Joint Appeal for Afghanistan 2008 (Word)

Afghanistan Joint Appeal for

The Humanitarian Consequences of the

Rise in Food Prices

January 2008

TABLE OF CONTENTS

1.The Humanitarian Context of the Wheat-Flour Price Rise

1.UNITED NATION’S WORLD FOOD PROGRAMME (WFP)...... 5

2.WORLD HEALTH ORGANIZATION (WHO)...... 8

3.UNITED NATIONS CHILDREN’S FUND (UNICEF)...... 10

Annex I. Analysis of Impact of Wheat Prices on Food Accessibility...... 13

Table 1:Food security classification by province...... 16

Annex II. Estimated Food Intervention Requirements - Rural Areas

Annex III. Estimated Food Intervention Requirements - Urban Areas

Annex IV. Target Provinces and Beneficiaries of UNICEF and WHO...... 20

1.The Humanitarian Context of the Wheat-Flour Price Rise

Eighty percent of the population of Afghanistan relies on agriculture, which contributes more than 50% to GDP. Wheat, used to make bread, is the staple food of the vast majority of Afghans and the most important food crop in the domestic economy.

Compared to the drought year of 2006, 2007 was considered to be a good agricultural year[1], with cereal production estimated at 5.6 million tonnes compared to 6.1 million tonnes of domestic requirements (wheat represents approximately 80% of the country’s total cereal production). Nonetheless, many households have been unable to meet their basic food needs and are highly susceptible to volatility in the price of this staple food.

There are a number of reasons for the enormous increase in the price of wheat flour in Afghanistan. International prices of cereals, including wheat, have increased markedly in the past 12 months. On average, global wheat prices rose by nearly 100% since the start of 2007. There are several explanations for this, including the unprecedented growth in cereals demand for bio-fuels; significant growth in demand for cereals as animal feed as populations, especially in Asia, have become better off and thus can afford to consume more meat; and poor harvests in some of the largest cereal producing countries, including Australia. In recent years both India and Pakistan, previously net wheat exporters, have become sizeable net importers.

Wheat flour prices in Pakistan, the main source of food imports for Afghanistan, have also risen in the past 12 months, by about 15% for domestic consumers. More important, increasing cereal shortages in Pakistan, and the recent spike in political instability, has led to more restrictions on the export of highly subsidised wheat flour. This has been at least one of the outcomes resulting from concerns that traders have taken advantage of low Pakistan prices and political uncertainty to extract higher profits from Afghan consumers. Finally, within Afghanistan, the worsening security has contributed to an increase in transportation costs of all commodities, including wheat flour. (See ANNEX I)

The Government of Afghanistan has limited capacity to import wheat or wheat flour and as yet maintains no grain reserves that might be used to help offset higher prices. Nonetheless, some steps are already being taken to reduce the impact, including the recent temporary removal of the import tax on both wheat and wheat flour and tax reductions for other staple food items.

Afghanistan is therefore requesting assistance from international partners to provide a temporary safety net for 425,000 vulnerable rural and urban households (2.55 million beneficiaries) with low purchasing power, and thus help them to meet their needs through the provision of targeted food assistance distributed in selective locations. (See ANNEX II & III)

Summary of Requirements
Project Proposals / $
Food Assistance for Livelihoods Protection in Rural and Urban Areas (WFP) / 76,756,835
Nutrition response to food shortage arising from drastic increase in price of wheat flour in Afghanistan(UNICEF) / 3,580,019
Prevention of avoidable malnutrition in the targeted food insecure provinces(WHO) / 984,400
Total Requirements / 81,321,254

1.UNITED NATION’S WORLD FOOD PROGRAMME (WFP)

Appealing Agency / UNITED NATION’S WORLD FOOD PROGRAMME(PRRO 10427.0)
Project Title / Food Assistance for Livelihoods Protection in Rural and Urban Areas.
Project Code / AFG/…
Sector / Food Security
Objectives / Provide temporary safety net to 235,000 vulnerable households in rural areas and190,000in urban and semi-urban areas affected by higher staple food prices.
Targeted Beneficiaries / 2.55 million beneficiaries –1.41 million in rural areas and 1.14 in urban areas
Implementing Partners / MAIL, MRRD, Local NGOs, CDCs, ARCS,
Project Duration / 5 months (February to June 2008)
Funds Requested (Net) / $76,756,835

