Pakistan's Dietary Habits and Sugar Crisis


World raw sugar futures hit a 28-year high of 23.52 cents a pound last week as the fears of a bad sugarcane harvest grew stronger. The key background factor is the continuing scarce supply scenario in the global market because of weather factors, particularly in India, the second largest producer of sugarcane, according to the Wall Street Journal. While India is dealing with too little monsoon rain, the largest sugar producer Brazil is being hurt by too much rain.

At 4.89 million tons of annual sugar production, Pakistan is the tenth largest sugar producer in the world, and yet it has to import sugar, exposing it to the effects of sugar shortages and rising prices in the world. Pakistanis consume over 25 Kg of sugar per person versus India's 20Kg. Sugar cost Rs 25 per Kg (30 US cents) at the start of 2009 and now costs more than Rs 50, says independent economic analyst A.B. Shahid. The most pessimistic estimates show a 23 percent decline in sugar crop production this year. While last year Pakistan produced 4.7 million tons, farmers are on track to produce 3.2 million tons this year. That means a severe shortfall as annual national consumption is 4.2 million tons.

Both sugar production and per capita consumption as well as overall calorie intake have been rising in Pakistan. In the last four decades, per capita calorie intake in Pakistan has grown from 1750-2450 (kilo)calories with an average annual growth rate of 0.90%. Nevertheless, 20% of Pakistan's population is still undernourished. Sugar consumption has been showing an increasing trend for the last 15 years. It has increased from 2.89 million tons in 1995-96 to 3.95 million tons in 2005-06. One of the many reasons behind this increase is rise in the total population of the country, which has reached 170 million. The per capita sugar consumption data shows that it has also risen from 22.2 kg in 1995 to 25.8 kg in 2004-05. For 2008-09, the overall sugar consumption is forecast at over 4 million tons, which is less than the target production. But the government is importing about 300,000 tons of sugar to ensure availability of sufficient stock to cover any shortfalls from the usual smuggling to Afghanistan which remains a fact of life in Pakistan.

In addition to relatively large sugar consumption, Pakistanis also consume significantly higher amounts of meat, poultry and milk products than other South Asian nations, getting more protein and almost half their daily, per capita calorie intake from non-food-grain sources.

The fact that Pakistanis have a sweet tooth is not lost on the nation's ruling elite, particularly the powerful political families and the Pakistani military. While the military owns Fauji sugar mills, more than 50% of the sugar in Pakistan is produced in sugar mills owned by the most powerful politicians of all major parties and their families.

The mills reported to be owned by President Asif Ali Zardari’s family and the ruling PPP leaders include Ansari Sugar Mills, Mirza Sugar Mills, Pangrio Sugar Mills, Sakrand Sugar Mills and Kiran Sugar Mills. Ashraf Sugar mills is owned by PPP leader and incumbent ZTBL President Ch Zaka Ashraf.

Kamalia Sugar Mills and Layyah Sugar Mills are owned by PML-N leaders. Former minister Abbas Sarfaraz is the owner of five out of six sugar mills in the NWFP. Nasrullah Khan Dareshak owns Indus Sugar Mills while Jahangir Khan Tareen has two sugar mills; JDW Sugar Mills and United Sugar Mills. PML-Q leader Anwar Cheema owns National Sugar Mills while Chaudhrys family is or was the owner of Pahrianwali Sugar Mills as it is being heard that they have sold the said mills. Senator Haroon Akhtar Khan owns Tandianwala Sugar Mills while Pattoki Sugar Mills is owned by Mian Mohammad Azhar, former Governor Punjab. PML-F leader Makhdoom Ahmad Mehmood owns Jamaldin Wali Sugar Mills. Chaudhry Muneer owns two mills in Rahimyar Khan district and Ch Pervaiz Elahi and former Minister of State for Foreign Affairs, Khusro Bakhtiar have shares in these mills.

Among other basic food commodities, per million population wheat consumption in Pakistan is 115,000 metric tons versus 63,000 metric tons in India, according to published data.

