A Guide to the SAARC Food Bank

Transcription

1 A Guide to the SAARC Food Bank A Publication of the SAARC FOOD BANK BOARD South Asian Association for Regional Cooperation Secretariat 46

2 Contents S.No. Page No. 01. Preface from the Secretary General of SAARC 02. Introduction Working Guidelines/Standard Operating Procedures for the SAARC Food Bank Terms of Reference (ToR) and list of designated Food Bank Nodal Points a. Terms of Reference for the Nodal Points 6 b. List of the SAARC Food Bank Nodal Points Guidelines for determination of price of foodgrains Foodgrain reserve & country-wise location of godowns a. Assessed Shares of Foodgrains for the Food Bank 10 b. Earmarked Shares of Foodgrains for the Food Bank 11 c. Locations of the Godowns/Storage Facilities 12 Annex-I: Agreement on establishisng the SAARC Food Security Reserve 21 Annex-II: Agreement on establishisng the SAARC Food Bank 31 Annex-III: List of Meetings a. SAARC Food Security Reserve Board Meetings 45 b. SAARC Food Bank Board Meetings 45 48

3 PREFACE The Third SAARC Summit (Kathmandu, 1987) witnessed the signing of an Agreement establishing the SAARC Food Security Reserve. The Agreement, which came into force on 12 August 1988, provided for a reserve of foodgrains for meeting food emergencies in the member countries. However, the Reserve could not be utilized due to a host of procedural and practical difficulties. Therefore, the decision of the Twelfth SAARC Summit (Islamabad, 4-6 January 2004) to establish a Regional Food Bank, replacing the erstwhile Food Security Reserve, must be seen as the turning point in SAARC s campaign to ensure food security in the region. The Agreement establishing the SAARC Food Bank, which was signed during the Fourteenth SAARC Summit (New Delhi, 3-4 April 2007), entered into force on 7 January Till date, the SAARC Food Bank Board has held eight meetings, during which operational modalities have been finalized and the quantum of the foodgrains has also been doubled. The publication, A Guide to the SAARC Food Bank, is aimed at putting in one document all the provisions governing the SAARC Food Bank and the formalities to be completed by member countries willing to avail of foodgrains from the Bank. I do hope that the member countries and the stakeholders concerned across the region will find the publication handy and user-friendly. Kathmandu, March 2016 (Arjun B. Thapa) Secretary General of SAARC 50

4 INTRODUTION During the Third SAARC Summit (Kathmandu, 1987), an Agreement on establishing the SAARC Food Security Reserve was signed, which came into force on 12 August The Agreement provided for a reserve of foodgrains for meeting food emergencies in member countries. Initially, the size of the Reserve was 199,800 MTs, which was subsequently enhanced to 241,580 MTs in It was administered by the SAARC Food Security Reserve Board (FSRB) comprising representatives from each member country. The Board used to meet once a year. The main functions of the Board were to undertake a periodic review of the food situation and prospects in the region, including factors such as production, consumption, trade prices, quality and stocks of food grains. The Agreement was subsequently amended by the Twenty-second Session of the SAARC Council of Ministers (Kathmandu, January 2002), elaborating the definition of `emergency. The idea behind the setting up of the Reserve was to allow member countries to utilize it at times of food crises. However, no member country could utilize the food stock available under the Reserve due to a host of procedural and practical difficulties. In , when Bangladesh could not access the Reserve in the face of some procedural difficulties despite acute shortage of foodgrains in the country, the unaccessibility to the Reserve was highlighted and one proposal was made to simplify the procedures to withdraw foodgrains from the Reserve in emergencies. Gradually, the ideas of Nodal Points and Institutions, specimen of grains/harmonized safety standards, transport, delivery, inspection and pricing guidelines came up. During the recent earthquake in Nepal, the Secretariat consulted the Board Member from Nepal to explore the possibility of providing food support to the latter from the Food Bank. No formal request has been received from the Government of Nepal as of today. Taking into note the challenges and hindrances in the operationalization of the Reserve, the Twelfth SAARC Summit (Islamabad, 4-6 January 2004) decided to establish a Regional Food Bank and the Thirteenth Summit (Dhaka, 1

