August 1, 2008, New Delhi – The 15th Annual SAARC Summit, Starting at Colombo, Sri Lanka is being organized against the backdrop of global price hikes in food and energy which in turn are stoking inflationary pressures among SAARC countries .This is not only having a deleterious effect on the economy and industry of the region but is also impacting the less prosperous populace in the area by reducing their purchasing power owing to a fall in real income. Hence it has become imperative that the Summit works towards achieving inclusive growth in the region by formulating policies which would encourage food and energy security among SAARC member countries.

 

“Indeed, it is well known that in a region where more than 60 per cent of the population is dependant on agriculture, enhancing the productivity of the sector is not merely a matter of commerce but of ensuring livelihood and a pattern of rural life as well. At present this sector is suffering from declining agriculture investments, inadequate infrastructure, high pre- harvest and post-harvest losses, land degradation, absence of bio-security measures, paucity of inadequate managerial skills and credit, limitation of technology, among others. This leads to stagnation in farm production which not only affects the overall growth of the economy but also impacts food security as the welfare of majority of the populace dependant on agriculture”, said Mr. Krishan Kalra, Secretary General, PHD Chamber.

 

In order to achieve food security in South Asia it is imperative to have a balanced policy on price incentives, technology changes and institutional support for accelerated agricultural growth.  There is room for more sophisticated versions of technology to improve soil and water management which would help to secure higher yields. Moreover, the region could work towards pooling together scientific and natural resources for bringing about a second green revolution, perhaps including genetic modification of important cereal crops to improve crop production and nutrition in the region. China has already shown the way for introducing and popularizing hybrid rice variety. SAARC should not lag behind in such endeavors to improve its productivity from agriculture.

 

‘The proposal to create a food bank, which was mooted during the SAARC Summit in 2007 and which proposed to keep a stock of rice and wheat to be used during shortages and emergencies in the region, should be carried forward and ratified by all member countries. Similarly, the creation of a Regional Food Security Fund for use during exigencies should also be major step forward in the direction of food security’, said  Mr. Kalra.   

 

Alongside food security, another priority for development within the region is to achieve energy security. There is need for enhancing cooperation among members to meet the fast growing energy deficit in SAARC region in view of the projected high economic growth rates.

 

The SAARC member countries have substantial energy resources which need to be economically exploited not only for accelerating economic growth but also for ensuring economic prosperity and welfare of the people. For example, all members have large hydro-energy potential, of which only a fraction has so far been exploited. Similarly, Pakistan and India have large coal reserves. Bangladesh has large reserves of gas. The use of technology for harnessing the same within the region should be looked into, suggested Mr. Kalra.

 

Feasibility studies on benefits and constraints of energy trade; establishing transnational energy grid; imports through third countries via pipelines; sharing of information, know-how and expertise; promoting cooperation in CNG use in transport as also the development of a regional fund for commercial exploitation of available resources and accessing non-traditional energy sources should also form the agenda of the Summit to ensure energy security.