4. Food Security With Reference to National Program for Food Security A Case Study Productivity Enhancement of Small Farmers in 1012 Villages CMP II Project Mr. Allah Dad Khan Provincial Project Director NWFP Ministry of Food, Agriculture and Livestock Islamabad Dated 5 th March 2009 at PARD Peshawar

5. Food Security “Food security exists when all people, at all times, have both physical and economic access to enough safe and nutritious food to meet their dietary needs and food preferences for an active and healthy lifestyle." (World food summit 1996)

6. Food Security

9. Food Security Issue ?? Food is one of the basic rights of the people to live and adequate nutrition is essential for human development. It is the primary responsibility of the state, to ensure that people have physical and economic access, to safe food. However, it does not imply the state to simply feed its people, but to protect the rights of individuals to feed themselves, through adequate food availability and access which includes seasonal, regional and prices stability. Food security on one hand is fundamental right and state’s responsibility, while on the other hand addressing the issue at national and household levels. Availability of sufficient quantities of food is necessary although not sufficient condition, but depends upon food supply, household’s own production, other domestic outputs, commercial imports and food assistance.

10. Food Crisis Global obligation Fighting hunger, reducing poverty and ensuring food security is Pakistan global obligation. Therefore ensuring availability of ample food through increasing productivity and reducing poverty by increasing farm income of small and poor farmers, are of the highest priority issues for the Government. Under this scenario performance of agriculture sector need to be enhanced further as there is lot more potential in this sector which has not yet been realized

11. Poverty and Food Security Poverty and food security in the country are interlinked thus affecting adversely the buying power of the consumer. The decade has witnessed an increasing poverty and food security all over the world. This challenge has gained more intensity and importance in the presence of high population growth rates, increasing

12. Agriculture Poverty Nexus ?? The major reasons for higher poverty rates in rural areas are: Higher proportion of landless people involved in low paid jobs or remain unemployed during most part of the year. Division of land due to heir system resulting in fragmentation of land and generation of small farmers with poor resources, Lack of opportunities for work and even self-employment possibilities, above all, poor rural economy gives birth to high rural poverty. In fact, agriculture has strong nexus with poverty and most poverty is rural based.

13. Food Security a World Challenge (FAO ) Reducing food insecurity, vulnerability and malnutrition is central to the achievement of the Millennium Development Goals (MDGs) and the World Food Summit Targets. Commitment towards and achievement of these goals and targets remain a major challenge for the world’s community and Asia in particular. The MDGs with their related time-bound targets and indicators are designed as an agenda for action by countries with support from the international community. FAO currently is reviewing how its own activities can assist countries in the urgent and ambitious effort of meeting the MDGs, and complement the work of UN partners.

14. Food Security Focused on Sustainable food security, increasing productivity, promoting commercial agriculture, encouraging income diversification intervention and export orientation and promotion. Raising productivity and profitability of the farming community enabling the country to raise living standard of the small farmers.

15. Production-Security-Natural Resource Connections The links between sustainable agriculture and food security are summarized in Figure 1. This shows how achieving food security depends on ensuring that three key conditions are fulfilled: Sustainable food.production through the use of regenerative technologies, the full participation of farmers and pastoralists in the processes of planning, research and extension; A conserved natural resource base through approaches, practices an d technologies that build upon and enhance the health and diversity of available natural resources without depleting them; Entitlements or access to food through approaches which strengthen local capacity and build strong and diversified rural economies.

16. Sustainable Agriculture and Food Security: Making the Link figure 1

17. Seven Investments for Enhancing Sustainable Agriculture Recognize the importance of sustainable agriculture for food security, by: Promoting sustainable agriculture and resource- conserving technologies and practices. Supporting national policies and strategies for sustainable agriculture. Redirecting subsides and grants towards sustainable technologies and practices. Reforming teaching and training establishments to encourage the formal adoption of participatory methods and processes. Developing farmer-centered research and extension Improving rural infrastructure to ensure access to markets with positive price incentives.