According to the FAO, the average dairy consumption of the developing countries is still very low (45 kg of all dairy products in liquid milk equivalent), compared with the average of 220 kg in the industrial countries. Few developing countries have per capita consumption exceeding 150 kg (Argentina, Uruguay and some pastoral countries in the Sudano-Sahelian zone of Africa). Among the most populous countries, only Pakistan, at 153 kg per capita, has such a level. In South Asia, where milk and dairy products are preferred foods, India has only 64 kg and Bangladesh 14 kg. East Asia has only 10 kg.

While it remains very low by world standards, meat and poultry consumption has also increased significantly in Pakistan over the last decade. Per capita availability of eggs went from 23 in 1991 to 43 in 2005, according to research by N. Daghir. Per capita meat consumption in Pakistan now stands at 12.4 Kg versus India's 4.6 Kg.

In spite of South Asia's growing horticulture industry, the intake of fruits and vegetables in India and Pakistan is surprisingly low at less than 100 grams per day per capita, according to the World Health Organization. This figure is far lower than the 300 grams of fruits and vegetables per person in Australia, EU and the US.

While the average per capita calorie intake of about 2500 calories is within normal range, nutritional balance necessary for good health appears to be lacking in Pakistanis' dietary habits. One way to alleviate the sugar crisis in Pakistan is to reduce sugar consumption and substitute it with greater intake of fruits and vegetables. There is an urgent need for better health and nutritional education through strong public-private partnership to promote healthier eating in Pakistan.

Related Links:

Agricultural Diversification in South Asia

Nutrition in Pakistan

FAO Report on Food Consumption Patterns

Wheat Consumption in India and Pakistan

World of Sugar

Pakistan's Livestock Farming

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Comment by Riaz Haq on April 13, 2021 at 1:09pm

UNDP: Elite privilege consumes $17.4bn of #Pakistan’s #economy. Top beneficiaries are corporate sector (tax breaks, cheap input prices, higher output prices, access to capital, land) – 2nd & 3rd biggest recipients of privilege are richest feudal landlords https://aje.io/dvkng

The UNDP’s Wignaraja noted that this creates a paradox where those responsible for doling out the privileges were also those who were receiving them.

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The biggest beneficiary of the privileges – which may take the form of tax breaks, cheap input prices, higher output prices or preferential access to capital, land and services – was found to be the country’s corporate sector, which accrued an estimated $4.7bn in privileges, the report says.

The second and third-highest recipients of privileges were found to be the country’s richest 1 percent, who collectively own 9 percent of the country’s overall income, and the feudal land-owning class, which constitutes 1.1 percent of the population but owns 22 percent of all arable farmland.

Both classes have strong representation in the Pakistani Parliament, with most major political parties’ candidates’ drawn from either the feudal landowning class or the country’s business-owning elite.
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Economic privileges accorded to Pakistan’s elite groups, including the corporate sector, feudal landlords, the political class and the country’s powerful military, add up to an estimated $17.4bn, or roughly 6 percent of the country’s economy, a new United Nations report has found.

Released last week, the UN Development Programme’s (UNDP) National Human Development Report (NHDR) for Pakistan focuses on issues of inequality in the South Asian country of 220 million people.

The report uses the prism of “Power, People and Policy” to examine the stark income and economic opportunity disparities in the developing country.

“Powerful groups use their privilege to capture more than their fair share, people perpetuate structural discrimination through prejudice against others based on social characteristics, and policies are often unsuccessful at addressing the resulting inequity, or may even contribute to it,” says the report.

Kanni Wignaraja, assistant secretary-general and regional chief of the UNDP has been on a two-week “virtual tour” of Pakistan to discuss the report’s findings, holding talks with Prime Minister Imran Khan and other top members of his cabinet, including the ministers of foreign affairs and planning.

She says Pakistani leaders have taken the findings of the report “right on” and pledged to focus on prescriptive action.


“[In our remarks in meetings] we focused right in on where […] the shadows are, and what is it that actually diverts from a reform agenda in a country,” she told Al Jazeera in an exclusive interview.

