Title: ACHIEVING FOOD SECURITY FOR ALL: The Way Forward
1ACHIEVING FOOD SECURITY FOR ALLThe Way Forward
Presentation by Prof. SHABD S. ACHARYA (
INDIA) PLENARY SESSION 3 24th Conference
of CONFEDERATION OF ASIA PACIFIC CHAMBERS OF
COMMERCE INDUSTRY (CACCI) (hosted by the
CEYLON CHAMBER OF COMMERCE) COLOMBO , JULY 5-7 ,
2010
2OUTLINE
- ISSUES AND CHALLENGES
- INDIAS APPROACH TO FOOD SECURITY
- LESSONS FROM RECENT POLICY REVIEW IN SRI LANKA
- SOME OBSERVATIONS FROM ASIAN COUNTRIES
- KEY LESSONS AND MESSAGES
3FOOD INSECURITY AND HUNGER
- Is the highest priority issue the World is
facing - In 1996 World Food Summit (WFS) Targeted to
halve the number of hungry by 2015 (820 million
to 410 million) - In 2000 Millennium Development Goals (MDGs)
First was to halve the of hungry by 2015 (8) - FAOs Assessment in 2003-05 At current pace
- - Only South America Caribbean will achieve
- MDG
- - None will achieve WFS target
4STATUS OF MDGs (FAO, 2008)
- CHRONIC HUNGER (UNDER NOURISHMENT) MILLION
Regions 1990-92/95 2003-05 2009
India 207 (25) 231 (27)
China 178 (21) 123 (14)
Rest of Asia-Pacific 198 (23) 189 (22)
SSA 169 (20) 212 (25)
Others 90 (9) 93 (12)
World Total 842 (100) 848 (100) 1020
- Asia home to 2/3 of food insecure
- South Asia home to ½ of food insecure
5MAIN ISSUES, CONCERNS CHALLENGES
6CONCEPTUAL FRAMEWORK
- CONCERN SHIFTED Global or National to HH and
individual - CONCEPT All People at All Times
- Physical and Economic Access
- Sufficient to Meet Dietary Needs
- For Healthy and Productive Life
- NOW (IFPRI) Food to Originate from
Efficient and - Low-Cost Production
System - Sustainable - use of Natural
Resources - CONNOTES Freedom from Hunger Malnutrition
- Poverty - Food Insecurity - Poverty
Cycle - Hence Food Security must look at
Poverty,
Hunger Malnutrition - Non-Food Factors Clean Water,
Sanitation, Healthcare
7INDIVIDUAL COUNTRY CONTEXT THREE LEVELS OF
FOOD SECURITY
- National or Macro Food Security (Domestic
production or capacity to import on sustainable
basis) - Household Food Security
- - Physical Access to Food
- - Economic Access to Food
- Individual Food Security ( Intra-family
allocation , - individual health)
A is necessary (but not sufficient) condition for
B B is necessary (but not sufficient ) condition
for C
8FIVE CONDITIONS FOR FOOD SECURITY FOR ALL
- 1.Sustainable Availability - Macro Security,
Macro Policy - 2.Physical Accessibility - Marketing System,
Govt. - programme.
- 3.Economic Accessibility - Purchasing Power,
Food Prices - 4.Intra-Family Allocation - Social Factors
- 5.Capacity to Utilize - Individuals Health
- FOOD INSECURITY
- Lack of Above 5
- Chronic or Transient
- Acute or Mild
9CHALLENGE
- Hunger and Malnutrition due to food insecurity
- Food Insecurity continues despite high eco-growth
- Majority of Food Insecure - Small Farmers, Ag.
Lab. - Food Insecurity more among Foodgrain Producers
- Cereals major source of calorie for Food Insecure
- Food Insecurity continues despite pervasive Govt.
Intervention / Intentions - Liberalised trade - Impact on Food Insecure ?
10GLOBAL FOOD CRISIS OF 2007-09
SITUATION
- Food prices doubled in few months
- Food emergency , food riots, export bans ,
rationing - Number of hungry 2007-923, 2009-1020
REASONS
- Global demand-supply imbalance
- Increase in prices of crude oil and energy
- Diversion of grains for bio fuel
- Market manipulations , speculations
11GLOBAL FOOD CRISIS OF 2007-09 (contd.)
