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Planning Commission

Annual Report

Change in cost of the Food Basket 2010-2011

Nutrition Section Planning & Development Division Government of Pakistan
July 2011

The Report on change in cost of Food Basket Prepared and Disseminated Food security, food supplies, and the ultimate impact of food on nutritional well-being are imperative for nutrition improvement of households, communities and nations. Consequently, ensuring food security is a necessary condition for nutritional security and thus improving nutritional status. In essence, nutritional security denotes the consumption and psychological use of adequate quantities of safe and nutritious food by every member and encompasses the process of equitable distribution among members of households and communities. Given the availability of food in sufficient quantity, access is thus primarily a function of a household’s income, its distribution within the household and the price of food, besides the physical aspect. A food basket is maintained as a tool, based on minimum essential food items drawn from the consumption surveys and adopting the minimum standards from FAO/WHO dietary guide lines. The food basket so adopted for nutrition purposes is maintained as part of Five Year Plans and standard comparison for various needful. The food basket has been used in the consecutive Five Year Plan 2001-05, MTDF 2005-10 for targeted dietary change and estimating demand gaps, if any. The food basket is quite importantly used for the purposes of cost and estimating minimum national food needs. The minimum food basket adopted for MTDF 2005-10, providing minimum average energy of 2150 calories. The cost of 2150 calories has been updated since 2007 estimated at Rs.960 to Rs.1670 based on the retail prices of June 2011. The Nutrition Section, Planning Commission has completed its report on cost estimation for the year ending June 2011, during the month of July 2011. This report mainly is based on secondary data from Federal Bureau of Statistics (FBS), Ministry of Food & Agriculture, and few such public sector data depositories. Therefore, the presentation fairly reflects public sector information. A comparative cost per head based on food basket and actual food consumption cost for successive years is summarized as under:

Year Cost (Rs)/Months: • • Food Basket Consumption

2007-08 958 660

2008-09 1300 850

2009-10 1350 960

2010-11 1750 1125

June 2011 1668 -

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wherever possible. monthly change. The report has effectively presented changes over time and across provinces. Chief Nutrition Section Planning & Development Division 3 . such as. provincial comparisons.The report presented various combinations of estimated cost. The report detail comprising about 23 graphs and tables have been placed at the Planning Commission website for general information and use. An attempt has also been made to go a step further to find some beyond provincial differences. These differences have strong policy implications. The provincial comparison did highlight some prominent findings. followed by specific provincial level details. further comparisons within regions within the province.

6 Nutrients (per capita/day) (i) Calories (ii) Protein (gm) 2150 60 59 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 (Kg/month) 2010-11 11.7 10.2 1.1 0.8 2.6 1.8 2460 68 12.4 1.1 1.2 0.6 2.3 9.5 1.4 0.6 Vegetables 2.7 2430 67 12.9 1.6 2270 63 12. meat (16%) and milk (9%).5 2.2 8.4 1.7 7.1 1. Planning & Development Division.8 2590 72 14.Economic Survey of Pakistan .5 2.8 2725 75 12. fats and oils (18%).6 8.4 9.5 0.5 1.8 0. The increase mainly has been due increase in the availability of cereals (20%) and ghee & oils (22%).5 1.0 1.2 Milk(Liters) 8.6 Sugar 2.4 1. In the year 2008-09. Food Availability – 2001-11 Food Items Cereals 10.5 2.9 Meat 1.Food & Energy Availability (Per Capita/day) – 2001-2011: • • • The energy supply (as indicated by calories) steadily increased during the period 2001.8 2. This adjustment has been due to decrease in the availability of cereals (18%).5 2.9 1.Data Compiled by Nutrition Section.4 0.5 1.9 0.6 0.5 2.9 2. 4 .5 2440 67 12.1 1.9 2470 69 12. The calories supply for the subsequent years 2009-10 & 2010-2011 turned back to the trend.7 2.6 2.6 2.4 9.1 2.8 0. sugar (5%).2 8.Agriculture Statistics .9 2495 69 2155 Calories Available (Per Capita/day) 2001-2011 2800 2700 2600 Calories 2500 2400 2300 2200 2100 Calories 2001-02 2150 2002-03 2155 2003-04 2270 2004-05 2430 2005-06 2440 2006-07 2470 2007-08 2590 2008-09 2725 2009-10 2460 2010-11 2495 Source: .4 9.5 2.7 Pulses 0.3 1.2 Fats & Oils 0.7 2.4 9.3 1. there has been an unusual high level of calories (2726) supply due to cumulative increase in the availability of cereals (16%).6 2.0 1.2011.0 1.1 0. pulses (17%) and sugar (5%).

