sectors

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16 Poverty Status Based on Head Count (%) Regions Pakistan Urban Rural Poverty line (Rs) Source: Economic Survey of Pakistan, Strong likelihood of sharp increase in poverty during due to increase in food and energy prices

17 Per Capita Availability of Food Items Food item Unit Wheat Kg Rice Kg Other grains Kg All cereals Kg Pulses Kg Milk Kg Edible oil Kg Meat Kg Fruit & Vegetables Kg Sugar Kg Eggs Dozens Calories Number Protein per day Gram Source: Economic Survey of Pakistan

18 Main Elements of Food Security Strategy Achieving an average agricultural growth rate at least of 4% per annum Developing an efficient and equitable system of food procurement, storage and distribution Improving access of poor household to food by adopting pro-poor growth strategy and providing non-farm employment on a substantial scale Building a transparent and well managed system of safety nets to provide income support to very poor households

19 Government Initiatives Launching of Benazir Income Support Programme PM s National Task Force on Food Security Attractive farm- gate price for wheat crop Intervention price mechanism for rice and cotton Subsidies on fertilizers Contd..

20 Land Use in Pakistan

21 Population of Pakistan

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23 General Objectives Agriculture: Engine of Economic Growth Contributes about 23% in National GDP Employs about 44.7% of labour force Provides food to 170 million population and to a very large livestock herd Provides raw material to large agro-based industries About 67% population lives in rural area and derives their livelihood from agriculture This year ( ) Agriculture Sector Growth is 4.7% with record production of Wheat (24 million tons) Rice (6.9 million tons) and Maize (4.0 million tons)

24 Production Paradigms PRODUCTION

25 Price Hike in Pakistan % 90% 80% 88% 80% 70% Percent. 60% 50% 40% 30% 58% 49% 35% 33% 32% 30% 20% 10% 18% 11% 0% Rice Edible Oil Gram Pulse Maize Fish Liquid Milk Mash Pulse Wheat Flour Mutton Beef with Bones Source: MINFAL

26 Main Component of Consumer Price Index (CPI) Inflation Item CPI (General) Food Group Non-Food Group Core Inflation Source: Federal Bureau of Statistics (FBS)

27 Poverty Status Based on Head Count (%) Regions Pakistan Urban Rural Poverty line (Rs) Source: Economic Survey of Pakistan, Strong likelihood of sharp increase in poverty during due to increase in food and energy prices

28 Poverty Status Based on Head Count (%) Regions Pakistan Urban Rural Poverty line (Rs) Source: Economic Survey of Pakistan, Strong likelihood of sharp increase in poverty during due to increase in food and energy prices

29 Population Poverty Bands in Pakistan Poverty Band Income (Rs / month) Non Poor (20.9%) >2000/- (>13,400) Transitory Non-Poor (36.3%) 1800/- Transitory Vulnerable (20.5%) 1180/- At or below poverty line (16.4%): Transitory 944/- Poor Chronically Poor (5.4%) 697/- Extremely Poor (0.5%) <470/- (<2,350) Source: Economic Survey of Pakistan ( data)

30 Per capita availability of food items Food item Unit Wheat Kg Rice Kg Other grains Kg All cereals Kg Pulses Kg Milk Kg Edible oil Kg Meat Kg Fruit & Vegetables Kg Sugar Kg Eggs Dozens Calories Number Protein per day Gram Source: Economic Survey of Pakistan

31 General Objectives Status of Food Intake Protein intake = 70.0 gram (It is 16.6% more than the Recommended Dietary Allowance (RDA) of 60 gm) Calories intake = 2363 (It is 9.3% less than the RDA of 2550 calories) Food insecure = Consuming <2350 calories

32 Food insecure people consuming <1700 kcl/capita/day (Pre price hike V/S 2008) Regions People in million Pre crisis 2008 % increase Pakistan Punjab Sindh NWFP Balochistan AJK, FATA, FANA Source: HIES data: 2008

33 Factors Affecting Food Security In Pakistan Stagnancy in Productivity Declines in incomes from Traditional crops Global food price surge Food Insecurity High dependence on Imported food Increase in poverty Growing incidence of Food related diseases