18. Strategies for food security and food safety Contd Promotion of conjunctive water use and substitution of high delta water crops with low delta crops. Promotion of water saving technologies. Appropriate and timely availability of inputs, services and institutional agricultural credit. Improving farm to market roads and existing markets and establishment of new markets/markets information system. Support price mechanism; continuation of programmes to control salinity and water logging. Ensuring compliance to WTO requirements to maintain competitiveness of agricultural products.

19. Importance of Agriculture in Economy of Pakistan: : Agriculture is a priority area addressing problems of unemployment, poverty alleviation and food security. 67% of country’s population live in rural area and are dependent on agriculture directly or indirectly. Contributing about 22% in national Gross Domestic Product (GDP). It comprises of crops, livestock, fisheries and forestry sub-sectors having share of 46.2%, 50.8%, 1.3% and 1.6%, respectively It employs about 44.8% of the total labour force It contributes about 68% to the foreign exchange earnings through exports of raw material and value added products. More than 50% industry is agro-based. It supplies raw material to various industries

20. Top Ten Wheat Producers — 2005 (million metric ton) China 96 India 72 United States 57 Russia 46 France 37 Canada 26 Australia 24 Germany 24 Pakistan 22 Turkey 21 World Total626 Source: UN Food & Agriculture Organisation (FAO) [28]UN Food & Agriculture Organisation [28]

21. Land Mass Pakistan Pakistan Geographical Area79.61 Reported Area59.33 Cultivable Area21.96 Cultivable Waste9.17 Cultivable Waste8.95 Irrigated Area18.04 Area Million Hec

22. Land Mass 93% of the farmers in the country are small and medium having 61% of the cultivated area Large farmers are 7% holding 39% of the cultivated area Small farmers have up to 5.0 hectares of landholdings. Medium farmers have more than 5.0 hectares and up to 10.0 hectares of landholdings.

23. Area & Production of Major Food Crops, 2006-07 in Pakistan. Area in Hectares000 Production in Tones000 Name of CropAreaProduction 1. Wheat8493.90023520.000 2. Maize1043.9402906.780 8. Rice2581.5005438.520 31864.52 Source Year Book Pakistan Agri

24. Demand of food crops PopulationRate kg /annum Total DemandTotal Production of all grains Deficit 180.000 milion 150kg27.000 million tons 31.864 tons8.000 million tons As Maize is used as Feed and Industrial Crop, Rice is exported, wheat also smuggled and mismanaged

25. Wheat Yield Compared with other countries/ CropYield per acre in mds Pakistan CountryProduction /ac in mds Wheat21France68 Maize15Egypt80 Rice24America88

26. Yield Gap of Various Crops in Pakistan: Average v. Potential Yield Commodity Potential YieldAverage YieldYield GapUnachieved Potential (Kilograms per Hectare)(Percent) Wheat6,4251,6954,73074 Paddy9,4891,7037,78682 Maze6,9441,2725,67282 Sugar Cane256,00035,672220,32886 Rape & Mustard2,7436412,10277 Potato38,12810,40327,72573 Source: G.R. Sandhu, Sustainable Agriculture: A Pakistan National Conservation Strategy Sector Paper (Karachi: IUCN-World Conservation Union, 1993), 3.

27. Causes of low Yield in Higher rates of agriculture inputs Weak Agriculture research System. Access to modern technology. Lack of Investment in agriculture Special calamities. Support price to farmers inadequate.

28. KEY Challenges to Food Crisis in Dependency on one single crop of wheat as staple food. Wide yield gap between progressive and average farmer. Increasing water scarcity and inefficient use of available water. Degradation of land resources ( water logging and salinity) Inefficient transfer of technology to farmers. Weak agriculture Research and Agriculture Extension Services. Poor rural infrastructure poor people in rural areas are directly or indirectly dependent on agriculture for their livelihood.. Poverty in rural areas is very high. About 32% in rural areas and 22% in urban areas live under poverty line and are subjected to food insecurity..

