SYRIAN ARAB REPUBLIC

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SYRIAN ARAB REPUBLIC Ministry of Agriculture and
Agrarian Reform National Agricultural Policy
Center
Food Security and High International Market
Prices Issues of Concern for Syria
Atieh El Hindi Director NAPC
International Workshop, Damascus 1-2/7/2008
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1. Introduction

• Food security has been one of the main objectives
  of the development strategies applied in Syria.
• The policies and plans aimed at increasing self
  sufficiency of the main food staples.
• These policies were accompanied with support
  actions such as input and output subsidies and
  agricultural services
• Since mid 80s a process of gradual subsidies
  elimination/reduction was initiated.

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food security strategy applied in the Syrian Arab
Republic

• 1. Improve the purchasing power
• Produce food commodities that have competitive
  advantage.
• Improve agricultural marketing services and
  increase agricultural trade flow.
• 2. Ensure accessibility to food by vulnerable
  segments.
• 3. Ensure price stability.
• 4. Improve food products quality.

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3. the main achievements made in the process

• The contribution of agriculture to GDP was 25
  with an annual growth rate of 4-5.
• Despite the general improvement of agricultural
  production, it witnessed variation due to rain
  fall fluctuation.
• Agricultural trade growth rate during 2000-2006
  was 8.9.
• Agricultural trade contribution was 12-20.
• Economic growth had a positive impact on food
  security in general (3200 calories on average).
• The per capita calorie intake is acceptable in
  general terms.

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4. Evolution of international prices

• significant increase in the agricultural
  commodities prices
• accelerated dramatically during 2007 and the
  first months of 2008
• Due to various reasons

• Reduced production of main food commodities
• unfavorable weather conditions,
• recurrent droughts, Increased income in India and
  China which resulted in the increase of food and
  fodder consumption.

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• Considerable increase of international oil prices
  
• Population increase, particularly in poor
  countries
• The use of agricultural products for bio-fuel
• Emergence of huge production companies and
  international monopoly
• the FOB price index of the main food products in
  2000-2007 ranged between 123-226, regardless of
  the transport cost increase
• Further increase in the first months of 2008

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5. Local price increase

• Considerable increase in 2007 and the beginning
  of 2008 due to international prices and
  unfavorable weather conditions.
• average price increase between February 2007 and
  February 2008 was around 50

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• Local price increase result from

• Trade openness
• and import of many inputs from the international
  markets
• Increase of Syrian products exports as a result
  of the international price increase
• Demand increase due to the increase of visitors
  from other countries
• Cost of production increase

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6. impact of price increase on food security

• statistics indicate the Syrians spend 42 of
  their income on average on food
• Flexibility of changing other expenses is quite
  limited (housing, education, health care,
  communication and other services)
• The price increase had a negative impact on food
  security, particularly for vulnerable segments
• The situation worsened further due to the diesel
  price increase which accounts for 15-25 of the
  cost.

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7. actions taken by the government to mitigate
the impact of price increase on food security
Income increase and price control measures

• Public employees salaries and wages were
  increased by 25.
• Local currency was linked to the foreign
  currencies basket.
• The role of the state in the provision of main
  food stables was enhanced
• Strict control was imposed on agricultural
  exports
• Export of main food staples were suspended

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Legislations
Legislative decree no. 29 of 2008 was issued to
establish an agricultural subsidies fund that
will cover the following
- production inputs

• improved seeds distributed by the public
  institutions
• seedlings (fruit, forest, and pastoral)
• veterinary medicines, artificial insemination
  requirements and vaccinations

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prices of some agricultural products
- strategic crops wheat, cotton, barley and
sugar beet - plant and livestock products whose
production should be enhanced by the government
The agricultural subsidy fund will be
operationalized at the beginning of 2009.
Currently, actions are taken to assign its
management board and director.
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Actions taken to ensure delivery of produced
crops to the state companies
1. increase of the strategic crops prices

• producers were offered better prices to ensure
  delivery of their products to the state companies
  in order to replenish the strategic stock,
  particularly for wheat

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Decisions issued to guarantee delivery

• Several decisions were made to ensure delivery to
  the state companies for considerations related to
  food security.
• The main objectives of these decisions were to
• prevent private trading of wheat, prevent farmers
  form keeping a stock that exceed their household
  consumption needs
• prevent illegal movement of wheat between
  governments so as to control smuggling.

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Thank You