34 Global Food Crisis DECLINING CEREAL STOCKS (LOWEST IN THREE DECADES) Ending Stocks 1999 to MILLION TONS * Source: FAO Wheat Coarse grains Rice (milled) Total

35 Food Security and Household Spending Patterns Growing disparity between food inflation and wage rate adjustments Negative Trends in Food Consumption Increased household expenditure on food Increase in the portion of severely food insecure population Continued Dependency on Food Imports

36 General Objectives Strategy to overcome hunger & malnutrition Increasing investment in R & D for knowledge based development of agriculture sector Enhancing food production through exploiting available productivity potential Promoting investment in health and education sectors Implementation of efficient safety nets Equitable development of economy and resource utilization with a focus on poor and vulnerable segments of society

37 Government Initiatives Federal/provincial governments joint efforts to ensure food availability Regulatory measures for import and export of food items Vigilance on illegal siphoning of wheat/wheat floor Distribution of wheat floor at subsidized rates Contd..

38 Government Initiatives Launching of Benazir Income Support Programme PM s National Task Force on Food Security Attractive farm- gate price for wheat crop Support price mechanism extended to rice, sugarcane & cotton Subsidies on fertilizers Contd..

39 Government Initiatives Development initiatives for sustaining growth in agriculture Food security Water conservation Seed production / supply Improved marketing Assessment of the impact of the food crisis in Pakistan: short, medium and long-term response in collaboration with UN system

40 Medium to Long Term Investment Programme Food commodities policy and regulatory framework system improvement Smallholder productivity and competitiveness enhancement Crop monitoring, forecasting and information system innovation National social protection system support

41 Way Forward Negotiating investment programs with development partners Effective implementation of initiatives to address the challenge of National Food Security Focus on enhancing smallholders crop production Enhanced support to livestock and fisheries sectors

42 Conclusion Tangible support from development partners Implementation of Regional Initiatives To Support Food Security

43 NATIONAL AVERAGE WHOLE SALE PRICES (per 40 kg) IN PAKISTAN

44 WHOLE SALE PRICE PER 40 KG Year Wheat Flour Basmati Super (Old) Gram (Split) Mash (Split) Edible Oil Milk (Buffalo) Beef (With Bone) Mutto n % increase

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50 Material to Add Map of Pakistan (Showing of Agricultural and non agriculture) Total Demographics of Pakistan/population Intensity/distribution Children nutrition profile Health Profile (UNICEF) WFP interventions in Pakistan for child health and education Price Hike actual Data

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56 Agriculture: Engine of Economic Growth Contributes about 23% in National GDP Employs about 44.7% of labour force Provides food to 170 million population and to a very large livestock herd Provides raw material to large agro-based industries About 67% population lives in rural area and derives their livelihood from agriculture This year ( ) Agriculture Sector Growth is 4.7% with record production of Wheat (24 million tons) Rice (6.9 million tons) and Maize (4.0 million tons)

57 Agriculture: Engine of Economic Growth Contributes about 23% in National GDP Employs about 44.7% of labour force Provides food to 170 million population and to a very large livestock herd Provides raw material to large agro-based industries About 67% population lives in rural area and derives their livelihood from agriculture This year ( ) Agriculture Sector Growth is 4.7% with record production of Wheat (24 million tons) Rice (6.9 million tons) and Maize (4.0 million tons)

58 Food Basket (per capita per month) Food Item Unit Qty Cereals Kg 9.18 Pulses Kg 0.28 Milk and milk products Ltr 6.48 Edible oils/fats Kg 1.44 Meat (beef/mutton/poultry/fish) Kg 1.97 Fruits Kg 1.19 Eggs No 1.77 Vegetable Kg 3.55 Sugar Kg 1.37 Source: HIES data: 2008

59 Problems of Agriculture Sector Large yield gaps Water shortage intensifying Generally subsistence farming Poor farmers with low investment capacity Un-organized farming community Small farmers in majority Low knowledge and skills leading to slow adoption of production technologies Lack of appropriate marketing arrangements

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