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by Ciro Fiorillo, CTA - NFPCSP

National Food Policy Capacity Strengthening Program. Results of the Program Funded Research in support of the National Food Policy Thursday, 9 July 2009. Workshop’s context and objectives. by Ciro Fiorillo, CTA - NFPCSP. The context: Undernourishment.

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by Ciro Fiorillo, CTA - NFPCSP

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  1. National Food Policy Capacity Strengthening Program Results of the Program Funded Research in support of the National Food Policy Thursday, 9 July 2009 Workshop’s context and objectives by Ciro Fiorillo, CTA - NFPCSP

  2. The context: Undernourishment • Long term positive trend reverted by 2007/08 crises • FAO/WFP estimatedimpact of food crisis: • - Consuming less than 2,122 kcal/day:+7.5Million • - Consuming less than 1,805 kcal/day:+6.9Million Source: BBS; Absolute poor < 2122 kcal/day: Hard core poor < 1805 kcal/day

  3. The context: Underweight and Stunting Estimated impacts of price increase from 2006 to 2008: Wasting + 49.7% Underweight + 23.1% Impacts on children are in part irreversible 2008 data from (BRAC, 2009); 2007 data NIPORT-BDHS; Other years: HKI/IPHN-NSP

  4. The Context: Rice Production Strong response to high prices and natural disasters: BORO 2008 +18.7% ; AUS + 25.2%; AMAN + 18.1%. Good performance of Boro 2009 despite declining prices Average growth rate (between 2000-01 and 2006-07): 1.5% SOURCE: BBS

  5. The context: Rice Supply-Utilization Balance FY 2008/09 projected to end with a substantial stock increase: Bangladesh exceeds self sufficiency. Without exports, prices will decline further Scenario 1 – BBS figures (Boro yield is from 2008), except SPARSO for 2009 Boro planted area Scenario 2 – BBS figures, except DAE for Boro 2009

  6. The context: PRICE VOLATILITY • Low world food prices • good for consumers, bad for farmers and production National average retail price (coarse rice) June 2009 on June 2008 = -37% June 2009 on January 2006 = +18.5 % Source: MISM

  7. How to support rice producing farmers? • Procurement: if quantity is small compared to supply, effect on market price is limited. Announcing price only before harvest, limits impact on production and farmers’ income • Exports is another way for reducing supply in the market and sustaining prices. • BUT high price damages consumers • Cash subsidies: • deficiency payment or payments proportional to area planted, can support income and production • Lump sum payments can sustains incomes with limited impact on rice production • Input subsidies increase profitability without increasing prices, but highly distortive and limited impact on farmers’ incomes, e.g. fertilisers

  8. Emerging threats: Migration and Remittances • Migration started increasing in 2000 with remittances clearly picking up in 2005/06 • Remittances have not declined • However, there is a marked decline in the number of persons migrating since Jan ’08 • This adds to the trend of migrants having to return Source: Bangladesh Bank

  9. Emerging threats: income from garment export • Garments: an increasingly significant source of income for Bangladesh since the mid-90s • Rapid growth of past years has slowed down over the recent past, but no decline observed • Future trend depends on duration of global economic crisis Source: Bangladesh Bank

  10. Food Policy priorities • Focus on agricultureas the main domestic source of economic growth through its economic linkages • Increase agricultural productivityto sustainably reduce costs and prices, while improving availability and income • 4 keywords: intensification, diversification, sustainability & resilience • Stabilize prices through stock and trade management • Ensure adequate public stockfor up-scaling safety nets, market stabilization, and emergency reserves • Enhance safety netsreducing leakages and improving coverage and targeting of the poorest, while linking them topublic worksand development of infrastructure • Promote diversificationof diet and support nutritional status of disadvantaged groups

  11. Food Policy Approach Achieving MDG 1 and the World Food Summit target will require renewed and intensified policy commitment. FOOD SECURITY POLICIES should: • flexibly adjust to the changing market: • deficit VS surplus management • combine short term and structural responses, i.e. twin track approach: direct transfer should aim at development and graduation out of poverty • be comprehensiveincluding: - availability and stability of supply - economic, social and physical access - food utilization for safe and balanced nutrition

  12. National Food Policy Plan of Action • a comprehensive, long-term (2008-2015) framework • for • coordinating government interventions on food security • Aligning development support to national priorities • encompassing • Availability:Adequate & stable supply of safe and nutritious food • Access: Increased purchasing power and access to food by the poor through safety nets • Nutrition for all individuals, especially women and children

  13. The NFP Plan of Action • 26 areas of intervention and 314 actions • Fully consistent with the PRSP and other relevant policies (e.g., agricultural policy), the PoA provides: • a framework to coordinate government interventions • a reference for development support to food security to be in line with the Paris Declaration on aid effectiveness (alignment, ownership, etc.) Developed by 12 government agencies led by the FPMU through a wide consultation process involving main Government actors and other stakeholders

  14. Informed policy making for FS In order to be effective, policy decisions on food security need to be based on: • reliable, complete and timely information • analysis of the information relevant to policy making • scientific knowledge from research • dialog with stakeholders in civil society

  15. The NFPCSP Research Grant Scheme Completed Research: 14 CF, 8 PR: reports being finalized On-going research: 11 PR, 11 PR (initiated in 2008) Funding: almost US$ 1.2 million contracted 78% disbursed Research areas: production and availability; Utilization/Nutrition; Economic Access; Physical and Social Access; Cross cutting issues (environment, gender, governance, etc.)

  16. Purpose of the Workshop • Discuss findings of 8 completed programresearches with a focus on policy implications • Present through poster paper progress of 22 other research grants (11 CFs + 11 PRs) undertaken at the end of 2007 • Promote dialogue among researchers and between researchers and policy makers in support of decision making

  17. Studies to be discussed today 1 (BIDS). Instability in food production and prices, nature of food markets , impact and policies 2 (BSMRA). Impacts of anthropogenic activities on natural resources and food security in the coastal region 3 (BIDS). Impact of Paid Employment and Self-Employment on Income and Prospects of Household Food Security4(BAU): Changing land use patterns and their impact on food security for farm households in Bangladesh5 (CASEED): implementation status and effectiveness of the new agricultural extension policy (NAEP) for technology adoption6 (BRF). Price stabilization, market integration and consumer welfare in Bangladesh7 (CAB): Institutionalization of healthy street food system in Bangladesh: A pilot study in Dhaka City 8 (BAU): Capacity strengthening of rural women in carrying out post harvest activities (PHA) of vegetables and fruits

  18. Thank you !

  19. The NFP Plan of Action • 26 areas of intervention and 314 actions • Fully consistent with the PRSP and other relevant policies (e.g., agricultural policy), the PoA provides: • a framework to coordinate government interventions • a reference for development support to food security to be in line with the Paris Declaration on aid effectiveness (alignment, ownership, etc.) Developed by 12 government agencies led by the FPMU through a wide consultation process involving main Government actors and other stakeholders

  20. The PoA: Highlights • Improving productivity and efficiency of domestic food production • Research and extension, inputs, water management credit & insurance, market infrastructure, marketing, etc. • Reduce vulnerability to price and other shocks and protect vulnerable people’s access to food • Price support and stabilization, public stock management, Early Warning, etc. • Disaster Management, PFD & safety nets, income generation, MSMEs development, skills development, etc. • Sustain programs for reducing malnutrition • balanced food, nutrition education, supplementation and fortification, food safety, women and children health

  21. NFPCSP: Project Formulation and Partners • developed alongside the National Food Policy • Initially: 3 donors for a 5 year project Now: Phase I : 2 donors for 3 years (till end 2008) Phase II: 2 donors for 4 years (till end 2012) PARTNERS Donors: • GoB: • FPMU • 11 Ministries/Dept FAO: Implementing Technical Agency

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