DEMAND SIDE FACTORS
- Population growth
- Dietary patterns
- Diversion of food to non-food uses
- Utilization did not adjust to fluctuations in
production
SUPPLY SIDE FACTORS
- Decline in area
- Deceleration in growth of productivity
- - In developing countries ag. Investment
down - - Due to reduced research, tech ? slowed down
- - Adverse Terms of Trade for agriculture
- - Complacency, reduced priority to agriculture
12INDIA CHINA FACTOR
Per Capita Consumption (2004-06) kg/year
Item India China USA World
All Cereals 175 288 953 316
Meat 5 57 127 40
Milk 84 23 NA 98
Eggs 2 22 15 10
If world follows India's dietary pattern, 56 of
cereals production is enough900 million tonnes
will be surplus (out of 2000 million tonnes)
13INDIAS APPROACH TO FOOD SECURITY AGRICULTURAL
DEVELOPMENT
14STRUCTURAL CHARACTERISTICS
- Current Population 1.18 billion
- - Reduced population growth from 3.0 to 1.3
- Rural Population 70 826 million
- Farm Size - 1.32 ha average (121 million farms)
- 82 (99 million) operate less than 2 ha
- 40 million(33) Less than 0.4 ha
36 million(30) 0.5 to 1.0 ha 23
million(19) 1.0 to 2.0 ha
15STRUCTURAL CHARACTERISTICS (Contd.)
- Land Utilization Pattern
- - Net Sown Area - 141 million ha (46)
- - But Double Cropped Area Growing - 53 m.ha
- - Gross Cropped Area - 194 million ha
- - Cropping Intensity - 138
- Irrigation - 44 area irrigated (up from 18)
16STRUCTURAL CHARACTERISTICS (Contd.)
- Rural hh as of Total hh 73.9
- Farmer hh as of Rural hh 60.0
- Farmer hh as of Total hh 44.4
-
- Share of Farm Income in Total
hh Income of Farmer hh 50.1
17STRUCTURAL CHARACTERISTICS (Contd.)
- Agriculture in the Economy
- GDP share of agriculture decreasing
- - now only 16.7
- Employs 52 of workforce
- Gap widened over the years
- Economic Growth Agri. Growth
- 1950 to 1980 3.6 2.5
- 1980 to 1995 5.5 3.6
- 1995 to 2001 5.5 2.5
- 2002 to 2005 7.6 2.3
- 2005 to 2007 9.0 4.4
18AGRICULTURAL AND FOOD POLICIES
- FIVE PHASES
- 1947 to Mid-1960s
- Mid-1960s to Early 1980s
- Early 1980s to Mid-1990s
- Mid-1990s to 2004-05
- 2005 to Till date
- UNTIL MID-1960s
- Objective was to keep food prices checked
- Instruments of imports, controls, rationing
- Early 1960s IAAP and IADP launched in selected
- districts for increasing food production
- Land reforms launched
- But no dent on food supply
19MID-1960s
- Import dependence went up to 16
- Concessional imports from USA (PL - 480)
- Two years of severe drought
- PM appealed for fasting for a day every week
- New food strategy and policy launched
- Objective - Maximize foodgrain production
- Three foundations of New Strategy
- Improved technology to farmers
- System for supply of inputs to farmers
- Assured marketing and price support
- Supported by Policy and Political Will
20MAIN POLICY INSTRUMENTS
- (i) National Agricultural Research System
strengthened for technology generation - (ii) Agricultural extension, education and
training network for Transfer of Technology - (iii) Input supply system and irrigation
development - (iv) Institutional credit for farmers (banks
nationalized) - (v) Expansion of physical and institutional
marketing - infrastructure
- (vi) Regulation of traders and millers
activities - (vii) Support prices and purchase arrangements
- (viii) Buffer stocking and public distribution
of grains - (ix) Food and input subsidies to reconcile
conflicting - objectives of farmers and consumers
- (x) Regulation of imports and exports
21EARLY 1980s TO MID-1990s
- In early 1980s, situation became comfortable
- Shift in objectives
- From foodgrains to a balanced basket
- From macro to household food security
- Policy instruments changed/modified
- Three support extended to non-cereal crops
- New schemes for household food security
22EARLY 1980s TO MID-1990s (Contd.)