5 November 2005) reiterated the merit of the idea. The Concept Paper on the establishment of the SAARC Regional Food Bank was considered by the Third Meeting of the Technical Committee on Agriculture and Rural Development (TCARD) (New Delhi, September 2006). The Committee revised the Paper incorporating comments of all the Member States, widening the scope of the Agreement establishing the SAARC Food Security Reserve. An Inter-governmental Expert Group meeting (New Delhi, 1-2 March 2007) finalized the draft Agreement, which was subsequently signed during the Fourteenth SAARC Summit (New Delhi, 3-4 April 2007), superseding the erstwhile Food Security Reserve. On completion of the ratification of the Agreement, it entered into force on 7 January Till date, the Board has held eight meetings. The Board is working on the detailed working procedure and way forward, and, at the same time, is considering if any Member State needs support from the Bank. Throughout the process, operational modalities have been finalized and the quantum of the foodgrains has also been doubled. Apparently, two pressing issues for the Food Bank are: fixing the price of the foodgrains and finalizing the modalities for transportation of foodgrains from the donor country to the receiving country. The SAARC Secretariat has approached the International Food Policy Research Institute (IFPRI) and the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) to conduct a comprehensive study addressing all the issues that stand in the way of operationalizing the Food Bank. SAARC has lately received a proposal from the UN-ESCAP to commission a study on operationalizing the Food Bank which would soon be forwarded to the Member States for consideration. It is hoped that the proposed Study would recommend initiatives needed to operationalize the Food Bank. The Thirty-eighth Session of the Standing Committee (Thimphu, 6-7 February 2011) discussed issues of guidelines such as price incentives and lowering the threshold of 8% food loss to avail of foodgrains from the Bank. Accordingly, the Board in subsequent meetings discussed the guidelines with technical inputs from the SAARC Agriculture Centre (SAC). The Eighteenth Summit (Kathmandu, November 2014) directed to eliminate the threshold criteria from the Agreement. Subsequently, the Secretariat circulated a draft 2

6 amendment as entrusted by the Eighth Food Bank Board and so far has obtained comments from Bangladesh, Bhutan, India and Sri Lanka. To make the information pertaining to the Food Bank user-friendly and handy, the Seventh Board Meeting as well as some previous meetings suggested that the Secretariat may put together the documents and make these available in a published volume. The Secretariat has accordingly sought updated information from the Member States and collated those for this publication. 3

7 Working Guidelines/Standard Operating Procedure for the SAARC Food Bank 1 i. As provided for in the Agreement, the foodgrains maintained in designated godowns/storage facilities would be beyond the purview of respective domestic regulations in order to facilitate expeditious utilizationexpeditious utilization of the foodgrain stocks; ii. iii. iv. Request(s) for accessing the Food Bank reserve would be made directly by a Nodal Point to his counterpart Nodal Point(s) in coordination with respective National Focal Points and Members of the Board; In order to ensure most expeditious response during an emergency, a request by a Nodal Point to his counterpart(s) would be responded to as quickly as possible but not later than two working days of the request received; SAARC Secretariat would facilitate intimation to all Nodal Points of request(s) made by a Nodal Point to other Nodal Point(s) i.e. in terms of availing of its own reserve or, request to avail of share of other Member States maintained under the Food Bank; v. If a Member State intends to avail of its own reserve, as provided for in Article VIII of the Agreement, it would only require its Nodal Point to intimate other Nodal Points through the National Focal Point and the SAARC Secretariat; vi. If multiple requests are received by a Member State, then the requested Member State may respond by making its share equitably available to the requesting Member States; vii. Although Articles VII and VIII (2) of the Agreement provide for replenishment of the food grain by a Member State within a maximum period of one calendar year and two years respectively, considering 1 Agreed by the Second Food Bank Board Meeting (Colombo, February 2009) and revised by the Seventh Food Bank Board Meeting (New Delhi, November 2014). 4

8 the modest quantum of the Bank reserves, the Member States should replenish the drawn quantum within a maximum period of six (6) months; viii.in keeping with Article VI of the Agreement, the requested Member State would make arrangements to complete the transaction at the earliest but not exceeding a period of sixty (60) days of the receipt of the request; ix. For determination of price, Article IX (3) of the Agreement, read together with the broad guidelines contained in paragraph 14 of the Report of the Board s First Meeting, would continue to remain the basis; x. Transportation modalities would be worked out by the concerned Member States; xi. Payment time and module will be subject of consultation between respective Member States; and xii. Central Grain Analysis Laboratory (CGAL) of India would be considered as the SAARC Foodgrain Testing Reference Laboratory 2. ; 2 As recommended by the Sixth SAARC Food Bank Board (Thimphu, November 2013). 5