50 Nutrient (per capita/day) (i) Calories 2150 (ii) Protein (gm) 60 10.9 1.2 8.2 8.5 12. Minimum requirement & Consumed • • • • Minimum energy requirement for the time period have been estimated at 2150 calories based on a suggestive least cost Food Basket.9 1.7 1.8 0.9 8.6 2004-05 12.Comparison of Calories Available.3 0. Energy intake has declined from 1900calories in 2001-02 to 1650 calories in 2007-08.6 6. Every intake estimated through food surveys remains all time lower then the food available as estimated through perspective Food Balance Sheets.8 2007-08 7. 5 .6 6.6 0.0 0.7 0.3 9.8 0.1 1. The calories availability of steadily increased to the level 2590 in 2010-2011 from the consumption level of 1650 in 2007-08.7 2005-06 12.4 1.20 Meat 1.2 1.5 6.8 3.8 1.5 2. Planning & Development Division.5 1.2 1.8 0.8 2.5 2. Food Basket.5 2.1 1.9 1.5 2150 60 2430 67 2440 67 2590 72 1900 49 1750 45 1700 43 1650 42 Com parisionof Available.5 1.2 0.3 0.5 4.2 1.2 0.4 1.M umrequirem andConsum Calories inim ent ed (Per Capita/day) 2750 2600 2450 2300 2150 2000 1850 1700 1550 Calories 2001-02 2150 2150 1900 2004-05 2430 2150 1750 2005-06 2440 2150 1700 2007-08 2590 2150 1650 Available M inimumRequirement Consumed Source: (i) PLSM & HIES (ii) Data Compilation Nutrition Section.8 2001-02 8.1 0.1 1.6 2.90 Sugar 1.30 Pulses 0.8 4.50 Fats & Oils 1.2 2005-06 8.5 5.6 1.0 0.6 2.7 0.1 0.7 4.3 0.2 1.5 1. Availability and Consumption Food Items Per Capita/Month Food Availability 2001-02 Consumption HIES 2007-08 (Kg/month) 2004-05 Wheat 9.1 0.0 0.50 Vegetables 10.9 0.5 2.00 Rice 2.3 0.20 Milk(Liters) 4.4 9.

consumption and minimum energy requirement have been compared for the years for which comparative data is available. 6 .Comparison of Availability. All time general trend shows that availability is higher then the food basket. Food Basket and Consumption of Major Food Items-2001-2008 • • Availability. • The years of consumption surveys have been taken for comparison. while intake remains lower then food basket and availability.

The prices of gram and sugar had an irregular but increasing trend. Ghee Sugar *July. registered an increase of 200 percent during the period 2000-11. by 227 percent.) 2000-01 10 30 56 45 27 2001-02 10 35 55 49 23 2002-03 10 31 61 55 21 2003-04 12 24 75 60 19 2004-05 13 29 95 60 23 2005-06 13 31 107 59 31 2006-07 14 41 118 71 32 2007-08 18 45 123 108 28 2008-09 26 57 144 111 39 2009-10 29 53 174 112 57 2010-11* 30 70 213 147 74 Wheat Flour Gram Beef Veg.30 per kg in 2010-2011. respectively. and vegetable ghee the main energy source. Price of wheat increased from Rs. major staple food.10 in 2000-2001 to Rs.April Source: Economic Survey of Pakistan 7 .Average Retail Prices of Essential Food Items for the period 2000-11: • • • Price of wheat. The over all increase over the period has been 133 percent and 174 percent. Average Retail Prices of essential food items 2000-2011 220 200 180 160 140 120 100 80 60 40 20 0 Price (Rs.

00 2. Calories/day gms/day 2150 65 8 .25 1. The food basket has been used for the purposes of cost and estimating minimum national food needs. The food basket was targeted to provide 2150 calories and about 65 gm of protein per day per person.50 10. Government of Pakistan. for targeted dietary change.30 4. Food Items Wheat Rice Pulses Sugar Fats & Oils Meat Milk Vegetables Nutrient: Energy Protein Units Kg/month Kg/month Kg/month Kg/month Kg/month Kg/month Liters/month Kg/month Quantity 10.30 1.50 Source : MTDF 2005-2010 Planning Commission. The food basket has been used in the consecutive Five Year Plan 2001 – 05 and MTDF 2005 – 10. based on minimum Nutrition Requirement (Per Capita) • • • A national level food basket was developed based on minimum essential common food items.00 1.50 1.Food Basket. K.

