Policy errors in Sri Lanka have adversely affected the country's food security.
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Sri Lanka's human development and socio-economic index has always been ahead of neighboring South Asian nations. Since the end of Yadavi in Sri Lanka in 2009, we have seen significant progress in Sri Lanka's human development index, literacy rate and health-related indicators. According to the World Bank, the poverty rate in Sri Lanka is as low as 0.77 per cent in the South Asian region. Poverty in Sri Lanka is significantly lower than in India at 13.42 per cent, Bangladesh at 15.16 per cent and Pakistan at 5.23 per cent. Sri Lanka also aims to make a national contribution to achieve the goal of sustainable development by 2030.
This progress can be attributed primarily to safety initiatives such as the 'Samrudhi' program, which provides free education and free health care to all citizens. However, despite progress, the launch of the Covid-19 has created a trade deficit of more than US ३ 3 billion in Sri Lanka, with interest accumulated over US ७ 78 million. By May 2022, foreign exchange reserves had fallen from ७ 7,600 million to ३ 2,311 million. Export revenue fell by 3.4 per cent to १५ 915.3 million in April 2022 from ० 1,057 million in March 2022. By contrast, spending on medical and healthcare increased by 33.1 per cent between 2019 and 2021, mainly due to Kovid-19. Foreign exchange due to tourism and migrant workers has shaken the national economy. At present, food inflation is 57 per cent.
Sri Lanka lost its top spot in Asia's food security index in 2016-2017, dropping to 11th place by mid-2022. Food security is undoubtedly an important factor in the long-term socio-economic development of the country. Today, due to the economic crisis that has arisen, Sri Lanka is experiencing food insecurity in two ways: on the one hand, growing human unrest, agitation and long queues for food; On the other hand, their dependence on foreign countries for loans and aid has increased.
However, despite changing climatic conditions and environmental conditions, Sri Lanka increased production significantly and faced the Corona epidemic, so the Kovid-19 epidemic could be partly responsible for food insecurity. The lockout or other Kovid-19 restrictions had a minor impact on the agricultural sector. During the Corona outbreak, Sri Lanka had a significant crop of rice and tea, so the Corona effect was minimal.
Political mistakes
Rice is the staple food of Sri Lanka, which largely meets the caloric needs of rural poor families. Sri Lanka has been self-sufficient in rice since 2010 and produces an average of 9 lakh metric tonnes of fruits and vegetables annually. Thus, the availability of foodgrains in the country was ensured and the price of foodgrains was in the affordable range. However, in the aftermath of Kovid-19 and the growing economic crisis, Sri Lanka was deprived of food security due to two policy flaws. The first error is that in 2016-2017, the fertilizer subsidy given to farmers was changed to a coupon system. In the past, for decades, farmers have been subsidized for the purchase of nitrogen, phosphorus and potassium fertilizers in order to get good returns, even if they are sold at a lower price. Because of this strategic decision, rice, The availability of fruits and vegetables at affordable prices helped those with low incomes. Unfortunately, after the change in policy, farmers used coupons to buy other non-agricultural essentials, which led to a sharp decline in Sri Lanka's main crop production season, 'Yala' and 'Maha'. Increased drought exacerbated the situation. As a result, the decline in rice and vegetable production was offset by imports.
The second mistake is that the current president, Gotabaya Rajapaksa, made an irrational decision in May 2020 to ban chemical fertilizers and agro-chemicals under the slogan 'Organic Farming'. However, no alternative mechanism or infection strategy was developed to produce sufficient organic manure and to combat potential disease / pest attacks. The country lacked adequate organic raw materials, technology and alternatives to tackle farm problems. As a result, low crop productivity and pest and disease attacks caused farmers to lose their crops, forcing many to move to retail jobs in the industrial / construction sector. The impact of this decision is still being felt at a time when skyrocketing inflation is making it impossible to get foodgrains. Although the ban on agrochemicals was lifted in November 2021, the effects of the ban will continue. The decline in fruit and vegetable production by 35 per cent and grain production by 40 per cent in 2020-2021 is indicative of a future decline. Tea production, the largest foreign exchange earner, has declined by about 50 per cent.
Gotabaya Rajapaksa made an irrational decision in May 2020 to ban chemical fertilizers and agro-chemicals under the slogan 'Organic Farming'. However, there was no mechanism or infection strategy to produce adequate organic manure and to deal with potential disease / pest attacks.
Since independence in 1948, Sri Lanka has been plagued by policies designed for a specific purpose. However, recent policy changes- e.g. The country has been plagued by undesirable tax cuts, bans and grants and a lack of national policy, long-term planning and political commitment to implementation. Besides, consumers can no longer afford food choices. Prior to the financial crisis, per capita rice consumption declined from 163 kg to 101 kg during 2015-2021. Eating habits have changed since mainly wheat flour based products became popular, wheat flour based products are completely imported products.
In addition, increased dependence on imported food items accounted for 15.9 per cent of GDP. These included large quantities of wheat flour, milk powder, pulses and many other foods in great demand in Sri Lanka. This has added to the insecurity. Consumption of wheat flour has declined by 45 per cent since mid-2021 due to inflation. Therefore, the question arises as to whether Sri Lankan citizens can support their new purchasing power practices in the face of the economic crisis.