9 Terms of Reference for the Nodal Points 1 1. Each Member country shall designate Nodal Point(s) responsible for transacting all business at the national level related to operations of the Food Bank; 2. The Member Country in need shall directly notify, through its designated Nodal Point(s), the other Member Country or countries of the food emergency or shortage; 3. The other Member Country (read as Nodal Point) or countries on being so requested shall take immediate steps to make necessary arrangements to ensure immediate and speedy release of the required foodgrains; 4. The requesting Member Country (read as Nodal Point) shall, at the same time, through the Ministry of Foreign/External Affairs, inform the Board of its request to the other Member Country or countries to coordinate; and 5. Private sector importer(s) in a Member Country in need may apply to the designated Nodal Point(s) of that country, who shall transact all activities on behalf of the private sector importer(s) and shall be responsible for the transaction(s). The Member Countries may develop appropriate guidelines for involving the private sector in conformity with its national legislations, procedures and requirements. 1 Reference Article X (6) of the Agreement. 6

10 List of the SAARC Food Bank Nodal Points49 AFGHANISTAN Mr. Ghulam Sakhi Manager (Strategic Reserves) Ministry of Agriculture, Irrigation and Livestock Kabul Tel: BANGLADESH Mr. Md. Ataur Rahman Joint Secretary (Supplies) Ministry of Food Govt. of the People s Republic of Bangladesh jsprocurement@mofood.gov.bd Tell: Cell: ; Fax BHUTAN Mr. Karma Nidup Chief Executive Officer Food Corporation of Bhutan Phuntsholing, Bhutan Phone: karmanydup@gmail.com karmanidup@icloud.com INDIA Mr. S.R. Patnaik Under Secretary, SAARC Division Ministry of External Affairs Tel: , Fax: Mob: ussaarc@mea.gov.in; ussaarc2@mea.gov.in 7

11 MALDIVES Ms. Fathimath Ashan Senior General Manager Food Beverages & Regional sales State Trading Organization Plc. Cell : Tel : Fax: ashan@stomaldives.net NEPAL PAKISTAN SRI LANKA Mr. Shiba Prasad Mishra Head of the Department Nepal Food Corporation Tel: , , Fax: Mobile: khadya@wlink.com.np Mr. Moazzam Ali Joint Secretary, Ministry of National Food Security and Research Tel: Fax: moazzam4@gmail.com Ms. N. Nimalka Dias Food Commissioner Food Commissioner s Department Union Place, Colombo 2 Tel: ; Cell: ; Fax:

12 Guidelines for Determination of Price of Foodgrains The broad principles will be as follows, as indicated under Article IX (3) of the Agreement: a. Price quoted, in general, shall be lower than prices generally charged or quoted for countries beyond the region; b. Price shall be representative of the market, both domestic and international, and may be adjusted suitably to reflect seasonal variations and the price movements in the recent past; and c. A responding Member Country shall endeavour to accord, as far as possible, national treatment in respect of calculating the cost components such as the ones related to storage, internal freight, interests, insurance and overhead charges, margin of losses etc., while maintaining its reserve and making releases. Following guidelines should be followed to determine the price of food, as approved by the First Food Bank Board Meeting (Colombo, October 2008): a. The method of deferred payment may be accepted, if requested; b. The releasing Member State may take into account its quoted FoB price of food grain on the date of the request, as benchmark for negotiation with the requesting Member State(s), while applying the principles specified under Article IX(3) of the Agreement; c. The releasing Member State may exempt the released food grains of various regulatory duties; and d. In order to minimize cost and time of transportation for the requesting Member State, the releasing Member State would release the food grain from the storage facilities/godown(s) located closest to the requesting Member State. The Fifth SAARC Food Bank Board further decided that Article IX of the Agreement provides for guidelines for determination of prices. Any further discussion on the guidelines may be subject to negotiation between the concerned Member States and as per the humanitarian concerns enshrined in the relevant Article of the Agreement. 9

13 Assessed Shares of Foodgrains for the Food Bank As per the recommendation of the Third SAARC Food Bank Board Meeting and as approved by the Sixteenth SAARC Summit, the doubled quantum of the Reserves is as follows: In Metric Tons Country As per the decision of the 1 st Meeting held in Colombo, 2008 Reserve As per the decision of the 3 rd Meeting held in Kabul, 2009 Afghanistan 1,420 2,840 Bangladesh 40,000 80,000 Bhutan India 1,53,200 3,06,400 Maldives Nepal 4,000 8,000 Pakistan 40,000 80,000 Sri Lanka 4,000 8,000 Total 2,43,000 4,86,000 Remarks 10