- In 1991, programme of economic reforms
- Initially, industry, trade, and financial sectors
- Later, agricultural reforms also, but cautious
- gradual
- Food programmes started for all categories of
- households
- - Production-based livelihoods Small Farmers
Inputs - Labour-based livelihoods Employment
-
Food Prices - - Market-based livelihoods Marketing
system - - Transfer-based livelihoods Welfare schemes
- Life-cycle approach in food-based programmes
23SOME POLICY INSTRUMENTS
- NATIONAL AGRI. RESEARCH SYSTEM
- Considerable expansion and strengthening
- 21, 869 scientists in 564 establishments
- ICAR 20, SAUs 63,Other Public 13 Private 4
- Research Investment Growth 4.4 per year
- Agricultural Research Investment 0.5 of Ag.GDP
- 588 Agricultural Science Centres (district level)
- 588 Agricultural Technology Management Agencies
24FARM INPUT DELIVERY
- Certified Seeds Increasing (58 Private)
- Fertilizer Use Increasing 113 kg per ha
- Chemical Pesticides Decreasing over the
years - Mechanization Increasing
- Electricity Use Increasing
- Institutional Credit Delivery Increasing
- Insurance Coverage Increasing but still low
25PRICE SUPPORT FOR FARMERS
- 25 farm products (Price Insurance)
- Expert body determines support prices
- Reconciles objectives of farmers, consumers
government budget - Farmers free to sale in the market
- If prices fall below MSP, government buys
- For Rice Wheat, price support purchase is 16 to
25 of production
26PUBLIC DISTRIBUTION OF CEREALS
- Moved from Food for the Nation to Food for the
People, and now to Food for the Vulnerable. - CURRENT PROGRAMMES FOUR GROUPS
- (i) Subsidized Cereals Distribution
- Joint responsibility of centre and state govt.
- Initially universal, but since 1997 targeted
- BPL families - 35 kg per month _at_ half the cost
- Poorest 20 million families _at_ Rs 3 or 2 per kg
- Indigent senior citizens 10 kg free
- APL families also, but nearly full cost
- 81.6 million families covered
- 462,000 fair price shops
27CURRENT PROGRAMMES
- (ii) Supplementary nutrition programme - for
infants and mothers - covers 23 million
children and 5 million mothers - (iii) Mid-Day Meals for school children
- Pre-cooked or hot-cooked meals or 3kg grain
- per month
- 120 million girls boys in 1 million schools
- (iv) Food for Work/Wage Employment Programmes
- Started in 1977-78, several schemes
- Since February 2006, Rural Employment
Guarantee Scheme (200, 300 districts) - Since April 2008, all rural districts covered
28QUANTITY DISTRIBUTED UNDER PDS (MT)
- Period Rice Wheat Total Cereals
- 1965 to 1975 3 6 10
- 1980 to 1995 7 8 15
- 1996 to 2002 10 6 18
- 2002 to 2005 21 18 39
- Now 90 goes to BPL families
29BUFFER STOCKS AND FOOD SUBSIDY
- Size of buffer stocks - Fluctuations in
production - PDS Commitment
- Norms at four points of time, by expert
committee, - every five years
- Actual stocks deviate due to several factors
- Food subsidy - Difference between economic cost
and issue price - Year Rs (billion) of GDP
- 1990-91 24.5 0.47
- 2000-01 120.1 0.62
- 2009-10 469.1 0.76
30INPUT SUBSIDIES
- Instrument to reconcile twin and conflicting
objectives of remunerative prices for farmers and
affordable price for consumers - Subsidies are indirect or implicit
- 96 go to food crops
- Increasing trend 1993-94 Rs 141 billion
- 2007-08 Rs 780 billion
- Canal water (27), fertilizer (42), electricity
(26), others (5) - Across size groups, distributed according to
operated area
31TRADE POLICY INSTRUMENTS
- TILL MID-1980s - RESTRICTIVE
- - Canalization
- - QRs and Licensing
- - MEP
- - Currency Devaluation
- Since 1999 All restriction withdrawn
- In 2007-09 Some temporary measures
32REGULATORY FRAMEWORK (2001 TO 2003)
- Movement controls Lifted
- Storage controls Lifted
- Small scale reservations Lifted
- Credit controls Lifted
- Ban on futures trading Lifted
- Bulk handling storage by private Allowed
- Foreign Investment in BHS Allowed