1670 based on the retail prices of June 2011.) per Month Jun-10 Dec-10 215 310 100 115 50 85 90 110 140 210 230 300 210 220 315 400 1350 1750 Jun-11 285 130 85 105 240 325 250 250 1670 Source: National Average Consumer Prices by Federal Bureau of Statistics Nutrition Section P&D Division 9 .Food Expenditure per person based on the minimum Food Basket: • • • The minimum food basket adopted for MTDF (2005-2010). The cost comparisons have shown a consistent increase since 2007 from Rs. Ghee Meat Milk Vegetables Total cost (Rs. The cost of the 2150 calories has been updated since 2007-08 and following subsequent six months. for providing minimum average energy of 2150 calories. Food Expenditure based on the minimum Food Basket Food Items Wheat Flour Rice Pulses Sugar Veg.) 2007-08 160 90 45 40 145 160 135 180 955 Dec-09 230 100 45 80 130 205 190 325 1305 Cost (Rs.960 to Rs.

Food Expenditure based on the Consumption Per Capita/Month • • • Food expenditure surveys conducted at certain cross sections of time provide information on the food consumption estimates.7 0.6 6.3 0.1125 in 2011.8 4. Ghee Meat Milk Vegetables Total cost (Rs. The cost has increased from Rs.2 1.PLSM 2007-08 Source: PLSM-2007-08 Source: National Average Consumer Prices by Federal Bureau of Statistics Nutrition Section P&D Division 10 .8 0. The food consumption from the last 2007 survey is taken as bench mark and food consumption cost have been estimated and compared for the subsequent years.) Consumption* (kg/month) 7.9 0.660 in 2007 to Rs.)/Month 2008-09 2009-10 205 45 15 50 90 90 255 105 855 225 40 15 75 90 110 290 115 960 2010-11 235 45 20 100 110 130 335 150 1125 *Consumption .5 ---2007-08 140 35 10 40 85 80 205 80 675 Cost (Rs. Food Items Wheat Flour Rice Pulses Sugar Veg. based on the retail prices of June 2011.

Monthly 2010-11 1850 1800 1750 Cost (Rs. 2010. pulses. wheat. ghee & oil. The cost of food basket remained sustained and stable since February 2011 onward. Sharp decline since December 2010 to February. following decrease and stability during the year July 2010 to June 2011. 2011. rice. The cumulative increase has been about 11 percent for the period July.) 1495 Aug-10 1590 Sep-10 1645 Oct-10 1730 Nov-10 1825 Dec-10 1750 Jan-11 1690 Feb-11 1640 Mar-11 1635 Apr-11 1635 May-11 1630 Jun-11 1670 Major Source of Change: • The sharp increases in the cost of food basket during four months have been a cumulative increase in almost all items. Change in Cost of Food Basket.) 1700 1650 1600 1550 1500 1450 Jul-10 Cost (Rs.Monthly per capita cost of Food Basket – 2011: • • • • Overall cost of food basket at national level during the year registered sharp increase. ghee & oil. Sharp increase witnessed in the month July – November. 11 . The sugar prices increased by about 35 percent. November 2010. • The reduction in the cost of the food basket during the period December 2010 to February 2011 has been mainly due reversal of high spike in the price of sugar.

due to high prices of rice (5%).) 1635 May-11 1630 Jun-11 1670 12 .) 1700 1650 1600 1550 1500 Jan-11 Cost (Rs. The upward trend of the 1st quarter continued till mid of 2nd quarter (Sep to Nov-10) with an average 11 percent increase.) 1495 Aug-10 1590 Sep-10 1645 Oct-10 Cost (Rs.) 1730 Nov-10 1825 Dec-10 1750 Cost of Food Basket (3rd Quarter) 1850 1800 1750 1850 1800 1750 Cost of Food Basket (4th Quarter) Cost (Rs. mainly due rising retail prices of wheat (7%). rice (10%).) 1600 1550 1500 1450 1400 Jul-10 Cost (Rs.) Cost (Rs. pulses (13%).) 1690 Feb-11 1640 Mar-11 1635 1700 1650 1600 1550 1500 Apr-11 Cost (Rs. Cost of Food Basket (1st Quarter) 1750 1700 1650 Cost (Rs.Monthly Cost of Food Basket-National-Quarterly 2010-11 • • • • The cost of Food basket steeply increased in 1st quarter by 11 percent. The prices generally remained stable during the 4th quarter.) 1850 1800 1750 1700 1650 1600 1550 1500 Cost of Food Basket (2nd Quarter) Cost (Rs. sugar (8%). sugar (20%). edible ghee & oil (5%) and vegetables (16%). meat (5%) and vegetables (27%). The 2nd through mid 3rd quarter a downward trend in retail prices of some food items resulted in decrease of food basket cost.