14 Earmarked Shares of Foodgrains for the Food Bank 1 In Metric Tons Country Earmarked Shares Remarks Afghanistan 2,840 Bangladesh 80,000 Bhutan 360 India 3,06,400 Maldives 400 The 8 th Food Bank Board Meeting (Malé, 2-3 September 2015) decided that considering that the Member State is an importing country, the equivalent amount to the assessed share from its buffer stock would be considered as its contribution. Nepal 8,000 Pakistan 40,000 Yet to be doubled Sri Lanka 8,000 Total 4,46,000 1 As per the decision of the 3 rd Meeting held in Kabul,

15 Locations of the Godowns/Storage Facilities 1 AFGHANISTAN Reserved Quantity Storage Location MT Remarks Wheat Rice Central silo 2840 Afghanistan has 3 reserves of corns located in the capital Kabul at center, northern province Balkh and western province Herat. It storages all the shares in Kabul silo near the highway (main road) that can transfer to all provinces. It is also planning to store about (1007 mt) in Balkh silo in the north 873 mt of which in Herat silo close to the border of western provinces. BANGLADESH Godowns Moheshwar Pasha, Central Supply Depot (CSD), Khulna Chittagong Silo Reserved Quantity MT Rice Wheat Total Location details Moheshwar Pasha Central Supply Depot (CSD) is situated in Khulna District, the southern-most district of Bangladesh. This CSD is connected by all modes of transportation; such as roads, railways and river routes railway, road and river. The CSD, located next to the river bank, is connected to the second sea-port of Bangladesh i.e. Mongla Port Chittagong Silo is adjacent to the sea port. All modes of transportation facilities (railway, road and river) can be accessed. This silo is meant for storing wheat only. 1 As per the inputs received from the Member States till 30 March

16 Dinajpur District Dinajpur, in Northern Bangladesh, is one of the biggest rice producing areas, having a number of CSDs and Local Supply Depots (LSDs) in the district. The biggest storage facility in this district is Dinajpur CSD. Road and Rail communications connect the CSD with the rest of Bangladesh. Bogra Bogra District, located at central part, is the storage as well as production hub of the country, having storage facility of 1,64,250 mt. including one Multi-stored Modern Warehouse. The district is well connected by the rail and road and has access to both the sea ports of the country, viz, Chittagong and Mongla. Total BHUTAN Location Reserved Quantity MT Remarks Phuentsholing 130 Linked to Siliguri, Bongaigaon Gelephu 100 and Guwahati of India. Samdrupjongkhar 130 Additional storage facility needs to be built. INDIA Name of the Region Depot Wheat MT Rice MT Contact Points Punjab PSWC Chheharta Area Manager, Food Corporation India (FCI), Amritsar, Ph. No PSD Bharaiwal FSD Vallah FSD Majitha FSD Bhagtanwala FSD Chabhal Total DGM (Movt.), FCI, RO, Chandigarh 13

17 Name of the Region Depot Wheat MT Rice MT Contact Points Haryana FSD Ambala Cantt Ugada Bada Manager (Depot), FSD, Ambala, Mob: FSD Ambala Cantt./ Ugada Bada Total Rajasthan FSD Pokran Area Manager, Jodhpur Mob: Uttar Pradesh West Bengal Manager (Depot) Mob: FSD Jodhpur Manager (Depot) Mob: Total FSD Gorakhpur Area Manager, D.O. Gorakhpur Ph: , , (M) FSD Kalyani Area Manager, District Office, NPD. 69, Ganesh Chandra Avenue, Kolkata-13 Contact No (M), (Fax) 2. Area Manager, FCI Nutan Ganj, Bankura Contact No (M), (Fax) Area Manager, FCI, FD, 27, Hyde Road Extn., Kolkata-88 Contact No (M), (Fax) 4. Area Manager, FCI, Rabindra Nagar, Siliguri Contact No (M), (Fax)

18 Name of the Region Depot Wheat MT Rice MT Contact Points Tamil Nadu Tuticorin MG Area Manager, FCI Complex District Office, No. 23-B, FSD Avadi/Sevur FSD Sevur Total Beach Road, Tuticorin , Ph: Area Manager, FCI District Office, No. 2, Sathyamurthy Salal, Chetput, Chennai PH: Grand Total MALDIVES Total : Area Manager, FCI District Office, Immanuel Complex, No. 40, Thayumananavar Street, Thirunagar, Vellore Ph: Location STO People's Choice Staple Foods Block # 393/ Handhuvaree Hngun, Maafannu, Malé Reserved Quantity MT Remarks 400 The 8 th Food Bank Board Meeting (Malé, 2-3 September 2015) decided that considering the Member State is an importing country, the equivalent amount to the assessed share from its buffer stock would be considered as its contribution. 15

