BURMA: FOOD INSECURITY A GROWING CONCERN

UNCLAS SECTION 01 OF 03 RANGOON 000178 SENSITIVE SIPDIS STATE FOR EAP/MLS, INR/EAP, EEB, F, PRM DEPT PASS TO DEPT OF AGRICULTURE DEPT PASS TO USAID BANGKOK FOR USAID, USDA, REO PACOM FOR FPA TREASURY FOR OASIA E.O. 12958: N/A TAGS: EAGR ECON EFIN PREL PGOV BM SUBJECT: BURMA: FOOD INSECURITY A GROWING CONCERN RANGOON 00000178 001.2 OF 003 Summary -------------- ¶1. (SBU) Although Burma's overall production of basic foodstuffs -- rice, beans, and cereals - is more than enough to meet domestic need, the GOB's restrictions on internal food distribution, as well as its emphasis on exporting food for profit, prevent sufficient domestically available food from reaching the more than five million Burmese who live below the food poverty line. Feeding programs run by the World Food Programme (WFP) and NGOs support the most vulnerable populations, particularly marginalized ethnic groups living in Northern Rakhine State, Chin State, Shan State, and Magwe Division. WFP continues to face a funding shortfall for its ongoing food distribution programs and has requested USD 1.2 million in USG assistance for 125,000 Rohingya families. Embassy Rangoon strongly encourages the Department to fund at least a portion of this successful and necessary program. End Summary. Burma's Food Situation -------------- ¶2. (SBU) Agricultural production accounted for more than 44 percent of GDP in Burma's 2007 fiscal year (which ended on March 31, 2008),and according to the Food and Agricultural Organization (FAO),more than 16 million Burmese out of a population of 55 million work in the agricultural sector. According to the Ministry of Agriculture, Burma produced approximately 20 million tons of rice, 4.7 million tons of pulses, 1.1 million tons of maize, and 158,000 tons of wheat in FY07. ¶3. (SBU) In February, FAO and WFP released a joint Crop and Food Security Assessment which stated that Burma's overall agricultural production in FY08 (April 1,2008, to March 31, 2009) will continue to exceed local demand, despite the effects of Cyclone Nargis on key rice producing areas. The FAO assessment team determined that farmers in the Irrawaddy Delta, Burma's rice bowl, contend with salinated land, scarcity of seeds and other inputs, and low prices of rice and other commodities, which deter farmers from increasing production. FAO estimates that although overall rice production in the Irrawaddy and Rangoon Divisions will drop by 13 and 9 percent in FY08 respectively compared to the prior year, Cyclone-affected areas are actually producing higher yields than many experts had predicted. Reasons for Food Insecurity -------------- ¶4. (SBU) FAO and Ministry of Agriculture data indicate that on a macro level, Burma has a surplus of food -- Ministry of Agriculture officials even told us that the GOB expects an increase of rice and beans exports for FY08. Nevertheless, food insecurity persists in many parts of the country on the micro level. According to WFP, 52 of the 324 townships in Burma are highly vulnerable to food insecurity; most are located in Northern Rakhine State, Chin State, Shan State, and Magwe Division (the "dry zone"). RANGOON 00000178 002.2 OF 003 ¶5. (SBU) According to Burmese agricultural expert U Kyaw Tin, food insecurity is exacerbated by poor local agricultural production in many regions, caused by inferior seeds and insufficient fertilizer, as well as external factors such as the amount of rainfall and this year's rat infestation in Chin State. However, U Kyaw Tin and other experts stress that the primary reason for Burma's food insecurity is poor economic policy. The GOB maintains strict controls over the rice market to prevent a jump in prices, which in the past has caused political unrest. Additionally, the GOB restricts the movement of food between states and divisions, which often creates a surplus of rice in some areas which can then be exported. U Kyaw Tin observed that the government allows the military and crony companies to export rice that otherwise could be moved across internal borders to assist those who remain in need. GOB officials apparently do not see the link between internal rice-movement restrictions and food insecurity. Until these GOB policies change, food insecurity will likely persist. WFP Requests USG Funding -------------- ¶6. (SBU) According to WFP Country Director Chris Kaye, WFP Burma continues to experience a significant shortfall in its ongoing Protracted Relief and Recovery Operation (PRRO), which operates in Shan State, Chin State, Northern Rakhine State (NRS),Kachin State, and Magwe Division. WFP has sufficient resources to fund its program through July, but needs an additional USD 16 million to fund the remainder of the three-year program, which assists 1.3 million Burmese living under the food poverty line. If fully funded, WFP will provide more than 24,000 metric tons of food to vulnerable populations through the end of 2009, and run food for education, food for work, and mother and child nutrition support programs. ¶7. (SBU) WFP is particularly concerned with providing assistance to the stateless Rohingya population of NRS. In addition to providing food to the general NRS population, WFP runs a successful food for education program in NRS, feeding families of more than 125,000 students, thus freeing them to attend school rather than work to support the family. In order to continue this program through December, WFP needs USD 4.8 million (part of the overall need of USD 16 million) which will be used to locally procure 7,500 metric tons of food. Kaye stressed that a USG contribution of USD 1.2 million would support the program for approximately two months, significantly contribute to the stabilization of the food security situation in NRS, and help prevent further Rohingya outflows from Burma. Comment and Recommendation -------------- ¶8. (SBU) Food insecurity remains a real concern in Burma, with more than five million Burmese living under the food poverty line, according to the UN. WFP programs provide invaluable assistance to the most vulnerable populations in NRS, Chin State, Shan State, and Magwe Division. Embassy Rangoon strongly encourages the Department to fund WFP's RANGOON 00000178 003.2 OF 003 request for USD 1.2 million -- or as much of that amount as may be available -- to assist the Rohingya population, one of the most vulnerable and persecuted ethnic groups in Burma. By providing food and thereby assisting children to receive an education, the USG would directly respond to what has become a regional Rohingya crisis by helping some of those who remain in Burma to have a somewhat better life. VAJDA