Project Summaryand Summary of Needs

Following the identification of increased vulnerability amongst the Afghan population due to a dramatic rise in wheat and wheat flour prices in local markets, the Ministry of Agriculture, Irrigation and Livestock (MAIL), the Ministry of Rural Rehabilitation and Development’s Vulnerability Analysis Unit (VAU), the Central Statistics Office (CSO) and WFP’s Vulnerability Assessment and Mapping (VAM) Unit have jointly undertaken a review of the impact on Afghans of various socio-economic strata, and residing in different geographical locations. Four indicators were analysed:

(i)Food consumption of borderline food-insecure populations;

(ii)Household expenditure on food;

(iii)Source of food; and

(iv)Changes in wheat flour prices over the past year in various centres.

These findings indicate that 235,000 households in rural areas, or 1.41 million people;and 190,000 households, in urban and semi-urban areas,or 1.14 million people that are not supported under on-going WFP interventions, have likely been pushed from borderline food insecurity to high risk insecurity owing to the price increases. Field missions, led by the Ministry of Rural Rehabilitation and Development (MRRD), and with participation of WFP, MAIL and FAO,will further verify these findings over the coming weeksand facilitate the targeting process.

Project Justification

During the past 12 months the price of staple foods in Afghanistan has increased dramatically. The most important staple, wheat flour, has seen an average price rise throughout the country of nearly 60%, with some important centres exceeding this. This has caused considerably increased hardship for poor Afghans, particular those dependent on low casual labour wages, which have essentially remained unchanged.

The Government of Afghanistan has limited capacity to import wheat or wheat flour and, as yet, maintains no grain reserves that might be used to help offset higher prices. Nonetheless, some steps are already being taken to reduce the impact, including the recent temporary removal of the import tax on both wheat and wheat flour and tax reductions for other staple foods. Of immediate concern is that increasing cereal shortages in Pakistan, and the recent spike in political instability, has led to restrictions on the export of highly subsidised wheat flour, which has reduced availability in Afghanistan and is contributingfurther to the price increases.

The Government of Afghanistan is therefore requesting assistance from the international community to provide a temporary safety net for vulnerable households with low purchasing power, and thus help them meet their needs through the provision of food assistance distributed in selected locations. In rural areas food-for-work projects will be used to reach targeted households. For interventions in urban areas, as a minimum,Government would like WFP to help them procure the required quantity of wheat as quickly as possible and to deliver it to major centres. The distribution modalities for urban populations have yet to be clarified between WFP and the Government, and may be done through standard WFP modalities, or in other ways.

Project Description

The objective of the intervention is to prevent 235,000 households in rural areas and 190,000 urban householdsmost affected by the rise in food prices, andwhich are not supported through on-going WFP interventions, from resorting to coping strategies that destroy their household assets and reduce their ability to cope with future shocks. This will be achieved through the provision, from February to June 2008, of 43,000 tonnes of assorted commodities (i.e. 35,000 tonnes of wheat, 4,200 tonnes of pulses, 2,800 tonnes of vegetable oil and 700 tonnes of iodized salt) in rural areas; and 46,000 tonnes of wheat in urban and semi-urban areas.

Expected Result

The expected result is the prevention of a further deterioration of the food security of 2.55 million Afghans affected by the massive rise in food prices, protection of their livelihoods and improvement in their accessibility to food.