19 NEPAL Location Reserved Quantity MT Birtamod, Jhapa District 2000 Biratnagar, Morang District 2000 Birgunj, Parsh District 2000 Kathmandu 1000 Dhangadhi, Kailali District 1000 Total 8000 Remarks PAKISTAN Reserved Quantity Location Remarks MT Pakpattan 7000 The reserves should be reviewed/doubled according to the decision of the 3 rd Okara Depalpur 1500 Burebala 7000 Gaggo 5500 Musa virk 9000 Total SRI LANKA SAARC Food Bank Board Meeting. Location Veyangodo District Granary- Gampaha District, Western Province, Sri Lanka Reserved Quantity MT 8000 Remarks 16

20 Working Procedures of the SAARC Foodgrain Testing Reference Laboratory Introduction: The Fourth Food Bank Board Meeting (Dhaka, October 2010) felt that to facilitate transaction of reserves among Member States, availability of food analysis facilities would be useful. Subsequently, the Sixth Food Bank Board Meeting (Thimphu, November 2013) identified the Central Grain Analysis Laboratory (CGAL) as the SAARC Foodgrain Testing Reference Laboratory and directed the Secretariat to request India to designate the CGAL to start with. At the Seventh Meeting of the Board (New Delhi, November 2014), India informed that it would share the programme details and CGAL working procedures among the Member States. Accordingly, the following information has been received and circulated among the Member States: The Central Grains Analysis Laboratory (CGAL) was set up in Department of Agriculture in 1945 and housed in Jam Nagar House, New Delhi. When the offices of the Ministry of Agriculture were shifted to Krishi Bhawan in 1956, the CGAL was also relocated from Jam Nagar to Krishi Bhawan. In its initial phase the CGAL catered to the need of analyzing samples of foodgrains mainly wheat and wheat flour, when Government used to allocate wheat from the Central Pool on a regular basis to Roller Flour Mills. Subsequently on separation of the Department of Food from the Ministry of Agriculture, the CGAL continued functioning under the Department of Food. Earlier foodgrain samples of the imported consignments from air mail and samples from flour Mills, Citizen Central Council, Central Cooperative Societies, procurement centres under complaints, Quality Control Cells and other sources of the Department used to come for quality analysis to the CGAL. With change in mandate and functions of the Department of Food and Public Distribution, work of the CGAL has expanded. Main Functions: The CGAL presently carries out the following functions: (i) Assessment of quality analysis of the samples of Central Pool foodgrains brought by Quality Control Officers of the Department from procurement centres, food storage depots, fair price shops 17

21 (ii) (iii) (iv) (v) etc. besides foodgrains samples collected from grain Mandies for quality assessment. Formulation of uniform specifications of quality of foodgrains for their procurement under the Minimum Support Price (MSP) operations based on the analysis of foodgrain samples. Classification of paddy or rice varieties received from State Governments as grade A and Common varieties. Assessment of quality of imported and or exported foodgrains on Government account vis-à-vis contractual specifications as and when required. Assessment of the Quality of foodgrain samples collected by Joint teams from the affected areas on the request of State Government/ UT Administrations for consideration of relaxations in uniform specifications. Quality Tests done in Central Grain Analysis Laboratory: Physical analysis of foodgrains (wheat, paddy, rice, coarse grains) viz Moisture content. Length-breadth ratio for classification of paddy/rice varieties, Gluten, protein content and determination of falling number in wheat and wheat products (atta & maida) and protein & dehusked grain in rice and milling of paddy to ascertain the quality of rice is done in Central Grain Analysis Laboratory. Capacity of CGAL to analyse foodgrain samples: The CGAL has capacity to analyse samples for physical parameters comprising tests for determination of moisture content, segregation of refractions like foreign matter, other food grains, damaged grains, pin point damaged, karnal bunt, slightly damaged grains, discolored grains, chalky grains, red grains, admixture of lower class, weevilled grains, 1000 kernel weight, Hectolitre weight, de-husked grains, shrivelled and broken grains, immature grains, shrunken grains etc. as per the requirement of the different commodities (Paddy, Rice, Wheat, coarse grain) and classification of paddy/ rice varieties. Besides physical analysis, facilities are available at the CGAL for chemical tests such as protein estimation, gluten (dry & wet) and falling number in wheat. 18