Among other provinces i. In Balochistan. Besides monthly cost in KPK shows steeper upward and downward trend in contrast to Punjab. . Sindh. as compared with the national average and both the Sindh & Punjab provinces. Balochistan and national average. 2011. Sindh and National. the monthly cost had been higher compared to other provinces and also the national average. Sindh and Khyber Paktunkhwa marginal cost differences do exist. The cost of food basket has been higher in Balochistan and low in case of KPK. from Nov-10 to June-11. Sharp cost escalation across all provinces observed during June – November 2010 followed by a consistent decline till February.e. The food basket cost for KPK has been less compared to other 3 provinces.) 1750 1700 1650 1600 1550 1500 1450 1400 Jul-10 National Punjab Sindh KPK Balochistan 1495 1515 1495 1440 1500 Aug-10 1590 1610 1580 1585 1570 Sep-10 1645 1700 1690 1685 1690 Oct-10 1730 1715 1745 1730 1760 Nov-10 1825 1810 1850 1860 1905 Dec-10 1750 1720 1775 1755 1925 Jan-11 1690 1675 1720 1685 1865 Feb-11 1640 1635 1660 1605 1760 Mar-11 1635 1625 1650 1595 1725 Apr-11 1635 1640 1650 1590 1735 May-11 1630 1620 1650 1575 1755 Jun-11 1670 1655 1695 1595 1800 • • • • The over all changing trend in cost of food basket followed a similar pattern across provinces. Punjab. Difference in cost has emerged and continued during remaining part of the year. Punjab.Cost of Food Basket Provincial Comparison 2010-11 • • Overall comparison of provincial and national cost of food basket followed almost similar changing trend in cost of the food basket. • Cost of Food Basket Provincial Comparison 2010-11 2000 1950 1900 1850 1800 Cost (Rs.

Annual Average Cost of Food Basket Provincial Comparison 2010-11 • • • • Annual average monthly cost of food basket approximately has been similar in Punjab and national level. wheat (3%). average cost is slightly lower then national due to low prices of wheat (1%). average cost is slightly higher then national because of comparative high prices of wheat (4%) and meat (3%). meat (8%) and milk (16%) as compared to the national average and other provinces. While in KPK. Cost of Food Basket Provincial Comparision-2010-11 1800 1750 Cost (Rs. The prices of food items and thus the cost of food basket in Balochistan. pulses (3%) and meat (3%).) 1700 1650 1600 1550 Cost (Rs. Whereas in Sindh. have reportedly higher. Marginal to sharp food cost difference have been observed across the four provinces. • Annual Av. rice (14%). pulses (4%).) National 1661 Punjab 1660 Sindh 1680 KPK 1642 Balochistan 1749 14 . sugar (1%).

on an average no increase. fats and oils (3%).) 1700 1650 1600 1550 1500 Jul-10 Cost (Rs. followed by a decline (10%) till Feb-11and stable for the remaining months. due to decrease in prices of sugar (22%) and vegetables (44%). meat (5%). The increase witnessed during 1st half of the quarter was offset by an equally sharp downward trend in the second half maintaining on average no change. • • • 15 . pulses (15%). contributed by increasing prices of wheat (5%). sugar (22%). the cost of food basket in 1st quarter showed steep upward trend with 12 percent rise. pulses (15%). Whereas. A downward trend continued till mid of third quarter with 5 percent decrease in the overall cost mainly due to decrease in prices of sugar (7%) and vegetables (33%). sugar (22%). meat (5%).Change in monthly Cost of Food Basket by Month Punjab-2010-11 • • • Overall cost of food basket in Punjab sharply rose by 20 percent from Jun-10 to Nov-10. and vegetables (28%). rice (3%). from Nov-10 to Feb-11 downward trend has been observed with a 10 percent decline. During the 2nd quarter. During July-Sep-10 cost of food basket increased by 12 percent mainly due to increase in prices of wheat (5%). The prices and cost remained stable during the 4th quarter. Change in Cost of Food Basket-Monthly Punjab-2010-11 1850 1800 1750 Cost (Rs. milk (3%) and vegetables (36%). ghee & oils (3%).) 1515 Aug-10 1610 Sep-10 1700 Oct-10 1715 Nov-10 1810 Dec-10 1720 Jan-11 1675 Feb-11 1635 Mar-11 1625 Apr-11 1640 May-11 1620 Jun-11 1655 • In Punjab.

