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The State of Food Security in Pakistan: Future Challenges and Coping Strategies
Author(s): Munir Ahmad and Umar Farooq
Source: The Pakistan Development Review, Vol. 49, No. 4, Papers and Proceedings PARTS I and
II The 26th Annual General Meeting and Conference of the Pakistan Society of Development
Economists Islamabad, December 28 - 30, 2010 (Winter 2010), pp. 903-923
Published by: Pakistan Institute of Development Economics, Islamabad
Stable URL: http://www.jstor.org/stable/41428696 .
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1. INTRODUCTION
Pakistanis a low incomedevelopingcountry.Agriculture is the mostimportant
sectorofthecountry meetingfoodandfiberrequirements ofthefastgrowingpopulation.
Althoughthe rateof populationincreasehas considerablyslowed down fromover 3
percentin 1980s to 2.09 percentin 2009-10,it is stillconsideredhigh.1Withthecurrent
rateof populationgrowth, thepopulationis expectedto getdoubledby 2050- making
Pakistan4thlargestnationby 2050 fromcurrent statusof 6thmostpopulousstateof the
world[Pakistan(2010)].
The totalcultivatedareahas increased byjust40 percent duringpast60 years,while
therehasbeenmorethan4 timesincreaseinpopulation withurbanexpansion ofoverseven-
fold- resultingintomega-cities2as well as risingpopulation pressure on land.
cultivated
Wheatproduction, a majorfoodcrop, hasincreased five-fold during the same -
period yetthe
country is marginalimporter of wheat.Tremendous efforts are neededbothadvancesin
technology andpopulationcontroltonarrow thefoodsupply-demand gap.
Reducingpoverty, hunger and food insecurity are essentialpartof MDGs3 and are
pre-requisitesforeconomic development. Food security and economic growthmutually
interactand reinforceeach otherin thedevelopment process[Timmer(2004)]. A country
unableto producetheneededfoodand has no resourcesor affordto buyfoodfromthe
internationalmarketto meetdemand-supply gap, is notfood sovereignstate[Pinstrup-
Andersen(2009)]. Food securityis thus fundamental to nationalsecurity,which is
generally ignored[Fullbrook(2010)]. The extra-ordinary risein foodpricesin laterpart
of thefirstdecade of 21stcentury raisedan alarm bell on foodsecurity, for
particularly
7For inHyderabad,
example, contaminated
watertook10livesand1000people
were over
hospitalised
thecourse
oftwomonthsin2004.Khan,
etal. (2002)reported
that51percentofthevegetable
producewas
unsuitable
forhuman duetoexcess
consumption chemicalresidues.
Table 1
ofFood In Pakistan
Per CapitaAvailability
PerCapita
Annual
Availability
(kg/person/annum) PerCapita
Food E.Oil/ Meat Milk FruitsVegetableTotal DailyAvail.
Years Grains Ghee (Grams)
1990-91 137.44 9.99 13.90 60.93 47.73 23.49 293.48 804.06
1991-92 144.18 13.07 14.38 62.26 48.30 27.70 309.90 849.03
1992-93 149.93 12.50 15.48 63.09 49.06 24.45 314.51 861.68
1993-94 158.80 10.50 16.07 64.60 53.65 27.20 330.82 906.35
1994-95 138.20 12.19 16.51 66.07 55.63 28.84 317.45 869.72
1995-96 148.55 11.42 17.25 67.16 56.23 27.03 327.64 897.64
1996-97 153.95 10.46 17.87 68.58 55.34 29.98 336.19 921.06
1997-98 161.07 11.59 14.00 81.45 56.48 31.11 355.70 974.53
1998-99 167.25 12.38 14.13 81.72 56.07 29.04 360.59 987.93
1999-00 158.83 11.08 14.19 82.15 52.23 24.55 343.03 939.80
2000-01 136.51 11.48 14.42 82.92 51.31 28.65 325.29 891.20
2001-02 135.53 10.67 14.50 83.45 51.29 25.35 320.78 878.85
2002-03 142.38 10.77 14.65 84.28 50.36 26.65 329.09 901.61
2003-04 143.83 11.16 14.74 84.42 47.82 28.23 330.20 904.66
2004-05 142.58 12.35 15.19 85.50 52.64 26.17 334.42 916.23
2005-06 140.98 12.75 16.33 90.30 51.25 31.18 342.79 939.14
2006-07 144.79 12.81 16.70 94.54 50.04 29.79 348.67 955.26
2007-08 155.04 13.29 17.00 93.93 53.71 31.23 364.20 997.79
2008-09 153.99 13.45 17.50 94.81 52.88 24.06 356.69 977.22
Source: etal.(2009).