- Licensing Lifted
- Contract Farming Liberalized
- MSP Exists
- Levy on rice millers/sugar factories Exists
- Organized Retail Entry Allowed
33AGRICULTURAL PERFORMANCE
- AGRICULTURAL GROWTH ( per annum)
- PERIOD ALL CROPS LIVESTOCK FISH
- 1951-68 2.5 3.0 1.0 4.7
- 1968-81 3.0 3.0 3.3 3.1
- 1981-91 3.5 3.0 4.8 5.7
- 1991-97 3.7 3.1 4.0 7.0
- 1997-02 2.5 2.2 3.5 2.6
- 2002-07 2.3 1.9 3.6 3.4
- 2005-07 4.4 4.1 4.6 3.8
34CROP PRODUCTION GROWTH
- Period Cereals PO FV Others
- 1951-68 4.2 3.0 2.7 2.4
- 1968-81 3.4 1.0 4.8 3.0
- 1981-91 3.5 5.4 2.8 1.7
- 1991-97 2.4 2.9 6.1 2.2
- 1997-02 1.5 -1.4 3.7 4.1
- 2002-07 0.7 3.7 1.2 3.8
- 2005-07 3.5 0.5 3.1 6.8
35MACRO FOOD SECURITY
- (i) Domestic Production went-up (million tonnes)
- Period Total Increase Per Year
Increase - 1951 to 1975 44 to 90 2.0
- 1975 to 1995 90 to 172 4.1
- 1995 to 2005 172 to 182
1.0 - 2005 to 2008 182 to 203
7.0 - (ii) Kept pace with population growth except
during 1994-95 to 2004-05, but later picked up
36MACRO FOOD SECURITY (Contd.)
- (iii) Import dependence reduced and became net
exporter of cereals (rice wheat) - Net Exports (MT)
- 1980-85 - 1.0
- 1985-90 - 0.2
- 1990-95 0.5
- 1995-00 2.6
- 2000-05 6.4
- 2005-08 2.0
- (iv) Inter-year instability reduced
- (v) 97 of increase from productivity growth
37HOUSEHOLD INDIVIDUAL FOOD SECURITY
- (i) Physical access improved - PDS, marketing
infrastructure - (ii) Economic access improved - retail price to
per capita income ratio declined continuously
(15 to 4) - Owing to (ii), consumption of nutrient food went
up - (fruits, vegetable, milk, eggs, meat,
fish) - (iv) Hunger reduced - HH with less food declined
from 16 in 1983 to 1.9 in 2005. Only 0.3
reported inadequate food in all months - (v) Economic Poverty declined from 51 in 1978
to 22 in 2005
38CURRENT CONCERNS
- STILL TO GO A LONG WAY
- 0.3 with inadequate food is 660 thousand HH
- 22 poor means 230 million
- 47.7 under-3 children malnourished
- 37 adults with energy deficiency
39SITUATION DURING 1995 TO 2005
- Complacency in mid-1990s
- Cereal production growth plummeted to 1
- General agricultural growth slowed/stagnated
- TFP growth decelerated
- Input use growth turned negative
- Farm incomes declined
- Research Investment decreased
- Right to Food Campaigns increased PDS demand
- Imports of Wheat at double the support price
40NEW INITIATIVES SINCE 2005
- National Food Security Mission (Rs. 50 billion)
- RKVY (New Ag. Dev. Scheme for States) Rs.250
billion - National Policy for Farmers
- Credit flow to farmers doubled (72 million
farmers with credit cards) - Crop, weather insurance expanded
- All rural districts given Farm Science Centre
- Investment in Ag. RD increased
- Loan waiver of Rs. 710 billion for 4 million
farmers - Support prices of rice and wheat hiked
41OTHER INITIATIVES
- Bharat Nirman (Building India) Programme
- Watershed Development Micro Irrigation
- National Rainfed Area Authority
- National Fisheries Development Board
- National Bee Development Board
- National Bamboo Mission
- National Rural Health Mission
- Revitalization of Cooperative Sector
- New Food Law and Food Safety Authority
- Warehousing Development Regulation Act
42AS A CONSEQUENCE
- Farmers faith restored
- Production jumped to 212 million in 2007-08
- Procurement exceeded the needs of PDS
43RECENT POLICY STUDIES IN SRI LANKA AND SOME
LESSONS (FEBUARY 2010)
THEMES
- Agricultural Research and Extension Policy
- Empowerment Policy for Farmers
PARTNERS
- Sri Lanks Council for Agricultural Research
Policy (CARP) - Agrarian Research Training Institute (HARTI)
SUPPORTED BY
- Food and Ag. Organization of UNO (FAO)
- International Fund for Agric. Development (IFAD)
S.S. Acharya Senior Policy Consultant of FAO
44SOME MAIN FEATURES OF SRI LANKA
- Overall poverty incidence reduced (to 15) but is
very high in rural districts estate sector - Last two decades, economy grew _at_ of 5 but ag.
