Water and Food Security Nexus Regional Gap Analysis
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Water and Food Security Nexus Regional Gap Analysis

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Dr. M. Ahmad, FAO Cairo

Dr. M. Ahmad, FAO Cairo

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  • The government of Sultanate of Oman subsidizes the electricity used in the agricultural activities. The subsidized price of electricity is about RO 0.010 per K.wat, where as the actual production costs of electricity in Oman is about 0.035 RO per k.wat. The DRC was calculated based on commercial rates charged to other sectors like industry. It is often argued that a higher tier of tariff which is production cost be used to assess the long term impact of electricity prices and will thus tell the long term vitality of our proposed alternative crops. The first scenario will thus asses the impact of actual production costs of electricity on economic efficiency measures or DRC of each crop. lemon, banana, potato, onion, dates and Rhodes Grass are highly sensitive crops to changes in the electricity price because these crops consumed huge quantities of ground water.

Water and Food Security Nexus Regional Gap Analysis Water and Food Security Nexus Regional Gap Analysis Presentation Transcript

  • Water and Food Security NexusRegional Gap Analysis(24-26 June , 2013, Cairo)International Conference on Polices and Food Security in Dry AreaDr. Mahmood AhmadFAO Consultant on agriculture water policySenior Policy Officer ,FAO Regional Office, Cairo (Retired)Demand Management or SupplyEnhancementCost of Water Development or Saving (Piasa/Cm)0 100 200 300 400 500 600 700 800 900Improve SurfaceIrrigationPromote Modern Irrigationchange CroppingPatternReduceWastageProgessive DomesticTariffDemandManagementWellFieldStorageDamsRechargeDamsDesalinizationsTaknkerImportsSupplyEnhancemnet
  • The Gaps• Gap1. There is a general weakness in scaling-up frommany successful case studies• Gap 2: Most of the (dis)incentives to water inefficiencylie outside of the water domain. The necessary multi-disciplinarily has not yet been mobilised• Gap 3: There is an absence of explicit food securitystrategies, for now and the future, to guide waterinterventions. In light of different (blend of) pathwaysavailable to countries
  • GAP 1: Food Security Policies changedovertime with water availability
  • FOOD SECURITY-NEXUSCHANGED WORLD FOOD EQUATION• Supply : Land Degradation, Water Scarcity,Inputs and Transport costs, Rising energy cost,Climatic changes, Farm structure, labour andtechnology• Demand : Globalization, Population Growth,Poverty, and inequality, consumption waterintensity, bio-engineering• Trade and Markets: Supermarket, financialmarkets, virtual water, policies
  • Agriculture PolicyEnergyTradeWater Valustion/ incentive StructureImproving productive & Allocative EfficiencyMarket Access for small farmersSubsidy Depleting GWShortage and High CostComparative and competitiveadvantage, virtual water, distortedglobal marketsFoodSecurity/Water
  • Low Risk AppetiteWeak MarketOrientationLow Investment/waterLow MarginsLow land & waterProductivityLow Value AdditionSmall Farmer Caught in vicious cycle ofunderdevelopment having impact onwater/FS nexusUnless we don’t provide himaccess to technology, creditand market, impactof water reforms very minimal
  • GAP Analysis: Role of Technology: Cost of Saving Water-case of Iranon the rate of return on the technology ----function of amount ofwater saved and cost of water paid by farmers0 0.02 0.04 0.06 0.08 0.1 0.12Cost of water of savingCost charged to farmersCost Saving Water $ per cubicmeter
  • Price is low and Impact…..
  • 2. Most of the (dis)incentives to water inefficiency lieoutside of the water domain.• Totally agree, but we need to prioritize whichare important, lets not distract ourselves fromkey areas which critical, doable, and hasimpact• Would briefly share our experience in theregion with• Agriculture Policy (Incentive structure)• Trade and Marketing• Energy policy
  • Agricultural Sector86Industrial9%Domestic5 %Apply Watersaving policies,strategies andtechnologiesto allsectors of theeconomyReallocationof water(Inter andIntrareallocation)End-User Efficiency“More crop per drop”Technically and politicallyrelatively to implementAllocative Efficiency“More jobs per drop”Technically simplebut socially and politicallycomplex to implementDemand Management PoliciesImplementationPakistan, India, Iran, Egypt, Syria, Sudan, CIS and YemenHigh: Morocco, Tunisia, Cyprus, and Sudan, Morocco,Cyprus and Malta
  • and in our view Value Chain Approachto develop a competitive Agriculture with focus to link smallfarmer to the market– a win win policy option for povertyreduction and agriculture growthInput Suppliers Farm ProductionWholesaleMarketsProcessorsExporters/importerRetailersConsumersKnowledge and InformationKey Issues to unlock water potentialEnergy, technology up gradation, credit and market access both to domestic and export marketsAgricultural PolicyChoice of TechnologyTraditional versusModern IrrigationProduce morewith less waterMinimize ProduceLossChain Dominated by MiddlemanFood/water losses are significantat post harvest and marketing levelsVirtual water
  • TomatoCabbageEggplantChickoPumpkinDate (H)Capsicumucumber (PGH)CucumberSquashRhodes GrassPeper (PGH)PeperDate (M)Water MelonDate (A)OnionPotatoBananaLemonMangoOrangeImpact of Energy Cost on Efficiency of Resource Use: Case of Al-Batinah region of OmanVery high sensitivecrops for changes inelectricity priceQuite lowsensitive cropsfor changes inelectricity price
  • Gap 3 : absence of explicit food security strategiesto guide water interventions in light of different(blend of) pathways available to countries• Yes we need develop a strategy to bridge present andfuture food gap with growing water scarcity• It is becoming a consensus that agriculture has toproduce more with less water• For food security there are good and bad news,• Good terms of trade for agriculture, news highinternational prices need to be transferred to farmer toproduce commodities with comparative andcompetitive advantage with sustainable advantage• Bad news, prices are not transferred to farmers andhigh cost food for consumers• These policy in place the virtual water can also be anoption
  • Massage to carry• For water food security to work, look at broader issuesof improving the competitiveness of value chain• The competitiveness also be inclusive for small farmerin providing access to technology, credit and markets• Focus on water demand management, the trade offestablished within and among improving productiveand allocative efficiency• For future actions/policy reforms in agriculture areimportant to water scarcity issues.• Analysis of water, agriculture, energy nexus,Potential of alternative renewable energy (solar) to runour agriculture tube wells and other farm machinery