Farooq,
Table 2
Per CapitaAvailability ofCaloriesand Sharesof VariousSources
Total Wheat Other Grains Pulses Animal Others
Year Calories % Calories % Calories % Calories % Calories % Calories %
1961 1754 ÍÕÕ 742 42 342 Ï9 ¡Ï4 6 260 15 2% ¡7~~
1970 2203 100 984 45 438 20 77 3 257 12 447 20
1980 2124 100 967 46 304 14 49 2 261 12 543 26
1990 2410 100 1153 48 274 11 58 2 309 13 616 26
1995 2345 100 1048 45 212 9 59 3 353 15 673 29
2000 2447 100 1000 41 244 10 68 3 436 18 699 29
2001 2426 100 1000 41 256 11 58 2 436 18 676 28
2002 2419 100 999 41 275 11 59 2 437 18 649 27
2003 2320 100 945 41 108 5 61 3 322 14 886 37
2004 2231 100 897 40 107 5 62 3 321 14 844 38
2005 2271 100 914 40 108 5 63 3 325 14 861 38
2006 2423 100 930 38 110 6 65 3 330 15 888 37
Source:
Ahmad,etal.(2010)(Table5.7updated).
Table 3
in '000' tones)
forWheat(Quantity
Food Balance-Sheet
Seedand
Feed,
Stock @ 10%
others
Year ImportsChange Exports Total ofProduction
Production Availability Share
Import
7%1 3814 1080 ^308 Õ 4586 385 4205 25Í69
1970 7294 229 336 108 7751 729 7022 3.26
1980 10856 604 -1217 3 10240 1086 9154 6.60
"inJuly-March incurred
Pakistan
period, Rs2.7billionto1.438million in2008-09,
beneficiaries Rs
to 1.11million
1.65billion in2009-10
beneficiaries yearandallocated
financial for2010-11
Rs 2 billion
(2010a,b)].
[Pakistan
12Zakat
provides suchas Guzaraallowance,
assistance
financial educational health
stipends, care,
Eidgrans
socialwelfare/rehabilitation, andmarriage assistance
through andother
regular Zakatprogrammes
levelschemes
andnational [Pakistan
(2010)].
l3In
July-March Pakistan
period, disbursed to0.538million
Rs1.421million beneficiaries 2008-
during
09,Rs0.404millionto0.538million in2009-10
beneficiaries financial Morethan
year. halfoftheZakatfund
isdisbursed
through Zakat
regular programmes [Pakistan
(2010a,b)].
projectwas firstup scaled to 109 villages in May 2002 underthe name of Crop
Maximisation Program(CMP-I) and thenextendedto 1012 villagesall overPakistanin
2008 (called CMP-II), totallysponsoredby theGovernment of Pakistan.The resultsof
theSPFS wereencouragingat two sites in Punjab on thebasis of which109 villages
broughtunderthisnet in thenameof CMP-I. The performance of CMP-I was dismal
[Ahmad and Iqbal (2006)]. Despite that the CMP-II was initiatedin 1012 villagesin
Pakistanwitha targetto extendit to 13000 villages.The successof thisprogramis also
beingseriously questionedbythestakeholders andprofessionals.
The majorfocus of Pakistan'sfood securityhas remainedon supplyside that
mainlyrevolvedaroundmaintaining wheatself-sufficiencyonly. The productionand
marketing of other food crops is left on market forces. Government procuresand
maintains operationalas strategic reservesof wheatand resellsthrough flourmillsafter
coveringthe cost of storage,handling,and otherincidentals.The annual cost of
subsidisingwheatis massiveas the leakagesin procurement system,storageand the
millingsector have significanthidden costs.Giventhese leakages,thebenefits accruedto
intendedbeneficiariesdo not commensurate withthe subsidyinvolved.Otherfood
relatedsubsidieswere also providedfor addressingthe food securityof poor urban
sectionsof thesocietyincludefooditemssold through UtilityStoresCorporation (USC)
at subsidisedprices.Rs 36.9 billionswere spenton variousfood relatedsubsidiesin
2009-10, whileRs 27.044 billionsare allocatedforthe currentfiscal year [Pakistan
(2010c)].
Ahmad,et al. (2006) evaluatedvariousseasonalphasesof wheatmarketing over
theperiod1996-97to 1999-2000.Usingpartialequilibrium analysis14thestudyshowed
thattotalproducerwelfareloss was Rs 37.96 billionincluding policycostto government
amountedto Rs 11.05 billion.The overallfinancialloss was about Rs 3.37 billion,
reflectingmainlythedifference betweengainto themillers,and thesubsidyprovidedby
-
the governmenta gap apparentlyunaccountedfor in the system.The studyalso
highlightsthefactthattheconsumersare subsidisedat theexpenseof thefarmers, and
themillersabsorbalmostall thesubsidyprovidedbythegovernment to implement wheat
policy.