sector grew only 2 per annum - Share of ag. GDP only 12 but employs 33
- 3.25 million ag. Holdings, average size 0.6 ha.
- 45 tiny holdings (560 sq. meters) 4
land - 54.8 small holdings (0.8 ha.) 76 land
- 0.2 estate holdings ( 58.3 ha) 20 5 land
45SOME MAIN FEATURES OF SRI LANKA (contd.)
- Sector Share in ag. GDP
- Crops 71
- Fisheries 13
- Livestock 10
- Forestry 6
- Continuous increase in agricultural land (now
65) - Good linkages of ag. with international markets
- In 2007 Ag exports US 1.2 billion
- Ag imports US 1.6 billion
46MAIN SUGGESTIONS
- Six Ministries related to agriculture in 2008 ,
total spending was 3.8 of govt budget. It
should go up to 10 - TFP of ag. , in last four decades, has been
negative. Ag. Res. Investment is less than 0.1
of ag.GDP. International norm is at least 1 of
ag. GDP - More RD attention needed for maize, vegetables,
fruits livestock (seed, planting material
improved breed) - More adaptive research better research
extension linkages - - Frequent in-service trainings of extension
staff - - IT- based extension network
- - Involve private sector NGOs
- A separate National Agricultural University
47MAIN SUGGESTIONS (contd.)
- Identify poverty hot-spots put an integrated
package consisting of - (a) Technology, (b) Inputs, (c) Marketing
Price support, and - (d) Food safety-net programmes
- In the water management sector
- Comprehensive water resource legislation
- Groundwater endowment maps
- Farmers empowerment for PIM
- Maintenance of canals
- Allow land leasing/ renting in settlement areas
- Comprehensively review functioning of farmers
organizations, organize marketing groups, link
these to processors , bulk traders or exporters
48MAIN SUGGESTIONS (contd.)
- Up-scale cluster village development programmes,
fisher societies. - Effective marketing price guarantee programmes
for balancing the interests of farmers
consumers - Credit policy crops insurance
- Make seed import policy hassle free
- Trade policy should be based on comparative
advantage - ATTRACT PRIVATE SECTOR FOR INVESTMENT IN
MARKETING , STORAGE, AGROPROCESSING , INPUT
DELIVERY
49SOME OBSERVATIONS FOR ASIA
- China India - Treaded Paths to Food Security
with Caution, attained near self-sufficiency
and emerging as marginal exporters/importers - Medium Size Countries (except PKS) - Import
Dependence gone up (IDS, BDS) - THL, VTN, MYN - Net exporters of Cereals
- - Improved their position
- - Remain net importer of Wheat
- SLK, MLS - Net importer
- - Import Dependence went -up
- NPL, BHT, MLD - Net Importer
- - Small Quantities
- Degree of Globalization - Went up (except CHN)
- Trade Assuming Increasing Importance
50STRATEGY FOR MACRO FOOD SECURITY IN ASIA
- Large Countries (CHN, IND) - to continue high
degree of self -sufficiency - Small Import Dependent Countries (BHT, MLD,
SLK, MLS) - Buffer stocking - Others - Planning, Steering, Monitoring -
Production Imports - Farmers to continue receiving incentives -
livelihood - Appropriate policy flexibility under WTO -
international price volatility
51KEY LESSONS MESSAGES
1. Unless the goal of reducing hunger is
achieved, other MDGs will be difficult to
achieve because quite often hunger is a cause for
poverty and illiteracy. 2. Fight against hunger
received less attention than against poverty by
donors and lenders. Public spending in reducing
hunger has high returns, therefore, should be top
priority for many countries. 3. There are three
levels of Food Security A.