) Cost (Rs.) 1700 1650 1600 1550 1500 1450 Oct-10 Cost (Rs.) Cost (Rs.) 1515 Aug-10 1610 Sep-10 1700 Cost of Food Basket 2nd Quarter 1850 1800 1750 Cost (Rs.) 1715 Nov-10 1810 Dec-10 1720 Cost of Food Basket 3rd Quarter 1850 1800 1750 1850 1800 1750 1700 Cost of Food Basket 4th Quarter Cost (Rs.Quarterly Trends – Punjab Cost of Food Basket 1st Quarter 1800 1750 1700 1650 1600 1550 1500 1450 1400 Jul-10 Cost (Rs.) 1700 1650 1600 1550 1500 1450 Jan-11 Cost (Rs.) 1675 Feb-11 1635 Mar-11 1625 1650 1600 1550 1500 1450 Apr-11 Cost (Rs.) 1640 M ay-11 1620 Jun-11 1655 16 .

Punjab by selective Regions-2010-11 • The price trend and thus the cost of food basket have also been reviewed across few important locations within the province of Punjab. • Generally the trend followed similar pattern across regions but with apparent cost differences across regions during the year. Multan & Bahawalpur (Labeled as R4). Faisalabad & Sargodha (Labeled as R3). • Overall change mostly has been consistent with the national & provincial pattern demonstrating that cost increased sharply from 1st quarter to 2nd quarter followed by a sharp decrease up to 3rd quarter.) 1640 1540 1440 1340 Punjab R-1 R-2 R-3 R-4 1st Quarter 1610 1810 1660 1570 1395 2nd Quarter 1745 1995 1790 1725 1450 3rd Quarter 1645 1830 1635 1585 1530 4th Quarter 1640 1810 1630 1570 1550 • • In 1st quarter all regions and Punjab showed sharp increasing trend except regions R4. expect for region R-4. and demonstrated steady increase over the year. which became stable during 4th quarter. • The cost of food basket in region-4. • • 17 . Islamabad (Labeled as R1).R4 while sharply in other regions. Cost of Food Basket by Quarter-Punjab-Regions-2010-11 1940 1840 1740 Cost of Food Basket by Quarter Cost (Rs. Rawalpindi. A slight decrease till 4th quarter in all regions except R4. Similar decreasing trend in cost is found till mid of 3rd quarter. On the other hand.e. cost continued to increase moderately in Region . which had moderate and regular increase. • Among regions R1 i. While in 2nd till mid 3rd quarter. These four regions are. The upward cost trend was reversed. has been lowest compared to all other regions. Region-4 slight increase in cost during 3rd quarter was reversed in 4th quarter. where it followed a very consistent upward increase. Gujranwala. Islamabad demonstrated all time higher cost of food basket compared with all regions in Punjab. Sialkot & Lahore (Labeled as R2).

) Apr-11 1640 1795 1625 1570 1565 May-11 1620 1800 1605 1550 1530 Jun-11 1655 1825 1650 1585 1550 18 .) Cost (Rs.) 1500 1400 1300 Jul-10 Punjab R-1 R-2 R-3 R-4 1515 1670 1545 1485 1360 Aug-10 1610 1810 1680 1580 1375 Sep-10 1700 1945 1760 1640 1450 Cost of Food Basket 3rd Quarter 2100 2000 1900 1800 1700 1600 1500 1400 1300 Jan-11 Punjab R-1 R-2 R-3 R-4 1675 1880 1680 1620 1520 Feb-11 1635 1820 1615 1570 1530 Mar-11 1625 1790 1605 1565 1545 Punjab R-1 R-2 R-3 R-4 2100 2000 1900 1800 1700 1600 1500 1400 1300 Cost (Rs.) 1900 1800 1700 1600 Cost of Food Basket 4th Quarter Cost (Rs.Quarterly Trends – Punjab Regions Cost of Food Basket 1st Quarter 2100 2000 2100 2000 1900 1800 1700 1600 1500 1400 1300 Oct-10 Punjab R-1 R-2 R-3 R-4 1715 1950 1760 1670 1475 Nov-10 1810 2075 1870 1810 1490 Dec-10 1720 1960 1745 1690 1485 Cost of Food Basket 2nd Quarter Cost (Rs.