Implementation Arrangements

Planned food interventions in rural areas will target food-insecure households, mainly through community-based works, aimed at rehabilitating agriculture and irrigation infrastructure, rural road networks and water points. All interventions will be implemented in line with the modalities defined in WFP’s ongoing Protracted Relief and Recovery Operation – PRRO 10427, and based on existing agreements with the Government of Afghanistan. The interventions will benefit from the operational and logistics structures that serve WFP’s regular activities in Afghanistan

Regarding the intervention in urban and semi-urban areas, WFP and the Government of Afghanistan are currently working to determine the best distribution modalities to ensure the food assistance reaches the most vulnerable. Several options are being considered including: standard WFP distribution modalities; blanket distributions withdelivery through an appropriate market intervention, using markets as entry points;and selling the food at subsidized prices. As a minimum, WFP will procure the wheat needed and arrange its transport to major centres in Afghanistan.

Financial Reporting

The financial reporting on the use of contributions will be done in accordance with WFP rules and regulations and will comply with its internal and external auditing requirements. Should Government take responsibility for the distributions in urban areas, financial reporting will be done in accordance with Government of Afghanistan reporting practices.

Financial Summary - Intervention in Rural Areas
Budget Items / $
Food Cost / 19,666,500
External Transport / 5,337,500
Landside Transport and Storage handling (LTSH) / 6,978,461
Direct Support Costs (DSC) / 4,183,746
Other Direct Operational Costs (ODOC) / 153,293
Indirect Support Costs (ISC) (7%) / 2,542,365
Total Requirements / 38,861,865
Financial Summary - Intervention in Urban Areas
Budget Items / $
Food Cost / 17,480,000
External Transport / 5,750,000
Landside Transport and Storage handling (LTSH) / 7,517,780
Direct Support Costs (DSC) / 4,502,940
Other Direct Operational Costs (ODOC) / 165,140
Indirect Support Costs (ISC) (7%) / 2,479,110
Total Requirements / 37,894,970

2.WORLD HEALTH ORGANIZATION (WHO)

Appealing Agency / World Health Organization (WHO)
Project Title / Prevention of avoidable malnutrition in the targeted food insecure provinces
Project Code
Sector / Health
Objectives /

To prevent avoidable morbidity, mortality and disability due to malnutrition and micronutrient deficiencies
To promote good nutritional practices by communities, families and individuals, especially mothers.

Targeted Beneficiaries / 2.5 million population especially women and children (working jointly with UNICEF)
Implementing Partners / UNICEF, Nutrition department of MOPH, NGOs operating in the targeted food insecure provinces
Project Duration / 5 months
Funds Requested (Net) / US $ 984,400

PROJECT SUMMARY

Disease and lack of preventative and curative health care are key determinants of nutritional status, in a well known vicious circle of Disease & Malnutrition. All diseases impact on the nutritional status of individuals, and, as their nutritional status worsens, women and children become more prone to diarrhoeas and other communicable diseases, Furthermore, reduced access to food and economic distress have many direct and indirect impact on families' and communities' capacities to care for the most vulnerable and to seek and/or access health care. Inadequate food supply and the consequent malnutrition can be expected to cause an increase in risk for illness and death for the most vulnerable, especially among the displaced, returnees and the more disadvantaged. The risk is particularly high for pregnant women and children aged under-five. Experience shows that even in previously healthy populations, child morbidity and crude mortality rates can increase twenty-fold in as little as two weeks. The best hope for averting the morbidity and mortality among the most vulnerable during crisis situations is to ensure that they receive adequate health care as well as the necessary food.

This proposal seeks to prevent morbidity and mortality among the disadvantaged, displaced and returnees due to insufficient food availability. WHO will make available the required essential drugs that will be distributed in 100% of the targeted provinces. With special focus on the risk of malnutrition, WHO will cover 50% of the targeted provinces with rapid nutritional assessments and provision of supplies and equipment (weighing scale, height measuring board, etc.), while UNICEF will cover the remaining 50%. . WHO will also organize briefing sessions on life-saving interventions for all health staff and health educators in 50% of the targeted food insecure provinces. Fifteen short term field coordinators (for 3 months) will be recruited to oversee and monitor the implementation of the program

OBJECTIVES

To prevent avoidable morbidity, mortality and disability due to malnutrition and micronutrient deficiencies.
To promote good nutritional practices by communities, families and individuals, especially mothers.

