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Money Matters

A global challenge

By Munawar Hasan
Mon, 04, 16

FOOD

South Asian countries benefited from economic growth, which is why poverty and hunger have fallen in the region, but still remain high amid challenges of weather extremes and disasters.

The Global Food Policy Report 2016 cautions on food policy and related troubles. The report issued by the International Food Policy Research Institute provides an in-depth look at major food policy developments and events in the past year, and examines key challenges and opportunities for the coming year.

This annual report points out major weaknesses in the various policies being adopted world over by governments and examines major food issues, global and regional developments, and commitments made in 2015, while presenting key data on policy indicators.

Nearly 800 million people are left hungry, one-third of the human race is malnourished, over half of some crops never make it to the table, and the planet is ravaged from environmentally unfriendly agricultural practices, the report said. As the global population is expected to soar exponentially in the coming years, we must examine ways to feed more people efficiently and sustainably, while combating climate change.

It takes a look at how food systems can best contribute to meet the UN Sustainable Development Goals.

“The Sustainable Development Goals task us all with the challenge of eradicating hunger and under nutrition in 15 years or less,” said IFPRI Director General Shenggen Fan. “This report shows that if we are to meet these goals, we have a lot of work ahead. We must promote and support a new global food system that is efficient, inclusive, climate-smart, sustainable, nutrition- and health-driven, and business-friendly in order to ensure that no one goes to sleep hungry.”

Taking a look at the latest research on opportunities and challenges the world will face in achieving multiple SDGs, the report includes chapters on climate change and smallholder farmers, cost of food, sustainable diets, and management of agricultural land and soil resources, food loss and waste, and water management.

Evidence is strong that climate change will continue to have negative impacts on agriculture. Every year, 12 million hectares of land is degraded due to drought and desertification—that’s roughly the size of Nicaragua, the largest country in Central America. This is especially detrimental to smallholders, such as the 200 million smallholder farmers in Africa south of the Sahara who tend dry lands. Conversely, the global food system accounts for one-fifth of all greenhouse gases emitted into the atmosphere, according to the Food and Agriculture Organisation of the United Nations. The development of climate-ready crops, which can lead to more efficient water use and improve yields, are key to feeding a growing population and adapting and mitigating against climate change.

Talking about water related issues, it states, today, 85 percent of global water use goes to agricultural irrigation. Innovations such as climate-ready crops can greatly reduce this amount. Rice is the staple food of more than half of the world’s population and C4 rice, for example, can double water use efficiency and increase yields by almost 50 percent. Unless significant changes are made in global water consumption, most people will live under severe water shortage conditions by 2050.

Referring to the South Asian region, it is observed in the report that this region benefited from rapid economic growth in 2015. Poverty and hunger have fallen in the region but remain high. However, weather extremes and disasters, including earthquakes, droughts, and heat waves, posed challenges for the region’s food security.

Yet the countries of South Asia made a number of food policy advances, including new initiatives related to nutrition policy and food safety in Bangladesh, a new sanitation programme and an irrigation programme in India, and programmes to improve farmers’ inputs in India and Pakistan.

The region faced numerous challenges in its efforts to reduce food and nutrition insecurity in 2015, including a catastrophic earthquake in Nepal, social unrest in Bangladesh, serious drought in rainfed areas and unseasonable rainfall and hailstorms in irrigated parts of India, and severe heat waves and an unseasonable storm (dubbed a mini-cyclone) in Pakistan. These calamities killed several thousand people and substantially reduced agricultural production. On a positive note, food price inflation across South Asia was controlled, arguably at least in part because of falling global prices for major commodities.

Talking about policy initiatives in South Asia, the report says, South Asia saw several important efforts to expand the availability of improved cultivars and quality seed to farmers. Pakistan’s Seed Act of 1976 was amended to promote the private sector’s role in seed multiplication and distribution, and to strengthen seed quality control systems. In Pakistan, the amendment of the Seed Act provides for registration of genetically modified varieties (GMOs), signalling the country’s approval of GMO cultivation following proper scientific testing

As far as policies for financial and social inclusion, the report states, Pakistan announced a relief package of Rs341 billion (approximately $3.24 billion) for small farmers, including direct cash supports and loans to revive the sector, which has suffered from unfavourable weather conditions and declining incomes. The direct benefits of the package comprise, in roughly equal thirds, cash payments to small farmers; reductions of input prices, primarily for fertiliser; and subsidies and guarantees on agricultural loans plus support for imports and marketing. The cash supports and access to credit are expected to benefit small farmers.

However, there are several major concerns: The package will increase Pakistan’s fiscal deficit by an estimated 0.4 percent of gross domestic product. Furthermore, previous general credit schemes reached relatively few farmers in Pakistan—only 14 percent in 2013—and were terminated because funds failed to reach targeted beneficiaries.

The writer is a staff member