The Impact of the Food Price Crisis on Consumption and Caloric Availability in Pakistan : Evidence from Repeated Cross-sectional and Panel Data
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World Bank, Washington, DC
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Welfare losses from the 2008 food price
crisis in Pakistan are deepening the gap between poor and
non poor populations and further increasing inequality
between the provinces. To estimate welfare losses, the
reduction in caloric availability at household level is
measured. The analysis of calorie intake by source supports
the notion that rural households were shielded from the
worst effects of the crisis by their capacity to grow their
own food. Compensating variation estimates suggest that the
average household would need 38 percent of its total
precrisis expenditure to maintain precrisis consumption
levels. The impact of the food price crisis (measured as the
percentage of total expenditure required to restore
consumption to the precrisis level) peaked at the end of
2008 to twice as high as at the start of the year. Average
household caloric availability fell by almost 8 percent
between 2006 and first half of 2008. Urban households were
relatively worse off than rural households during the
crisis. Income gains from sales of agricultural commodities
produced by rural households presumably offset the negative
impact of the food crisis to some degree. The drawdown of
assets over 2008-10 was another important coping mechanism,
especially for households without access to land.
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ABSOLUTE TERMS, AGRICULTURAL ACTIVITY, AGRICULTURAL COMMODITIES, AGRICULTURAL ECONOMICS, AGRICULTURAL LAND, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURE, AVERAGE PRICES, BEEF, BEVERAGES, BREAD, BUTTER, CALORIC CONSUMPTION, CALORIE INTAKE, CASH TRANSFER PROGRAMS, CASH TRANSFERS, CEREAL PRODUCTS, CEREALS, CHEESE, CHEWING GUM, CHOCOLATE, CINNAMON, CITRUS FRUIT, CONDENSED MILK, CONDIMENTS, CONFECTIONERY, CONSUMER PRICE, CONSUMER PRICE INDEX, COOKING, COPING MECHANISMS, CORN, COST OF FOOD, CREAM, CREDIT MARKETS, CROP PRODUCTION, DAIRY, DATES, DIETARY DIVERSITY, DISTRIBUTIONAL EFFECTS, ECONOMIC GROWTH, ECONOMIC SHOCKS, EGGS, EXPENDITURE, EXPENDITURES, FARM INCOME, FARMERS, FATS, FOOD COMMODITIES, FOOD CONSUMPTION, FOOD GOODS, FOOD INSECURITY, FOOD ITEMS, FOOD POLICY, FOOD PRICE, FOOD PRICES, FOOD PRODUCTION, FRUIT, FRUIT JUICES, FRUIT VEGETABLES, FRUITS, GRAINS, GRAPES, HONEY, HOUSEHOLD BUDGET, HOUSEHOLD CONSUMPTION, HOUSEHOLD HEAD, HOUSEHOLD HEADS, HOUSEHOLD SIZE, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HUMAN CAPITAL, HUMAN DEVELOPMENT, INCOME, INCOME DISTRIBUTION, INCOME GAINS, INCOME SHOCK, INCOME SUPPORT, INEQUALITY, INFLATION, IRRIGATION, JAMS, JUICES, LANDLESS HOUSEHOLDS, LIVESTOCK OWNERSHIP, MALNUTRITION, MANGO, MARGARINE, MEAT, MUTTON, NATURAL DISASTERS, NUTRITION, PEANUTS, PEPPER, POOR, POOR FAMILIES, POOR HOUSEHOLD, POOR HOUSEHOLDS, POOR RURAL HOUSEHOLDS, POORER HOUSEHOLDS, POTATO, POVERTY LINE, PRICE CHANGE, PRICE CHANGES, PRICE INCREASE, PRICE INCREASES, PRICE INDEX, PRICE LEVEL, PRICE TREND, PULSES, REGIONAL DIFFERENCE, REGIONAL DIMENSIONS, REGIONAL INCOME, RETAIL, RETAIL PRICE, RETAIL PRICES, RICE, RURAL, RURAL AREA, RURAL AREAS, RURAL DIFFERENCES, RURAL HOUSEHOLDS, RURAL POOR, SAFETY NET, SAFETY NET PROGRAMS, SAFETY NET SYSTEM, SALE, SALES, SCHOOLING, SESAME SEEDS, SOCIAL PROTECTION, SOYBEAN, SPICES, STAPLE FOODS, SUBSTITUTE, SUBSTITUTION, SUBSTITUTION EFFECT, SUGAR, SUGARCANE, TARGETING, TEA, TECHNICAL ASSISTANCE, TURMERIC, VEGETABLES, VOLATILITY, VULNERABLE SEGMENTS, WALNUT, WELFARE IMPLICATIONS, WELFARE INDICATOR, WHEAT, WHEAT FLOUR, WHEAT PRODUCTION, food crisis, compensating variations