29. Main approaches to over come food crisis Complete participatory approach under farmer's leadership. Empowerment of farming communities through establishment of farming organization, FSC,s VO,s Equitable use of natural resources and their conservation. Enhancing crop productivity through input management Improving income of small and poor farmers through income diversification interventions. Organizing agriculture and livestock extension services at village level through group extension approach. Human resource development ( farmers and field staff) Marketing of the produce and linkages development. Sustainability through establishing Revolving Fund in each village.

30. Case Study which leads to CMP II

31. FAO Supported Pilot Food Security Project

32. To Be Food Secure Means that: Food is available – producing enough to eat Availability is necessary but not enough to ensure access, which is necessary but not enough for effective use. Food is accessible – having enough to eat Food is used – for ending hidden hunger –Hidden hunger can cause illness, blindness and pre-mature death.

33. Back Ground 1 st Pilot Project As a follow-up of World Food Summit Declaration 1996, a Pilot Project on Food Security was launched (1998-2002) (cost: Rs 15.0 million)

34. Results: Pilot Project CropLocations Yield (Tons/ha)Area/No of farmers % increase in productivity Over benchmark BenchmarkProject WheatSargodha Daska D. I. Khan 2.89 2.62 1.70 4.84 4.27 4.47 500 (72) 600 (87) 100 (17) 68.2 61.6 162.9 Basmati IRRI Daska D. I. Khan 2.67 2.50 4.01 4.85 680 (92) 100 (17) 50.3 125.6 Results at 3 locations were almost similar and more than projected, i.e., production increased by 60-100% and income almost doubled Results at 3 locations were almost similar and more than projected, i.e., production increased by 60-100% and income almost doubled Results of Pilot Project

35. Up-scaling National Program on Food Security to 109 villages (CMP-I)

36. 2 nd  CMP I Project Implementation of Program  CMP I After successful completion of pilot project in 1998-2002, Government of Pakistan (through Ministry of Food, Agriculture and Livestock (MINFAL) allocated Rs 500 million (US$ 8.47 million) for the expansion of the pilot SPFS to 109 villages in 20 union councils of 15 districts through a four years national program called the Crop Maximization Project (CMP). This project was executed by MINFAL in collaboration with the provincial Governments of Punjab, Sindh, NWFP, Balochistan and State of Azad Jammu and Kashmir from July 2002 to June, 2006. Beneficiary households aggregated to 1,400 (10,000 people) and the area to be benefited totaled at 95,999 acres. The strategy, approach, principles and physical components and targets of the CMP were to be essentially the same as the SPFS. PC I approved by ECNEC on 3 rd May 2002

37. Performance of up-scaled Project : Despite many odds due to change in the design of the project, especially in the credit disbursement, the project gave positive results by increasing productivity from 20% to 50% in an area of more than 90,000 acres under various crops. The key lessons learnt from the SPFS/CMP experience were that ownership at the local level is critical for success and that the VOs can play major role in bringing about rural change and development.. Such support has to be in the form of specific empowerment, legal status to implement its mandate, creation of technical, administrative and management skills, as well as some catalytic seed money for creating common assets and facilities for establishing a revolving fund to finance income earning activities.

38. Crop Maximization Project - I Project ComponentsNo. of Villages FMCU, MINFAL- Punjab49 Sindh28 NWFP13 Balochistan14 AJK5 FATA0 Total:109 CMP-I

39. Low Performance Reasons Pilot Project  Inputs through VOs on delayed payment  Inputs given in kind  Revolving fund was created in 2 rd year  Farmers empowered to operate RF  Farmers participation high (80%) CMP-I  Credit through Bank for inputs  Mostly cash was given  Creation of RF was not possible  VOs Empowerment Partial  Framers Participation low (25 – 30%) CMP-I

40. Percent Increase in productivity of various crops sown under CMP I 2003-04 on bench mark DistrictWheat yield obtained Mds /ac Production BM Mds/AcWheat % increase Over BM Gujranwala31.125.621.1 Muzaffar Garh18.915.422.44 Sargodha35.226.035.5 Sahiwal32.425.725.9 Sialkot36.624.350.0 R.Yar Khan26.618.940.7 Larkana24.019.622.4 Sangar16.415.18.5 Nawab Shah33.522.946.3 Tando Allah Yar--- Bannu20.415.928.3 Di Khan25.521.916.4 Jafar Abad23.618.031.1 Loralai25.217.742.3 Muzaffar Abad19.812.064.7 Mean Increase26.521.225.0