“My hope is that there is strong intent to review things like the current tax and subsidy policies, to look at land and capital access.”

----------------------

The country’s powerful military, which has directly ruled Pakistan for roughly half of its 74-year history, was found to receive $1.7bn in privileges, mainly in the form of preferential access to land, capital and infrastructure, as well as tax exemptions.
The report noted, however, that Pakistan’s military is also “the largest conglomerate of business entities in Pakistan, besides being the country’s biggest urban real estate developer and manager, with wide-ranging involvement in the construction of public projects”.

“These things are not neatly separate entities,” said Wignaraja. “You do see some of… these are overlapping so you almost get a double privilege by the military. The minute in a country the military is a part of big business, it obviously doubles the issue and the problem.”

In a country like Pakistan, where the military continues to hold power over many aspects of governance, she warned that it would take “almost a social movement” to displace structures of power that were so entrenched.

Comment by Riaz Haq on May 21, 2022 at 12:02pm

Palm Oil Imports by Country
by Daniel Workman

https://www.worldstopexports.com/palm-oil-imports-by-country/

International purchases of imported palm oil cost an estimated total US$33.8 billion in 2020.

Overall, the value of palm oil imports increased by 19% for all importing countries since 2016 when international purchases of palm oil cost $28.4 billion. From 2019 to 2020, globally imported palm oil appreciated 12%.

An edible vegetable oil, palm oil is derived from the reddish pulp of oil palm plant fruit. Palm oil is a highly saturated vegetable fat used for lower-cost cooking, blending into mayonnaise and as a butter substitute. Palm oil is also an ingredient for biodiesel fuels.

The 5 biggest importers of palm oil (India, China, Pakistan, Netherlands, Spain) bought 43.2% of total palm oil purchased via international markets in 2020.

From a continental perspective, Asian countries imported the highest dollar worth of palm oil during 2020 with purchases valued at $17.7 billion or over half (52.3%) of the global total. In second place were European importers at 24.8% while a fast-growing 15.7% of palm oil imported worldwide was delivered to Africa.

Smaller percentages went to customers in North America (4.3%), Latin America (2.5%) excluding Mexico but including the Caribbean, and Oceania (0.3%) led by Australia and New Zealand.

For research purposes, the 4-digit Harmonized Tariff System code prefix is 1515 for palm oil and its refractions, whether or not refined.

India: US$5.1 billion (15.1% of total imported palm oil)
China: $4.1 billion (12.2%)
Pakistan: $2.1 billion (6.2%)
Netherlands: $1.9 billion (5.5%)
Spain: $1.4 billion (4.1%)
Italy: $1.2 billion (3.7%)
United States: $1.1 billion (3.2%)
Bangladesh: $896.9 million (2.7%)
Kenya: $829.6 million (2.5%)
Russia: $793.2 million (2.3%)
Egypt: $732.5 million (2.2%)
Vietnam: $694.7 million (2.1%)
Malaysia: $657.1 million (1.9%)
Myanmar: $645.3 million (1.9%)
Germany: $599.1 million (1.8%)
Among the above countries, the fastest-growing markets for palm oil since 2019 were: Myanmar (up 660.4%), Kenya (up 59.2%), Vietnam (up 30.8%) and Italy (up 20.2%).

Only one top country posted a decline in its imported palm oil purchases namely India thanks to its -5.4% drop.

By value, the listed 15 countries purchased 67.4% of all palm oil imported in 2020.

Comment by Riaz Haq on May 21, 2022 at 12:02pm

Tea Imports by Country
by Daniel Workman

https://www.worldstopexports.com/tea-imports-by-country/

Global purchases of imported tea totaled US$6.7 billion in 2020.

The overall value of tea imported by all buyer countries shrank by an average -2.1% since 2016 when tea purchases cost $6.8 billion. From 2019 to 2020, the total dollar amount for imported tea slipped by -5.5% from 2019 to 2020.

The 5 most valuable import markets for tea (Pakistan, United States, Russia, United Kingdom, Saudi Arabia) accounted for almost a third (31.1%) of the worldwide sales of imported tea in 2020.