If such economic conditions persist, it is clear that in the coming months, families will move from temporary food insecurity to long-term food insecurity. The mismanagement of resources (land, labor and capital) and finance has had a serious impact on key economic sectors such as agriculture, fisheries and trade, including government policy measures such as tax cuts, which seek to solve short-term problems rather than long-term ones. Sri Lanka is facing a severe energy crisis today, which has led to shortages of fuel and gas, as well as hours of power outages.
It is now clear that Sri Lanka has opted to ignore the International Monetary Fund (IMF) crisis signal and resorted to undesirable measures such as increasing the money supply, further devaluing the Sri Lankan rupee and causing a record devaluation of 364.
As a result of the financial crisis, many small businesses have become loss-making and people have lost their livelihood. In addition, the energy crisis has disrupted the food supply chain. Large-scale imports of essential foodgrains have been stopped. Protein-rich foods such as eggs, meat, pulses and milk are no longer affordable to low-income groups, putting vulnerable groups such as children, the elderly and pregnant women at risk of food and nutritional insecurity. This will further increase the already high rate of malnutrition - Sri Lanka has the highest rate of malnutrition in the world at 15 per cent.
In addition, anemia can increase in women and malnutrition can have serious consequences for future generations. Neglected vulnerable poor groups, such as farm laborers and hospitalized patients, are at risk of not getting the food they need.
Despite favorable climate for agriculture, fertile soil, high biodiversity and genetic reserves, Sri Lanka is currently importing most of the raw materials such as seeds, agro-chemicals, machinery and technology. Due to its dependence on imports, Sri Lanka has to face frequent fluctuations in world prices and limitations in availability and quality. The economic crisis cut off the supply of these raw materials for agriculture, especially urea. Urea is the only synthetic nutrient for crop growth. The unavailability of urea affects the overall crop yield, so there is not enough production.
The ongoing conflict between Ukraine and Russia has added to the crisis. Ukraine, the world's largest wheat producer, and Russia, the world's largest urea producer, have cut supply in the global market, pushing up prices in the international market. The impact of the exchange rate crisis and the economic crisis has doubled in Sri Lanka. The price of a 50 kg bag of urea has increased six-fold from १६ 16 to १४ 140 by 2021 to mid-2022, making farming challenging. As food, medicine, fuel and gas prices continue to rise and face severe shortages, the urban community, especially the poor, has been hit hard.
It is now clear that Sri Lanka has opted to ignore the International Monetary Fund (IMF) crisis signal and resorted to undesirable measures such as increasing the money supply, further devaluing the Sri Lankan rupee and causing a record devaluation of 364.
Responses and solutions
In Sri Lanka, farmers are being urged to return to paddy farming and a number of practical measures have been taken to increase food production, including cultivation of arable land and urban gardening. Sri Lanka is an island with sea on all sides. With this in mind, attention should be paid to supporting the fishing industry, which can be a source of rich protein for the nation.
Taking immediate action, Sri Lanka has requested food assistance from the South Asian Food Bank, with the support of SAARC, and expects the sale of 1 lakh metric tonnes of food in the form of donations or concessions. Sri Lanka has also appealed to neighboring countries for help. India, China and Japan have already provided financial assistance, flexible credit options as well as food aid, and are expected to provide loans and essential commodities.
The Sri Lankan government is expected to increase the value-added tax (VAT) from 8 per cent to 12 per cent and raise corporate taxes to increase government revenue by Rs 65 billion to reduce debt. The government needs to make some policy changes and decisions, which will help the low-income group to recover from the financial crisis quickly by providing cash as well as funding and alternative opportunities to provide them with a social security system. [1]. It is necessary to help the urban and rural poor through favorable policies and programs, as their struggles are different. Nutrition security is at stake, therefore, it is necessary to implement activities such as provision of meals for school children, awareness of consumption, low cost purchasing power patterns, gardening and dietary diversification. Plans should be made to strengthen distribution channels, improve the use of public transport, provide financial assistance to producers, connect markets and create marketing opportunities. Reducing the burden on households through concessions on bills for essential services, delay in repayment of loans, etc. can have a greater impact on household budget estimates. Both the formal and informal sectors need to be supported to bring long-term balance to the economy.
Adherence to such measures may be short-term strategies to address the growing food crisis. Important needs in the agricultural sector, including urea and other major raw materials, must be prioritized. Provision of funds and loan facilities for purchase of fertilizers and seeds, partial and full subsidy for fertilizers as required as well as other agricultural raw materials is proposed. A significant percentage of agro-based export earnings must be diverted to the agricultural sector to purchase the required raw materials. As Sri Lanka is expected to face a number of crises in the coming months, international assistance, both financial and non-financial, is needed to increase agricultural productivity, as well as employment opportunities and labor productivity. The government is also promoting urban gardening and awareness programs for food security. National Agricultural Policy, Land Use Management, In addition to suggestions for raising the living standards of farming families, promoting value addition from locally available fruits and vegetables, seed production and environmentally friendly fertilizer facilities, technology transfer, research and development. Value addition and ways to reduce post-harvest losses are suggested. The effects of climate change also pose a threat to Sri Lanka's food security and nutrition. Therefore, Sri Lanka needs to take these precautionary measures and prioritize policies to overcome the problems and emerge as a strong nation. The effects of climate change also pose a threat to Sri Lanka's food security and nutrition. Therefore, Sri Lanka needs to take these precautionary measures and prioritize policies to overcome the problems and emerge as a strong nation. The effects of climate change also pose a threat to Sri Lanka's food security and nutrition. Therefore, Sri Lanka needs to take these precautionary measures and prioritize policies to overcome the problems and emerge as a strong nation.
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