milk (6%) and vegetables (86%). The prices and cost of food basket mainly remained stable. sugar (14%). meat (7%). 19 . The increase was offset in 2nd half of 2nd quarter and continued till mid of 3rd quarter. milk (7%) and vegetables (24%).Monthly Sindh-2010-11 1900 1850 1800 1750 1700 1650 1600 1550 1500 1450 Jul-10 Cost (Rs. During 2nd quarter monthly cost increased by 10 percent because of changing prices of wheat (6%). sugar (21%). 2010) registered 13 percent increase. • Change in Cost of Food Basket.) The monthly cost rise during 1st quarter (July – Sept. meat (5%) and vegetables (50 %). ghee & oils (2%). due to increase in the prices of wheat (5%). pulses (13%) sugar (38%). Since November 2010 to February 2011 the cost decreased by 10 percent. The food basket cost registered an increase of 25 percent from July to November 2010 due to rise in prices of wheat (12%). mainly due to decline in prices of sugar (28%) and vegetables (47%).Change in monthly Cost of Food Basket Sindh-2010-11 • • Overall trend of monthly cost of food basket for the province Sindh has been consistent with and following national trends. pulses (17%).) 1495 Aug-10 1580 Sep-10 1690 Oct-10 1745 Nov-10 1850 Dec-10 1775 Jan-11 1720 Feb-11 1660 Mar-11 1650 Apr-11 1650 May-11 1650 Jun-11 1695 • • • Cost (Rs. rice (6%). meat (2%). fats and oils (12%). but with a slight increase in June 2011. ghee and oils (9%).

) 1900 1850 1800 1750 1700 1650 1600 1550 1500 Cost of Food Basket 2nd Quarter Cost (Rs.) Oct-10 1745 Nov-10 1850 Dec-10 1775 Cost of Food Basket 3rd Quarter 1850 1800 1750 1700 1650 1600 1550 1500 1450 Jan-11 Cost (Rs.) Cost (Rs.Quarterly Trends – Sindh 2010-11 Cost of Food Basket 1st Quarter 1850 1800 1750 1700 1650 1600 1550 1500 1450 Jul-10 Cost (Rs.) 1850 1800 1750 1700 1650 1600 1550 1500 1450 Cost of Food Basket 4th Quarter Cost (Rs.) Apr-11 1650 May-11 1650 Jun-11 1695 20 .) 1720 Feb-11 1660 Mar-11 1650 Cost (Rs.) 1495 Aug-10 1580 Sep-10 1690 Cost (Rs.) Cost (Rs.

Month wise Cost of Food Basket . • • Cost of Food Basket-Sindh.2010-11 1850 1800 1750 Cost (Rs. The monthly cost of food basket in Karachi (Labeled as R1) was comparatively high. however with a slight increase in June 2011.2010-11: • The province of Sindh have been divided in two regions.) 1700 1650 1600 1550 Sindh R-1 R-2 1st Quarter 1588 1640 1571 2nd Quarter 1790 1831 1777 3rd Quarter 1677 1699 1670 4th Quarter 1664 1675 1661 • • • The monthly cost sharply increased during 1st & 2nd quarter. The monthly cost difference among both the regions narrowed to overlap in the last quarter. whereas Hyderabad. Karachi alone is taken a separate region.Region wise. while reaming Hyderabad. Sukkur & Larkana (Labeled as R2) reportedly have lower cost. Sukkur & Larkana are labeled as region 2. Sharp decline during 3rd quarter up to mid of 3rd quarter. following the pattern of price reporting by the Federal Bureau of Statistics. 21 . The cost difference among regions has been sharp and consistent during the 1st & 2nd quarter.Sindh Region wise. while following converging and declining trend during subsequent two quarters.

) 22 .Quarterly Trends – Sindh Regions Cost of Food Basket 1st Quarter 1900 1850 1800 1750 1700 1650 1600 1550 1500 1450 1400 Jul-10 Sindh R-1 R-2 1496 1552 1477 Aug-10 1580 1630 1563 Sep-10 1690 1737 1674 Cost of Food Basket 2nd Quarter 1900 1850 1800 1750 1700 1650 1600 1550 1500 1450 1400 Oct-10 Sindh R-1 R-2 1744 1782 1732 Nov-10 1851 1888 1838 Dec-10 1776 1823 1760 Cost (Rs.) Cost (Rs.) Cost of Food Basket 3rd Quarter 1900 1850 1800 1750 1700 1650 1600 1550 1500 1450 1400 Jan-11 Sindh R-1 R-2 1721 1756 1709 Feb-11 1660 1685 1651 Mar-11 1651 1655 1649 Cost (Rs.) Cost of Food Basket 4th Quarter 1900 1850 1800 1750 1700 1650 1600 1550 1500 1450 1400 Apr-11 Sindh R-1 R-2 1647 1650 1646 May-11 1650 1661 1647 Jun-11 1696 1714 1689 Cost (Rs.