From a continental perspective, Asian countries bought the most imported tea during 2020 with purchases costing $2.9 billion or 43.7% of the worldwide total. In second place were European countries at 29.3% while 14.4% of all tea imports were delivered to customers in Africa.

Smaller percentages went to North America (9.1%), Oceania (2%) led by Australia and New Zealand, and Latin America (1.5%) excluding Mexico.

For research purposes, the 4-digit Harmonized Tariff System code prefix for tea is 0902.
Tea Imports by Country

Below are the 15 countries that imported the highest dollar value worth of tea during 2020.
Pakistan: US$589.8 million (8.9% of total imported tea)
United States: $473.8 million (7.1%)
Russia: $412.2 million (6.2%)
United Kingdom: $348.7 million (5.2%)
Saudi Arabia: $243.6 million (3.7%)
Iran: $236.3 million (3.5%)
Hong Kong: $221.8 million (3.3%)
Morocco: $202.3 million (3%)
Egypt: $197.2 million (3%)
Germany: $195 million (2.9%)
China: $180 million (2.7%)
France: $168.1 million (2.5%)
United Arab Emirates: $164.9 million (2.5%)
Japan: $156.6 million (2.4%)
Iraq: $134.7 million (2%)
Among the above countries, 4 markets for tea imports grew since 2019 namely: Hong Kong (up 19%), Pakistan (up 18.7%), Saudi Arabia (up 2.9%) and France (up 0.7%).

Those countries that posted declines in their imported tea purchases were led by: Iran (down -39.9%), Egypt (down -28.7%), Iraq (down -23%) and United Arab Emirates (down -21.7%).

By value, the listed 15 countries purchased 58.9% of all tea imported in 2020.

Comment by Riaz Haq on May 21, 2022 at 12:55pm

Pakistan to pursue tea plantation on commercial scale
Plans to cultivate tea an area of about 25,000 acres over next five years


https://tribune.com.pk/story/2314494/pakistan-to-pursue-tea-plantat...

While pursuing tea plantations on a commercial scale, the government of Pakistan has decided to cultivate tea on an area of about 25,000 acres over the next five years.

“This year we are going to approve a project where we are growing tea on an area of 25,000 acres; we are creating history; we plan to complete the proposed tea plantations over the next five years,” said Special Assistant to Prime Minister on Food Security Jamshed Iqbal Cheema during his visit to the National Tea and High-Value Crops Research Institute (NTHRI) at Shinkiari, Mansehra.

On the recommendation of Chinese tea experts, the National Tea Research Institute (NTRI), later renamed as NTHRI, was set up on 50 acres of land in Shinkiari in 1986. NTHRI is playing a crucial role in promoting tea cultivation in the country.

Out of the proposed 25,000 acres of land, 10,000 are government-owned forests; 12,000 acres are private land where the Forest Department has planted forests while 3,000 acres of land have been identified in Azad Kashmir. During the next phase, the tea plantation would be extended to all tea-cultivable land of the country, as per the government plan.

Read Over 3m saplings to be planted in Pindi

Pakistan has great potential for growing tea, according to Cheema, as the country has 178,000 acres of tea cultivable land. “Pakistan can grow its own tea,” he said, adding that the country imported 30 million tonnes of tea each year from 15 different tea-producing countries.

Cheema said Pakistan spent Rs90 billion annually on importing tea. The import value of black tea is Rs89 billion while Rs1 billion goes to green tea’s import.

While inviting private tea companies to invest in the tea sector, Cheema said, “We are ready to facilitate and solve any problems of the private companies regarding their investment.” The government is providing an opportunity to the private companies to invest and to promote the tea trade, which would also create thousands of jobs for the locals. The Ministry of Food Security has allocated Rs8.5 billion budget for high-value crops and cluster development.

According to experts, China from the beginning has played a crucial role in tea promotion in Pakistan. As potential suitable sites and land for tea cultivation are located alongside the China-Pakistan Economic Corridor (CPEC), China has a big role to play in promoting tea on a commercial scale through joint ventures and technical and financial support.