Ahmad,et al. (2010) concludedthatmarketing costs incurredby government-
owneddepartments are significantlyhigherthanthatof incurred by theprivatetraders.
Corruption is pervasivein commodity marketing,particularlyin thepublicsector.Rent-
seekingactivitiesincrease transactioncosts and uncertainty, discouragemarketing
investment and participation- ultimatelyleading to negativefiscal impact for the
government.
To supplementthe above conclusions,we analyse the currentgovernment
interventionin foodmarketing wheregovernment triedto achievewheatself-sufficiency
in 2008-09.The supportpriceforwheatwas raisedfromRs 650/40-kg to Rs 950/40-kg
besidesprovidingheavysubsidyon fertiliser. As a result,Pakistanhas been enjoying
self-sufficiencyin wheat for the last two years.The countryalso has a historyof
,4They
analysed - production,
quantities homeconsumption,
feed,seed,andwastage;
government
and
procurement open market andmarketed
sales;imports consumption; - government
prices issue
support,
wholesale
price, price,
import
parity
price,
government's
import
price; - government
andcosts costand
storage
private cost.
storage
Table 4
PolicyDecisionRegardingExportofWheatfromPakistan2010-11
Items Punjab Sindh
Wheatprocurement paidbythegovernment
price (Rs/40-kg) 950 950
Incidental
charges
(Rs/40-kg) 70 70
Annualwheatstorage
chargespaidbythegovernment
(Rs/40-kg) 250
(BasedonRs2 billion
permonth 10million
forstoring ofwheat)
tons
WheatcostatPASSCO/Provincial Stores
FoodDepartment's (Rs/40kg) 1270 1270
Exportparity atKarachi
price inf.o.b.
terms orRs/ton)
(Rs/40-kg 1070(26750) 1170(25500)
Governmentrelease forexport
price orRs/ton)
(Rs/40-kg
purposes 1000(25000) 1000(25000)
Losstothegovernment
atrelease
price orRs/ton)
(Rs/40-kg 270(6750) 270(6750)
Losstonational
exchequer
byallowing of1million
export ton(Rs) 6.75Billion 6.75Billion
LosstoPunjabgovernment
byallowing of
export3.5million
ton(Rs) 23.625
Billion
Applicable
Totalvalue
ofwheat ingovernment
lying atitsrelease
stores (Rs)
price 262.5Billion
Total
amount ofcredit
payable PASSCO
byprovinces, andTCP(Rs) 414Billion
Total
government 3.5million
byexporting
earning ton(Rs) 75Billion
Note: inparentheses
Figures areonpertonbasis.
5. FUTURE CHALLENGES
As discussedabove,bothsupply-and demand-side issuesof foodsecurity needto
be addressedto achievesustainablefood security. Pakistanhas enormouspotentialto
furtherdevelopitsagriculture sectoruponwhichabout2/3rdof populationis directly or
indirectly depends for theirlivelihood. However, Pakistan is
economy experiencing
structuraltransformations and theroleagriculture in economicdevelopment is changing
- its sharein nationalGDP is decliningfasterthanproportion
fast of labourseeking
livelihoodfromthis sector,and a verysmall proportion of farmsexperiencing fast
modernisation, whilemajority of thefarmers are resourcepoorandoperatein low-input,
low-output scenario.Therefore, Pakistanhas to adaptthree-prong strategy- developing
farmandnon-farm sectorsas wellas reducing polarisationwithinagriculture sectoreither
by helpingthe inefficient farmerto approachthe frontier or helpingthemto finding
alternativelivelihoodin thenon-farm sector.However,in thissectionwe shall mainly
discusstheproduction sidechallenges.
At current rateof populationgrowth, Pakistanneedsto increasesubstantial food
productionto feed a growingpopulationwith some modestsurplusesfor export.
Substantial increasein cropproductivity has to be targeted usinglesserland and water
resourcesthanare availableforagriculture today. One is not sureof achievingindividual
milestonesin the fastchangingdynamicworld,but one thingis to be believedthat
agriculturemustmaintain a growth rateof morethan5 percentin orderto ensurea rapid
growthof nationalincome,attaining macroeconomic stability,effectiveemployment of
growing labourforce,securingimprovement in distributive
justiceand a reduction in rural
poverty inPakistan.
"Food
securityis possible well into the future.Science providesthe tools,
agriculturalresearchthe modality,intellectualinsightthe design of the next
revolutions thatwillhelpsmallholder farmersimprovetheirsquareyardofearth,
and helptheworldto keeppace withpopulationgrowth" (Austin,undated).