sugar (40%). Then monthly cost started declining in 2nd quarter (6 percent) and continued decreasing till mid 3rd quarter adding additional 8 percent decrease. the monthly cost slightly decreased from Feb to Jun-11 by a 2% drop off.Month wise Change in Cost of Food Basket Khyber Pakhtunkhwa -2010-11 • • • • Food Basket cost in Khyber Pakhtunkhwa has same national pattern. and stability afterwards. fats and oils (12%). monthly cost rose by 17 percent. rice (4%). The subsequent three months decrease (14%) has been due to reduction in prices of sugar (28%) and vegetables (51%). milk (8%) and vegetables (108%). pulses (16%). Change in Cost of Food Basket.Monthly KPK-2010-11 1900 1850 1800 1750 1700 1650 1600 1550 1500 1450 1400 Jul-10 Cost (Rs. following downward trend till Feb-11. meat (9%). The four months increase (29%) has been due to rise in prices of wheat (13%). pulses (9%). The monthly cost increased sharply from July to Nov-10.) • • In 1st quarter.) 1440 Aug-10 Sep-10 1585 1685 Oct-10 Nov-10 Dec-10 1730 1860 1755 Jan-11 1685 Feb-11 Mar-11 Apr-11 May-11 Jun-11 1605 1595 1590 1575 1595 Cost (Rs. and continued till mid of 2nd quarter with 10 percent increase. 23 . due to fall in prices of wheat (9%). sugar (2%) and vegetables (10%). Whereas.

) Cost (Rs.) 1730 Nov-10 1860 Dec-10 1755 Cost of Food Basket 3rd Quarter 1900 1850 1800 1800 1750 1700 Cost of Food Basket 4th Quarter Cost (Rs.) 1440 Aug-10 1585 Sep-10 1685 1700 1650 1600 1550 1500 1450 Oct-10 Cost (Rs.) 1590 M ay-11 1575 Jun-11 1595 24 .) 1600 1550 1500 1450 1400 1350 Jul-10 Cost (Rs.) 1685 Feb-11 1605 M ar-11 1595 1650 1600 1550 1500 1450 1400 1350 Apr-11 Cost (Rs.) Cost (Rs.) 1750 1700 1650 1600 1550 1500 1450 Jan-11 Cost (Rs.Quarterly Trend – Khyber Pakhtunkhwa 2010-11 Cost of Food Basket 1st Quarter 1800 1750 1700 1650 Cost of Food Basket 2nd Quarter 1900 1850 1800 1750 Cost (Rs.

sugar (16%) and vegetables (49%). Then from March to May-11. ghee and oils (3%) and milk (11%). The prices have been steadily increasing since then. Decline (10%) during next three months.pulses (23%). monthly cost slightly rise with 4 percent. The increase (28%) in the first six months have been mainly due to rising prices of wheat (20%). 25 . following sharp decline till Mach-11 then a consistent increase in subsequent months. as a result of increasing prices of sugar (6%). The cost increase was reversed by a decline to end of 3rd quarter by 10 percent.Change in Cost of Food Basket-Monthly Balochistan-2010-11 • • • • During first six months of the year the cost of food basket in Baluchistan. meat (14%). increased abruptly. have been due to falling prices of pulses (5%). sugar (19%). milk (15%) and vegetables (78%).) 1700 1650 1600 1550 1500 1450 Jul-10 Cost (Rs. ghee and oils (16%). Change in Cost of Food Basket-Monthly Balochistan-2010-11 1950 1900 1850 1800 1750 Cost (Rs. rice (22%).) 1500 Aug-10 1570 Sep-10 1690 Oct-10 1760 Nov-10 1905 Dec-10 1925 Jan-11 1865 Feb-11 1760 Mar-11 1725 Apr-11 1735 May-11 1755 Jun-11 1800 • • The monthly cost sharply increased during 1st quarter (12%) through end of 2nd quarter (14%).

