SYRIAN ARAB REPUBLIC
Ministry of Agriculture and Agrarian
Reform
National Agricultural Policy Center
Food Security and High
International Market Prices
Issues of Concern for Syria
Atieh El Hindi
Director
NAPC
International Workshop, Damascus 1-2/7/2008
1. Introduction
o Food security has been one of the main objectives of the
development strategies applied in Syria.
o The policies and plans aimed at increasing self
sufficiency of the main food staples.
o These policies were accompanied with support actions
such as input and output subsidies and agricultural
services
o Since
mid
80s
a
process
of
elimination/reduction was initiated.
gradual
subsidies
food security strategy applied in the Syrian Arab Republic
1. Improve the purchasing power
Produce
food
commodities
that
have
competitive advantage.
Improve agricultural marketing services and
increase agricultural trade flow.
2. Ensure accessibility to food by vulnerable
segments.
3. Ensure price stability.
4. Improve food products quality.
3. the main achievements made in the process
 The contribution of agriculture to GDP was 25% with an
annual growth rate of 4-5%.
 Despite the general improvement of agricultural
production, it witnessed variation due to rain fall
fluctuation.
 Agricultural trade growth rate during 2000-2006 was
8.9%.
 Agricultural trade contribution was 12-20%.
 Economic growth had a positive impact on food security in
general (3200 calories on average).
 The per capita calorie intake is acceptable in general
terms.
4. Evolution of international prices
 significant increase in the agricultural commodities
prices
 accelerated dramatically during 2007 and the first
months of 2008
 Due to various reasons:
Reduced production of main food
commodities
unfavorable weather conditions,
recurrent droughts, Increased income
in India and China which resulted in
the increase of food and fodder
consumption.

Considerable increase of international oil prices

Population increase, particularly in poor countries

The use of agricultural products for bio-fuel

Emergence of huge production companies and
international monopoly

the FOB price index of the main food products in
2000-2007
ranged
between
123-226%,
regardless of the transport cost increase

Further increase in the first months of 2008
5. Local price increase
 Considerable increase in 2007 and the beginning
of
2008
due
to
international
prices
and
unfavorable weather conditions.
 average price increase between February 2007
and February 2008 was around 50%
Local price increase result from Trade openness
 and import of many inputs from the international
markets
 Increase of Syrian products exports as a result of
the international price increase
 Demand increase due to the increase of visitors
from other countries
 Cost of production increase
6. impact of price increase on food security
 statistics indicate the Syrians spend 42% of their
income on average on food
 Flexibility of changing other expenses is quite
limited
(housing,
education,
health
care,
communication and other services)
 The price increase had a negative impact on food
security, particularly for vulnerable segments
 The situation worsened further due to the diesel
price increase which accounts for 15-25% of the
cost.
7. actions taken by the government to mitigate
the impact of price increase on food security
Income increase and price control measures:
• Public employees’ salaries and wages were
increased by 25%.
• Local currency was linked to the foreign currencies
basket.
• The role of the state in the provision of main food
stables was enhanced
• Strict control was imposed on agricultural exports
• Export of main food staples were suspended
Legislations
Legislative decree no. 29 of 2008 was issued to
establish an agricultural subsidies fund that will
cover the following:
- production inputs:
 improved
seeds
distributed
by
the
public
institutions;
 seedlings (fruit, forest, and pastoral);
 veterinary
medicines,
artificial
requirements and vaccinations;
insemination
prices of some agricultural products
- strategic crops: wheat, cotton, barley and sugar
beet;
-plant and livestock products whose production
should be enhanced by the government
The agricultural subsidy fund will be operationalized
at the beginning of 2009. Currently, actions are
taken to assign its management board and director.
Actions taken to ensure delivery of produced crops to
the state companies
1. increase of the strategic crops prices
 producers were offered better prices to ensure
delivery of their products to the state companies in
order to replenish the strategic stock, particularly
for wheat
New price
Former price
Item
17
11.8
Durum wheat
16.5
10.8
Soft wheat
15
17
41 + 3000
SP/dunnum
3.75
9.5
Barley
12
Maze
30
Cotton
2.25
Sugar beet
Decisions issued to guarantee delivery
Several decisions were made to ensure delivery to
the state companies for considerations related to
food security.
The main objectives of these decisions were to
•prevent private trading of wheat, prevent farmers
form keeping a stock that exceed their household
consumption needs
•prevent illegal movement of wheat between
governments so as to control smuggling.
Thank You