The steep rise in prices of staple crops witnessed in recent years has no doubt benefited few poor farmers on the globe by virtue of their countries being net sellers of food crops, but emerging economic environment, generally have adversely impacted poverty status by adding another 100 million poor in its fold just because of rising prices of food crops as in majority of countries there was shift towards cultivation of those food crops, which have bio-fuel producing value.
As such tremendous increase was witnessed in demand of these staple crops particularly maize and sugar cane and on the other hand due to shortage of other crops, the prices of all staple crops had recorded a substantial increase during the period from 2005 to 2008. Accordingly food became inaccessible to large number of people not just because of shortage of domestically produced staple crops, but also due to costly food imports.
Even temporary crisis regarding food affordability can add to misery of poor segments of society who normally resort to cut down few discretionary non-food expenses to meet family food needs. Generally in the absence of family savings and lack of access to institutional credit, which they need to capacitate for investment in small businesses rob them of all chances to come out of clutches of poverty.
Pakistan despite having agrarian economy facing food crisis since last one decade, which in present scenario has further aggravated and looms food insecurity for the poor. The steep rise in prices of government sponsored procured domestically produced food crops and costly import of essential food items like wheat and sugar and above all irrational export (despite having no exportable surplus) and also smuggling of food items across the borders due to poor governance and supervision at all tiers of government is responsible for this situation.
In order to provide relief to poor, particularly food affordability-government has in place social safety net programmes like previous food support coupon programmes and present Benazir Income Support Programme (BISP), but its accessibility to targeted class is not beyond doubts. Besides that offering subsidised food prices always come under attack from funding agencies, particularly IMF.
Smuggling of food items particularly wheat, rice and sugar across border and also frequent crop failures due to drought conditions or because of ill-managed water supply to farms has transformed temporary food crisis into a perennial insecurity. Further irrational trade policy combined with inaccurate logistics available with government resulted in export of even non-surplus food crops in 2007 just in quest for getting high prices (almost 300% more than in 2006) and thereafter to meet acute shortage of wheat, it was imported at much higher price.
Whereas in scenario of abruptly rising prices of food grains, according to World Bank report almost 45% of the developing countries including South East Asian countries had imposed export duties on export of food items and reduced tariff on import of food stuff in order to keep prices at lower level to avert danger of growing intensity of food insecurity for the poor. However said policy resulted in curtailment of area under food crops in the absence of higher price incentive.
Accordingly food prices shoot up in their domestic market., However countries where no such restrictions were imposed on exports, growers were prompted to obtain higher production both for meeting domestic needs and for exports. Hence easing up of supply position globally, prices of wheat and rice were slashed down both domestically and internationally.
Unfortunately in case of Pakistan, despite all incentives given to farmers particularly substantial increase in procurement prices, easy access to institutional credit and total exemption from income tax growers failed to enhance crop yield to a required level due to lack of toxic infrastructure particularly arrangement for regular water supply, increasing frequency of natural disasters like extreme drought conditions, lack of storage and transport facilities and most importantly total neglect and access to new technologies to be used at farms.
Country apart from addressing immediate food security issue needs to bring sustainable improvement in food production / supply for all time to come, which in turn depends on environment to be created for sustained increase in real income of the poor. This requires focus on such development policies which help creating opportunities for raising productivity of poor people's assets, thus giving them higher returns for their efforts. For this purpose immediate land reforms is a prerequisite for providing ownership rights to poor tillers of the soil.
This must be followed by substantial investment for development of infrastructure. Besides that scope of all agriculture research laboratories including those of agriculture universities is need to be widened so as to incorporate all latest technologies to be used for improving quality of seeds, fertilisers and methods of cultivation including crop rotation in order to improve yield of all crops thus giving not only exportable surplus of both food and cash crop, but also for ensuring food security in the country through substantial and sustained increase in income of farmers and resultant lower prices of essential food items for all consumers.
Further, in order to expand volume of export of staple crops, efforts should be mobilised for export of value added food products particularly of wheat, rice and maize. Quite a number of European countries although not producing exportable surplus of food crops, earning a lot by exporting value added products like break fast cereals and other assorted bakery items. Accordingly Pakistan government's ambition to restore traditional glory of large volume of wheat exports can be fulfilled effectively by exploring export markets for value added food products.
Further, short run food security challenge need to be addressed by government itself through building up sufficient stocks of food grains rather than providing unbridled opportunity to hoarders and smugglers on account of poor monitoring and supervision at its all tiers to create artificial shortage for raising prices.
Global trade reforms introduced by WTO for liberalisation of trade were expected to raise staple food prices and benefiting particularly developing countries producing exportable surplus of these items, unfortunately industrially rich countries endeavour to continue to provide protection to their farmers by not reducing / eliminating tariffs has falsified very philosophy of trade liberalisation.
Hence low income developing countries in particular have failed to fetch expected share in global export market and in turn growers fail to get better return and demotivated to improve yield of staple crops, thus challenge of lack of food security continue to persist. Accordingly it is imperative for developing countries to under take social safety net programmes with strong supervision and evaluation systems for protecting poor from such food security shocks.
However, in context of Pakistan expected substantial increase in number of poor due to displacement of people from Malakand and Waziristan areas and total damage of their farms due to military operation will further aggravate food security status.
Even people from affluent class are likely to come under grip of poverty as their places of residence are likely to remain under siege of militants in a foreseeable future. As such apart from taking temporary measures through social safety nets, government needs to provide incentives to growers to improve yield of food grains.
Under the circumstances it would not be appropriate to invite friendly Middle Eastern countries to cultivate needed crops on big farms allocated to them as a gesture of friendship. In order to improve lot of poor growers they need to be empowered through land reforms, transferring right of ownership to them, thus motivating them to achieve sustained growth of their farms output and improving overall food security status of the country.