) Cost (Rs.) 1865 Feb-11 1760 Mar-11 1725 Cost (Rs.) Oct-10 1760 Nov-10 1905 Dec-10 1925 Cost of Food Basket 3rd Quarter 1950 1900 1850 1800 1750 1700 1650 1600 1550 Jan-11 Cost (Rs.) 1950 1900 1850 1800 1750 1700 1650 1600 1550 Cost of Food Basket 4th Quarter Cost (Rs.Quarterly Trends – Balochistan 2010-11 Cost of Food Basket 1st Quarter 1850 1800 1750 1700 1650 1600 1550 1500 1450 Jul-10 Cost (Rs.) 1950 1900 1850 1800 1750 1700 1650 1600 1550 Cost of Food Basket 2nd Quarter Cost (Rs.) Apr-11 1735 May-11 1755 Jun-11 1800 26 .) 1500 Aug-10 1570 Sep-10 1690 Cost (Rs.) Cost (Rs.

income inequality. with 38 percent of under five children being underweight and 12 percent severely underweight. Given the continued sharp increase in prices of staple mainly the wheat. such as poverty. Mixed progress in the past has been achieved in reducing the prevalence of hunger. conventionally agreed key risk factors underlying causes of vulnerability. maize. The increasing food demand and emerging bio-fuels industry internationally is becoming a new and significant user of agricultural commodities such as sugar. Therefore estimated proportion of undernourished children would be around 50 percent as of 2011. The immediate cause of malnutrition results when the body’s needs for either protein or energy or both can not be met by diet. the number of people suffering from chronic hunger is likely to have increased further.. and follow up in the first half of 2011. About estimated 5 percent of cereals are being used for purposes other then human 27 . The increase in demand for these commodities could be an emerging factor among others for the increase in their prices both on domestic and world markets. During the period 1985-2000.Impact of Rising Food Prices on Nutrition: The rising food prices have variable impact on the prevalence of hunger across segments of the population and also the MDG targets relevant to hunger. oilseeds and palm oil etc. Correspondingly the overall energy consumption estimates during the recent past have shown a decline from 1900 calories to 1600 calories implying that the MDGs Goal on Hunger and Malnutrition envisaged at 20 percent in 2015 against prevalent estimate of 40 percent is becoming a challenge with clearly missing the target. the proportion of underweight children declined by 10 percent points. Despite declining prevalence of underweight children in 2001 the overall hunger reduction target since been showing increasing trend. General estimates suggest an additional 5 percent annual undernourished people would add to over and above the national estimates of proportion of undernourished in 2009-11. Given the national scenario. and now food prices have added new dimensions to vulnerability. Goal – 1 relates to eradication of extreme poverty and hunger. The prevalence of the malnutrition thus directly impacts the MDGs relevant targets. hunger. vegetable ghee and sugar during second half of 2010. Pakistan suffers from high rates of childhood malnutrition and appears to have made little progress over the last two decades in addressing the issue. Much of this increase is attributed to ever increasing food prices. Specifically target 1 & 2 clearly specify the chronic hunger.

Therefore. female-headed households tend to spend a larger proportion of income on food than male-headed households. wheat flour constituting more than 60 percent share. Net food buyers stand direct looser to the increase in price of staples. and thus they are hit harder by the impact of high food prices on consumption. Within the overall affected households. Implications of rising food prices would affect more of the poor households both in the urban and rural areas being the net buyers of food. Brief data presentation highlighted the facts that: . -in contrary to food availability energy intake reportedly has a declining trend reflective of increasing food insecurity at household level. on an average.consumption. Given these facts the medium term Nutrition and Food Consumption strategy needs to focus on food security and nutritional adequacy at household level through food selfsufficiency and appropriate nutritional interventions. 28 . Studies from nine developing countries including Pakistan. Maternal malnutrition. followed by sugar and vegetable ghee/oil as energy source. The specific country empirical analysis shows that overall. threequarters of rural households and 97 percent of urban households are net food buyers. (mainly the Iodine. The extent of the impact however depends in part on dietary patterns. -the recent ever increasing food prices phenomenon add another dimension to vulnerability. Therefore regular updating of the Food Balance Sheet parameters is necessitated for batter estimates for food availability.the availability of cereals is increasing indicative of sufficiency in cereal production. among rural households. Household food insecurity remains a major cause of under nutrition affecting large sections of the population in Pakistan. protein energy malnutrition (PEM) among infants and children and micronutrient malnutrition. The explanation for the overall differential impact of price rise on female and male headed households is that at comparable income levels. which also include bio-fuels production etc. Iron and Vitamin-A Deficiency) would need focused efforts to enhance nutritional values of foods. public distributions system and related income transfer schemes can act as an instrument however well targeted aiming at reducing chronic malnutrition and household food insecurity. Given the Pakistani conventional diet pattern. female-headed households suffer more from rising food prices in terms of declining food consumption. At household level primarily the focus be on ability of the household to ensure enough and balanced dietary intake for each member all times. female-headed households face considerably higher welfare losses in all countries.

Food diversity is generally advocated to enhance local marketing system. __________________________ 29 .Given the adequate market availability of food and declining intake. including household capacities to enhance food availability such as their ability to home grown foods. a much focused approach to increase local food production capacities.