41. Range of percent increase in productivity of various crops sown under CMP I( Crop yield mds/Ac) 2003-04 DistrictWheat Min Wheat Max Gujranwala29.0033.5 Muzaffar Garh16.723.2 Sargodha34.235.4 Sahiwal29.134.5 Sialkot31.643.4 R.Yar Khan24.538.0 Larkana13.030.0 Sangar15.118.0 Nawab Shah30.237.4 Tando Allah Yar-- Bannu18.220.0 Di Khan24.027.0 Jafar Abad22.324.5 Loralai25.026.0 Muzaffar Abad15.024.0

42. Productivity Enhancement Model ( Sargodha Model ) Productivity Enhancement Model ( Sargodha Model ) Tech. Interventions Crop Management Water Management Income Generation - Livestock - Fisheries - Off-season vegetable - Nursery raising - Milk collection - Poultry farming Technical Assistance Technology Package Training and Skill Enhancement - Community Organization & Empowerment - Enhanced Productivity - Employment Generation - More Income - Food Security & Poverty Reduction Farming Community & Farming System Community Mobilization Establishment of VO Financial Assistance Input Output Group Extension

43. Special Program for Food Security and Productivity Enhancement of Small Farmers in 1012 Villages Crop Maximization Project–II (CMP–II)

44. 3 rd Project  CMP II The SPFS ( CMP II) has now been upscale in the form of National Program for Food Security covering 1012 villages in 26 districts of the four provinces, AJK, FATA & FANA from the current financial year (2007-08). The total cost of the project for five years is Rs 8013 million

45. MTDF And Food Security Under MTDF, GOP has set Goals to maintain an annual growth rate of 4-5% up to 2015. Crop sector overall growth targets have been fixed at 4% (Cotton 5.3%, Wheat 3.5%, and Rice 3.4%), horticulture 8% and Livestock 6.5% (Milk 8%, Meat 5%and Fisheries 4.8%). To achieve the above said goals MINFAL has adopted the following agriculture development strategy: Diversification to horticulture, livestock and fisheries Enhancing productivity by narrowing yield gap, especially of small farmers. Demand driven research and new technologies High efficiency irrigation. Fair price to farmers Market infrastructure development Compliance with international quality standards.

46. Sponsoring Agency : Government of Pakistan, Ministry of Food, Agriculture and Livestock, Islamabad Execution:Provincial Agriculture Department Operation and Maintenance: District Governments through Government of NWFP Concerned Federal Ministry: Ministry of Food, Agriculture & Livestock Project Period:2007-08 ton 2011-12

47. Project Profile Cost (Rs billion)8.013 Duration (year)5 (2007-12) Project area26 districts Implementation and coordinationMINFAL ExecutionProvincial/District Govts Area (acres)500,000 Villages1012 Farming households55,000 Number of beneficiaries368,000 CMP-II

48. Changes in Project Approach Restoring the original Sargodha Model and establishing revolving fund at village level to be operated by VOs to provide inputs on deferred payment and loans for income generation activities Component of developing marketing linkages added More emphasis on income generation activities CMP-II

49. INPUTS Financial Assistance Technical Assistance Time-tested & Proven Technologies Training & Skill Enhancement Global GAP / Better Management Practices Community Mobilization Establishment of VOs OUTPUTS Revolving Fund Input Sales / Marketing Centres Farm Machinery Pools Small Enterprises Income Diversification Community Organization & Empowerment Productivity Enhancement Income Increase Employment Generation Poverty Reduction Food Security SMALL FARMERS & RESOURCE-POOR FARMING COMMUNITY

50. 1.Increase food production in the country through enhancing crop and livestock productivity. 2.Ensure food security and reduce poverty through improving income of small farmers through productivity enhancement and income generation interventions. 3.Objectives are in line with 1.Medium term development frame work. 2.Poverty reduction strategy 3.Millennium development goal.