Comment by Riaz Haq on May 21, 2022 at 7:03pm

Our total consumption of wheat and atta is about 125kg per capita per year. Our per person per day calorie intake has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2,580 in 2020-21

By Riaz Riazuddin former deputy governor of the State Bank of Pakistan.


https://www.dawn.com/news/1659441/consumption-habits-inflation

As households move to upper-income brackets, the share of spending on food consumption falls. This is known as Engel’s law. Empirical proof of this relationship is visible in the falling share of food from about 48pc in 2001-02 for the average household. This is an obvious indication that the real incomes of households have risen steadily since then, and inflation has not eaten up the entire rise in nominal incomes. Inflation seldom outpaces the rise in nominal incomes.

Coming back to eating habits, our main food spending is on milk. Of the total spending on food, about 25pc was spent on milk (fresh, packed and dry) in 2018-19, up from nearly 17pc in 2001-01. This is a good sign as milk is the most nourishing of all food items. This behaviour (largest spending on milk) holds worldwide. The direct consumption of milk by our households was about seven kilograms per month, or 84kg per year. Total milk consumption per capita is much higher because we also eat ice cream, halwa, jalebi, gulab jamun and whatnot bought from the market. The milk used in them is consumed indirectly. Our total per person per year consumption of milk was 168kg in 2018-19. This has risen from about 150kg in 2000-01. It was 107kg in 1949-50 showing considerable improvement since then.

Since milk is the single largest contributor in expenditure, its contribution to inflation should be very high. Thanks to milk price behaviour, it is seldom in the news as opposed to sugar and wheat, whose price trend, besides hurting the poor is also exploited for gaining political mileage. According to PBS, milk prices have risen from Rs82.50 per litre in October 2018 to Rs104.32 in October 2021. This is a three-year rise of 26.4pc, or per annum rise of 8.1pc. Another blessing related to milk is that the year-to-year variation in its prices is much lower than that of other food items. The three-year rise in CPI is about 30pc, or an average of 9.7pc per year till last month. Clearly, milk prices have contributed to containing inflation to a single digit during this period.

Next to milk is wheat and atta which constitute about 11.2pc of the monthly food expenditure — less than half of milk. Wheat and atta are our staple food and their direct consumption by the average household is 7kg per capita (84kg per capita per year). As we also eat naan from the tandoors, bread from bakeries etc, our indirect consumption of wheat and atta is 41kg per capita. Our total consumption of wheat and atta is about 125kg per capita per year. Our per person per day calorie intake has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2,580 in 2020-21. The per capita per day protein intake in grams increased from 63 to 67 to about 75 during these years. Does this indicate better health? To answer this, let us look at how we devour ghee and sugar. Also remember that each person requires a minimum of 2,100 calories and 60g of protein per day.

Undoubtedly, ghee, cooking oil and sugar have a special place in our culture. We are familiar with Urdu idioms mentioning ghee and shakkar. Two relate to our eating habits. We greet good news by saying ‘Aap kay munh may ghee shakkar’, which literally means that may your mouth be filled with ghee and sugar. We envy the fortune of others by saying ‘Panchon oonglian ghee mei’ (all five fingers immersed in ghee, or having the best of both worlds). These sayings reflect not only our eating trends, but also the inflation burden of the rising prices of these three items — ghee, cooking oil and sugar. Recall any wedding dinner. Ghee is floating in our plates.

Comment by Riaz Haq on May 26, 2022 at 8:46pm

Edible oil: How double whammy of price hike is frying consumers


https://www.thenews.com.pk/print/957838-edible-oil-how-double-whamm...

During 2019, Pakistan imported 2.69 million tonnes of soybean and canola oilseed, valued at $1.10 billion. In addition to this, 2.55 million tonnes of palm oil and other byproducts were also imported during the same year, costing another $1.53 billion in the same year.

The import of oilseed swelled to 3.33 million tonnes in the 2021 calendar year with a price tag of $1.98 billion. Similarly, palm oil and other derivatives' imports during the same year ballooned to 2.98 million tonnes, costing $3.74 billion.