National or Macro Food Security
B. Household Food Security C.
Individual Food Security Overtime, the
programmes should move from A to B then to C.
52KEY LESSONS MESSAGES (Contd.)
4. Agricultural dominant countries
should focus on agricultural development
and programmes for macro and hh food
security to reduce hunger and poverty at a rapid
rate. 5. Poverty is more pronounced in
rural areas. Rural hh livelihoods involve a
combination of the following Small
landholders Production-based
Landless hh Labour-based
Small surpluses Market-based
Indigent Individuals Transfer-based
There must be programmes to address all of
these hhs.
53KEY LESSONS MESSAGES (Contd.)
6. Macro or national food security depends
on national food production, extent and capacity
to trade food, and trade policies of other
countries. All these need to be carefully
monitored. Wherever, domestic capacity for
increasing food production exists and where a
large proportion of people depend on farming, a
high degree of self-sufficiency helps in reducing
hunger. 7. Price and market support for food
producers and provision of key high-yielding
inputs at reasonable prices are important
instruments of food security policy, but
must be deployed cautiously. 8. Chronically food
insecure require food safety nets. So long as
food is in tight balance, and there are poor and
food insecure people, food distribution system
and buffer stocks are important instruments of
macro as well as hh and individual food security
policy.
54KEY LESSONS MESSAGES (Contd.)
9. Status of women determines intra-household
allocation of food. Womens access to assets,
knowledge, credit, and employment are key to
eliminate hunger and for achieving sustained
food security. Womens own perception is
important in south asia. 10. For effective
implementation of PDS and food safety net
programmes, Right to Food, Right to Work
and Right to Information are quite critical.
These need to be incorporated in national
policies and require strong involvement of civil
society organizations. 11. There are more than
40 million people affected by HIV/AIDS and
many more by other diseases, which impact all
dimensions of food security availability,
access and utilization. It is a cause as well
as a consequence of food insecurity and should
not be treated just as health related issue.
55KEY LESSONS MESSAGES (Contd.)
12. Even if extreme hunger is reduced, denial of
healthy life in childhood leads to
inter-generational transfer of malnutrition,
reduced productivity and higher food insecurity.
There must be life-cycle based food safety and
nutrition programmes, as in India. 13. Food
crises of 2001-03 in SADC countries exposed
the weaknesses of market and liberalized
trade-based food security system. CSOs in these
countries are demanding greater involvement of
state to achieve the objectives of national
food security by providing protection to food
grain producing farmers. Withdrawal of state
from food sector should be carefully timed.
56POLICY SHIFTS FOR ACCELERATED AGRI. GROWTH
REDUCING POVERTY AT A RAPID RATEBusiness As
Unusual Needed
- More RD investment to expand productivity
potential - More investment in productivity-enhancing
infrastructure (irrigation, soil conservation,
INM, IPM) - Shift to high-value land-saving enterprises
(livestock etc.) - Shift to high-value crops (fruits vegetables)
- Adequate transfer of technology mechanism
- Supply systems for key inputs and services,
including credit insurance
57POLICY SHIFTS FOR ACCELERATED AGRI. GROWTH
REDUCING POVERTY AT A RAPID RATE (Contd.)
- Farmer-friendly marketing and price environment
- Efficient post-harvest on-farm handling ( 4-6)
- Efficient marketing systems ( 20- 40 loss)
- Investment in rural roads (very high IRR)
- Encourage rural-urban migration it is a
continuum and is important pathway out of hunger
and poverty
58POLICY SHIFTS FOR ACCELERATED AGRI. GROWTH
REDUCING POVERTY AT A RAPID RATE (Contd.)
- Change mind set on food prices balance the
interest of farmers and consumers - Key role of private sector (commerce industry)
in all these areas - - Direct investment or under PPP framework
- - Linking farmgate to market/fork
- - Storage, transport, processing
packaging - - In influencing public policies
- - In implementation of govt. programmes
- - Gains through poverty reduction higher
growth - - No trade off, win-win situation
59THANKS