51. CMP II Project Strategy Focus on small farmers Complete participatory approach One village as a production unit Multidisciplinary and integrated approach Using time tested technologies Productivity and income enhancement Commercializing agriculture. Ensuring cost sharing by farmers. Farming community empowerment.

52. A.Farming Community Mobilization Organization and Empowerment B.Crop / farm management C.Income diversification/ generation. D.Human resource development, E.Establishing Market linkages.

53. Criteria for Selection of Villages  This project is for small farmers. Farmers having up to 15 acres of land are entitled for the Membership of Village Organization.  All the Villages should be predominantly populated by small farmers  The selected villages should have 30 small farmers will to participate in the Project.  The villages should be selected in a cluster of 30 to 40 (in case of NWFP 32) villages, involving 3 to 8 Union Councils, in a block form and in a contiguous physical territory.  The villages should not have any soil or environmental aliment.  Villages should be located in irrigated areas  Villages should be easily accessible

54. Cost Sharing by Farmers/beneficiaries ItemCost Share Project Farmers Remarks InputsNil100%Through RF (10% Handling Charges) SOP 35000 acres Implements Pool80 %20%VO 20% Rent No Handling Charges (sop) IP 55 Income Diversification 80 %20%7% Handling Charges to Vo RF Re (sop) ID 560 Animal Health Care Unit 100 %====Free of interest After grace period of 6 months return loan in 24 installments AHU 20

56. Components, Villages and Cost Project ComponentsNo. of Villages Amount (Rs million) FMCU, MINFAL-673 Punjab4303269 Sindh2301607 NWFP1601111 Balochistan1501067 AJK40269 FATA215 Total:10128013

57. PROJECT COST ( 2007-08 to 2011-12) ItemTotal PakistanNWFP%age Share NWFP Estt & Operational Charges 1966.304305.29815.52 % Capacity Building/ social mobilization 1476.994155.56810.53 % Contingency + Transfer Grant 172.167 + 8.05723.04512.78 % Seed Money/ Revolving Fund 4390.000627.84014. 30 % Total8013.5221111. 75013. 87 %

58. Expected Output: Additional Benefits ItemAddl. Income (Rs billion) Additional income from crops12.58 Additional income from small enterprises (e.g., Livestock, Fisheries & poultry farms etc.) 1.60 Income from Job creation (No.)0.72 Additional income in five years of project: 14.9 Annual additional income to farmers after project completion 7.643 CMP-II

59. Flow of Funds Line No 1: Rs 3623 mil Project Management Cost Federal Government Funding (PSDP) Rs 8013 million Line No 2: Rs 4390 mil Revolving Fund Beneficiary Farmers - Inputs (in kinds) - Small Enterprises Revolving Fund of VOs i. Establishment cost ii.Operational cost iii.Capital cost iv.Capacity building cost v.Technical backstopping 0.0% 10.0% 10% CMP-II

60. Flow of Revolving Fund of Rs 4390 million Commercial banks through State Bank Village Organizations Revolving Fund Beneficiary Farmers Federal Government 10% 50% of Principal amount to be returned after 5 years in a period of 5 years CMP-II

61. Further Up-Scaling 15 years Time scale Villages Cost (Rs billion)  2006-07= 1000 8.0  2008-09= 3000 27.0  2010-11= 3000 31.0  2012-13= 3000 36.0  2015-19 = 3000 41.0 13000 143.0 CMP-II

62. Right to Food The Universal Declaration of Human Rights of 1948 first recognized the right to food as a human right. It was then incorporated in the International Covenant on Economic, Social and Cultural Rights (Article 11) adopted in 1966 and ratified by 156 states. The expert interpretation and more refined definition of this right are contained in General Comment 12 of the Committee on Economic, Social and Cultural Rights (1999).

63. Food is energy The cost of food is climbing fast. People everywhere are affected, and the poorest are hit hardest. Changing weather patterns and rising demand for biofuels are part of the problem. In the search for solutions, let’s remember: