Inefficiencies in managing food

Strengthening agriculture via investment in tech, infrastructure, climate-resilient crops is essential

KARACHI:

Food security continues to be a critical issue in Pakistan, with persistent double-digit food inflation posing serious challenges to households and the agricultural sector alike. According to recent data from the Pakistan Bureau of Statistics (PBS), food inflation has remained stubbornly high, averaging over 35% during the first half of the fiscal year 2024. This sharp rise in food prices has not only strained the purchasing power of ordinary citizens but has also highlighted the inefficiencies in managing food crops and supply chains across the country.

With food inflation persisting at elevated levels, the cost of essential items such as wheat, rice, cooking oil, and vegetables has become prohibitive for many families. The rise in food prices disproportionately affects lower-income households, which spend a large portion of their income on basic necessities. A World Bank report noted that over 40% of Pakistan's population is now considered food insecure, as families struggle to afford adequate nutrition. This insecurity manifests in rising malnutrition rates, especially among children, with nearly 38% of children under five suffering from stunted growth, according to the United Nations Food and Agriculture Organisation (FAO).

The National Nutrition Survey 2023 found that rural populations, particularly in provinces like Sindh and Balochistan, are most severely affected by food insecurity. In these areas, families are often forced to reduce the quantity and quality of food consumed, leading to widespread micronutrient deficiencies. The World Food Programme (WFP) has warned that continued food inflation could push an additional five million Pakistanis into extreme poverty by the end of the year if adequate measures are not taken to stabilise food prices.

Pakistan's status as an agrarian economy has not insulated it from food security challenges. While agriculture contributes around 19.2% to the country's GDP and employs nearly 40% of the labour force, inefficiencies in crop management have exacerbated food inflation. Erratic weather patterns, inadequate irrigation systems, and outdated farming practices have severely impacted crop yields. According to the State Bank of Pakistan (SBP), wheat production dropped by 4.7% during the 2023-24 fiscal year, while rice and sugarcane output also faced significant declines.

The agriculture sector's reliance on traditional farming methods has hindered productivity growth, making it difficult for farmers to meet increasing domestic demand. The Food and Agriculture Organisation (FAO) estimates that Pakistan loses 15-20% of its total crop production annually due to poor post-harvest handling and storage facilities. These inefficiencies in the food supply chain contribute to price volatility, as food shortages drive prices higher in the marketplace.

Recognising the gravity of the situation, the Government of Pakistan has launched several initiatives aimed at addressing food security and stabilising food prices. In response to soaring wheat prices, the federal government approved the import of 2 million tonnes of wheat for the 2023-24 period to augment domestic supply. This step was accompanied by efforts to increase wheat procurement from local farmers by raising the minimum support price (MSP) to Rs4,000 per 40 kg, an initiative designed to encourage farmers to grow more wheat.

Furthermore, the Prime Minister's Kissan Package, announced in late 2023, allocated Rs1.8 trillion to support farmers and improve agricultural productivity. The package includes subsidies for fertilisers, interest-free loans for small farmers, and incentives for mechanised farming. The government has also introduced crop insurance schemes to protect farmers against losses caused by floods, droughts, and other climate-related disasters.

Another key government initiative is the "Ehsaas Nashonuma/Benazir Nashonuma" programme, which aims to tackle malnutrition by providing monthly stipends to mothers and children, along with nutritional supplements. This programme, run in collaboration with the WFP, targets the most vulnerable segments of society and is expected to reach seven million beneficiaries by the end of 2024.

In addition to these domestic efforts, Pakistan is working closely with international organisations such as the FAO and the World Bank to implement long-term solutions. These partnerships focus on promoting climate-smart agriculture, enhancing food storage infrastructure, and improving irrigation techniques to maximise crop yields.

To combat rising food prices and ensure long-term food security, the government must also address the inefficiencies in food supply chains. One major issue is the lack of adequate cold storage facilities, which leads to significant food waste. According to the Pakistan Horticulture Development and Export Company (PHDEC), up to 40% of perishable goods, including fruits and vegetables, are wasted due to poor storage conditions. Developing modern storage facilities and improving logistics could help reduce these losses and stabilise food prices.

The government has taken steps to improve food systems through the introduction of the National Food Security Policy, which emphasises increasing crop productivity, reducing post-harvest losses, and enhancing food distribution networks. This policy also encourages the adoption of modern farming technologies, such as drip irrigation and precision agriculture, to improve resource efficiency.

While the government has made progress in addressing food security challenges, more needs to be done to ensure that food inflation does not spiral further out of control. Strengthening the agricultural sector through investment in technology, infrastructure, and climate-resilient crops is essential to stabilising food prices and ensuring that Pakistanis have access to affordable, nutritious food. At the same time, improving market regulation to curb price manipulation and ensuring transparent distribution channels for food commodities could help protect consumers from future price shocks.

As Pakistan moves forward, the collaboration between the government, private sector, and international organisations will be key to achieving sustainable food security. By addressing the structural inefficiencies in the agriculture sector and ensuring fair access to food for all, Pakistan can mitigate the long-term impacts of food inflation and ensure a stable, secure food system for future generations.

THE WRITER IS A MEMBER OF PEC AND HAS A MASTER'S IN ENGINEERING