The ordeal of consumers because of the backbreaking inflation seems dying hard as prices are yet to peak, said market insiders. In the last couple of months of political instability alone, rupee has devalued to Rs193.70 or by 8.82 percent against dollar, which may further inflate the edible oil price by about Rs25/litre in the retail market in a fortnight or so.

The impact of recent three upward revisions in edible oil’s retail price is stated to be in addition to such cost escalation, according to market insiders.

Ban imposed by Indonesia on palm oil and other byproducts’ export, Ukraine-Russia war, and prolonged heatwave may also negatively contribute to the cost of edible oil, further straining the livelihoods of people in this part of the word.

In order to tame cooking oil prices, Pakistan needs to convert this crisis into an opportunity by incentivising cultivation of edible oil. Neighbouring India is doing the same and has succeeded in increasing domestic production.

It is a sheer lack of good governance that no specialised department exists in the public sector both at federal as well as provincial levels for the systematic promotion of oilseed crops in the country.

With Pakistan Oilseed Development Board’s (PODB) scope remaining drastically limited at national level and non-establishment of similar institutions at provincial levels following passage of 18th Amendment, all development work on edible oil sector came to a standstill.

Comment by Riaz Haq on June 9, 2022 at 5:08pm

Pakistan Economic Survey: Health & Nutrition 2021-22

https://www.finance.gov.pk/survey/chapter_22/PES11-HEALTH.pdf

Infant Mortality Rate (IMR) in Pakistan has declined to 54.2 deaths per 1,000 live births
in 2020 from 55.7 in 2019, while Neonatal Mortality Rate declined to 40.4 deaths per
1,000 live births in 2020 from 41.2 in 2019. Percentage of birth attended by skilled
health personnel increased to 69.3 percent in 2020 from 68 percent in 2019 (DHS & UNICEF). Maternal Mortality Ratio fell to 186 maternal deaths per 100,000 births in
2020, from 189 in 2019 (Table 11.1).
With a population growing at 2 percent per annum, Pakistan’s contraceptive prevalence
rate in 2020 decreased to 33 percent from 34 percent in 2019 (Trading Economics).
Pakistan’s tuberculosis incidence is 259 per 100,000 population and HIV prevalence rate
is 0.12 per 1,000 population in 2020.


Table 11.1: Health Indicators of Pakistan
2019 2020
Maternal Mortality Ratio (Per 100,000 Births)* 189 186
Neonatal Mortality Rate (Per 1,000 Live Births) 41.2 40.4
Mortality Rate, Infant (Per 1,000 Live Births) 55.7 54.2
Under-5 Mortality Rate (Per 1,000) 67.3 65.2
Incidence of Tuberculosis (Per 100,000 People) 263 259
Incidence of HIV (Per 1,000 Uninfected Population) 0.12 0.12
Life Expectancy at Birth, (Years) 67.3 67.4
Births Attended By Skilled Health Staff (% of Total)** 68.0 (2015) 69.3 (2018)
Contraceptive Prevalence, Any Methods (% of Women Ages 15-49) 34.0 33
Source: WDI, UNICEF, Trading Economics & Our World in data
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Food and nutrition

Calories/day 2019-20 2457 2020-21 2786 2021-22 2735

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Table 11.9: Availability of Major Food Items per annum (Kg per capita)
Food Items 2019-20 2020-21 2021-22 (P)**
Cereals 139.9 170.8 164.7
Pulses 7.8 7.6 7.3
Sugar 23.3 28.5 28.3
Milk (Liter) 168.7 171.8 168.8
Meat (Beef, Mutton, Chicken) 22.0 22.9 22.5
Fish 2.9 2.9 2.9
Eggs (Dozen) 7.9 8.2 8.1
Edible Oil/ Ghee 14.8 15.1 14.5
Fruits & Vegetables 53.6 52.4 68.3
Calories/day 2457 2786 2735
Source: M/o PD&SI (Nutrition Section)

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