ACTIVITIES

Provision of essential drugs to 100% of the targeted provinces)
Rapid nutrition needs assessment in 50% of the targeted food insecure provinces.
.
Provision of supplies and equipment for nutritional assessment to 50% of the targeted provinces.
Conduct briefing sessions for health care providers and health educators on emergency life-saving interventions in 50% of the targeted provinces.
Recruitment of field coordinators for monitoring the planned activities.

OUTCOMES

Essential drugs available 100% of the targeted provinces.
Nutrition needs assessment report.
Nutrition supplies and equipment (weighing scales, height measuring board, micronutrient supplements, etc.) procured and distributed to 50% of the targeted provinces.
Around 1,000 health staff and health educators from the targeted provinces provided briefing sessions on emergency life-saving interventions.
Reduced morbidity and mortality especially among women and children

FINANCIAL SUMMARY
Budget Items / US$
15 short term field coordinators for 5 months / 75000
Field coordination, technical assistance, travel, meetings / 15000
Rapid nutrition needs assessment in 50% of the targeted provinces / 55000
Dissemination of health education messages (media, print, health facilities, TV spots, etc) / 45000
Briefing sessions for 1000 health staff and health educators from 50% of the targeted provinces on life-saving interventions / 75000
Essential drugs for 100% of the targeted provinces / 517000
Nutritional assessment supplies and equipment (weighing scales, measuring boards, etc) / 55000
Project Coordination, Monitoring and Reporting / 83000
Program Support Cost (PSC) (7%) / 64400
Total cost / 984,400

3.UNITED NATIONS CHILDREN’S FUND (UNICEF)

Appealing Agency / UNITED CHILDREN’S FUND (UNICEF)
Project Title / Nutrition response to food shortage arising from drastic increase in price of wheat flour in Afghanistan
Project Code
Sector / Health and Nutrition
Objectives / To prevent and control malnutrition among under-five children, pregnant and lactating women in 24 provinces that are severely affected by the wheat flour price rise crisis.
Targeted Beneficiaries / 237,588 under-five children and 118,794 pregnant and lactating women at high risk of malnutrition.
Implementing Partners / Ministry of Public Health, BPHS NGOs and NGOs operating outside BPHS contract system, WHO
Project Duration / Five (5) Months
Funds Requested (Net) / $3,580,019.00

Project Summary

From January 2007 to January 2008 the price of wheat flour across Afghanistan increased by between 40% and 80%, with a country-wide average of 58%. Such dramatic price changes increase the risk of hunger and malnutrition, especially during the winter and lean period of pre-harvest season, as higher prices mean that wheat flour becomes unaffordable to a larger segment of the population. It is currently estimated that 425,000 households (190,000 in urban and 235,000 rural areas) are affected placing 2.55 million people at severe food and nutrition vulnerability in all the provinces as drastic price has made wheat flour unaffordable. Among the affected people are 459,000 are under-five children and 229,500 are pregnant and lactating women who suffer most in emergencies as their nutrition requirements are more.

Available data show that 54% of Afghan under-five children are stunted, 39% are underweight, about 7% are wasted and 21% of women of reproductive age are malnourished. There has been a two-fold of malnourished under-five children admissions to therapeutic feeding centres between 2005 and 2007, which indicates that vulnerability to malnutrition remains high even normal times. The current food price crisis will make the situation of malnutrition worse in the as most under-five children, pregnant and lactating women are already vulnerable to malnutrition. Unless the situation is intervened, there is high probability that majority of the under-five children, pregnant and lactating women will suffer from severe forms of malnutrition leading to increased mortality.

This project proposal, therefore, seeks funds for implementation of nutrition interventions to prevent and control malnutrition in the affected provinces arising from the food price rise crisis.

Objective

The overall objective of the project is to prevent and control malnutrition among under-five children, pregnant and lactating women in 24 provinces that are severely affected by the wheat flour price rise crisis.

TargetProvinces and Beneficiaries

The project will be targeted to 24 provinces from which 237,588 under-five children and 118,794 pregnant and lactating women shall benefit from the nutrition intervention. The list of the provinces is presented on the last page of the proposal.