15This totheeconomies
pertains ofsizeandindicates
themovement
oftheproducer
alongthebest
practice frontier.
production
,6That
refers
toshifting
oftheproduction
frontier byR&Defforts.
upwards
17Becauseofpoorresponse towards
inputs insuchlands,
applied uselower
thefarmers dosesofinputs
as comparedtonormal healthy Reduced
lands. useonsuchlands
ofinputs
levels varyfrom to80
12 percent
and
percent, as a from
result to affected lands
slight moderately patchy agricultural declined
output by more
than30percent [seeAhmad (2003)].
l8In
2000,about 58percent hadlessthan
farmer
oftotal only16percent
5 acreslandandoperating of
totalavailable areaIn contrast,
cultivated farms
only6 percent having morethan25 acresoflandwere
32percent
operating ofthetotalcultivated insome
area.Thesituation provinces more
israther serious.
5.2. Constraints
The majorhurdleto developtheagriculture sectorofPakistanin generaland food
grainsproduction in particular
is thelackof holisticpolicyapproach- intervening in one
or morecommoditiesleavingotherson the behestof marketforcesused to resultin
frequentsupplyanddemandimbalancesin othercommodities. Effortsin correctingthese
divergences turned oftenbad for the others.Such partialpolicydynamicsreducedthe
processof commercialisation and specialisationin agriculture
and also deceleratedthe
growth in agricultural
productivity, in foodgrains.The analysisof a recently
particularly
publishedstudyby Falkenmark, Rockström and Karlberg(2009) presentsa verybleak
picturefor Pakistan in termsof water shortageand potentialof increasingfood
production throughareaexpansionby2050. In termsofarea,verylow potential leftsince
most arable land is alreadyin use, while freshwater will be the most fundamental
constraintin foodproduction in comingdecades- Pakistanis shownin darkbrownin
1.
Figure The studyfurther concludesthatPakistanis amongthosecountriesthatare
"
approachingtheend oftheroad unlessincomegrowthin themeantime allows themto
importthefood required" (p. 65).
Fig. 1.
6. WAY FORWARD
"A precautionaryapproachwouldputfoodfirstbecause ifit is notsecure,even
,
sovereign thenthesecurity foodfirst,willrequire
ofsocietyis putat risk.Putting
the reordering and
ofpriorities recognition of thefundamental value offood in
securinglife and supportingsociety.As food secures life and the missionof
7. CONCLUDING REMARKS
Reducingpoverty,hungerand food insecurity are essentialpartof Millennium
Development Goals. Pakistan is a low income developingcountry and agriculture is its
mostimportant sectordue to its primary commitment of providinghealthyfoodto her
fastgrowingpopulation.In past60 yearsPakistan,thetotalcultivated area has increased
byjust 40 percent, whiletherewas morethan4 timesincreasein populationwithurban
expansionof over seven-foldcausingrisingpopulationpressureon cultivatedland.
Despitethatwheatproduction has increasedby five-fold,thecountry is stillitsmarginal
importer. Tremendous effortsare needed to narrow thegap between fooddemanddue to
populationgrowthand domesticfood production. Managingfood securityin Pakistan
requiresan understanding about how agriculturalpolicies affectfood supply and
incomes,thepoorvulnerablein ruraland urbanareas.The mainfocusof thispaperis to
tracethepathways to achieve/maintain foodandnutritional securityinPakistan.
the
Unfortunately, policy makers are only concentrating on attainingand
maintaining self sufficiencyin wheatproduction. Periodically,stronginterventions are
made in termsof significant increasein wheatsupportpricesalong withsubsidising
fertiliserprices to achieve bumperwheat crop. Such interventions seriouslydistort
relativelyprofitabilityof cultivation of otherrabi season food crops,e.g. othercoarse
grains,pulsesandoilseeds.
On theotherhand,thewaygovernment is managingprocurement and distribution
of foodcropsforlow pricesof wheatflourlikeoffering wheatflourat subsidisedprices,
incomesupport,cheap breadon tandursetc.,whichhas heavilyburdenedthenational
exchequeras well as encourageddevelopment of differentcartelsand mafias,e.g. wheat
flourindustry, poultryhatcheryand feed industry, etc. The recentlyadoptedwheat
procurement andprivatestoragepolicyhas heavilycostto nationalexchequeras onlyRs
262.5 billionworthof wheathas beenstoredwhileRs 414 billionarepayabletobanks.
A numberof real worldchallengesand constraints have been highlighted for
facilitatingpolicy makersin designinga comprehensive food securitypolicy forthis
country. In theway forward, some recommendations are made along withhighlighting
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