22 Intake of samples in CGAL: A representative sample of One Kg. from the foodgrain stocks from the SAARC Food Bank is required for Physical-chemical analysis. Sealed sample with separate packaging of at least 100gm grain in moisture proof polythene bag is required for determination of moisture content. A sample slip detailing address of the Storage Depot/Agency under the SAARC Food Bank, crop year, period of storage and preservation treatment given to the Commodity during storage, if any, and testing parameters required should be attached both inside and outside the bag containing samples. Analysis of samples at CGAL: Charges of analysis/testing of foodgrains samples from the SAARC Food Bank for basic tests are as under: Wheat: i) Physical Parameters (Foreign Mattar, Other foodgrains, Damaged grains, Slightly damaged grains, Shrivelled and Broken Grains, Weevilled Grains and Moisture content). ii) Chemical Parameters (Protein, Dry Gluten, Wet Gluten, Uric Acid, Free Fat Acidity, Total Ash and Acid insoluble Ash). Rice: i) Physical Parameters (foreign Matter, Other foodgrains, Damaged grains/slightly damaged grains, Discoloured grains, Chalky Grains, Red Grains, Admixture of lower class, De-husked grains and Moisture content). ii) Chemical parameters (Protein, Uric Acid, Free fat Acidity, Total Ash and Acid insoluble Ash). Charges: INRs. 3500/- per sample. Service Tax extra as applicable. 19

23 Other Conditions: Turnaround time: 5 to 7 working days from the date of receipt of samples. For special tests such as Classification of paddy varieties, Hardness index of individual kernel, individual kernel weights, diameters of wheat grains with Single Kernel Characterizations System (SKCS) 4100, separate communication will be required and rates will be informed accordingly. Payment is to be made through DD/NEFT in the name of DDO, Department of Food & Public Distribution, Krishi Bhawan, New Delhi. Address for Communication: The Joint Commissioner (Storage & Research) Government of India Ministry of Consumer Affairs, Food & Public Distribution Department of Food & Public Distribution Room No. 186, Krishi Bhawan, New Delhi Tel/Fax : jcsr.fpd@nic.in Website: ************ 20

24 Annex-I Agreement on establishisng the SAARC Food Security Reserve Preamble The Governments of Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka; Recalling the Declaration on South Asian Regional Cooperation signed in New Delhi in August 1983, which called for cooperative action with a view to promoting economic and social development in South Asia; Reaffirming their commitment to the realization of this objective by joining together in the establishment of the South Asian Association for Regional Cooperation and adopting a Charter in Dhaka in December 1985; Recognizing the importance of regional and sub-regional collective selfreliance with respect to food security as a means of combating the adverse effect of natural and man-made calamities; Recognizing further that the establishment of an emergency food security reserve by Member Countries of the South Asian Association for Regional Cooperation based on the principle of collective self-reliance would improve their food security; NOW THEREFORE, in a spirit of solidarity and mutual cooperation, have agreed as follows: 21

25 Article I Establishment of the SAARC Food Security Reserve 1. The Member Countries hereby agree to establish a SAARC Food Security Reserve (hereinafter referred to as the Reserve ) on the conditions and for the purpose described in this Agreement. 2. The Reserve shall be administered by the SAARC Food Security Reserve Board (hereinafter referred to as the Board ) provided for in Article VII. Article II The Reserve 1. The Reserve shall consist of wheat or rice or a combination thereof, (hereinafter referred to as foodgrains ) earmarked by the Member Countries exclusively for the purpose described in Article III. The foodgrains forming part of the Reserve shall remain the property of the Member Country that has earmarked them and shall be in addition to any national reserve that may be maintained by that Member Country. 2. Each Member Country undertakes to earmark as its share of the Reserve the amount of foodgrains allocated to it in the Schedule of this Agreement. The said Schedule shall be an integral part of this Agreement. 3. The Member Countries shall keep the Schedule under review and may amend it in the light of operating experience in accordance with the procedure laid down in Article XI. 22

26 4. A Member Country may, at any time, voluntarily earmark for the purpose provided for in this Agreement, foodgrains exceeding the amount allocated to it in the Schedule. In such a case the Member Country concerned may only withdraw the amount in excess of its allocation by giving six months advance written notice to the Board. 5. The quality of all foodgrains earmarked by the Member Countries shall be at least of fair average quality, or comply with any other quality standards laid down by the Board. 6. The Member Countries undertake to provide adequate storage facilities for the foodgrains that they have earmarked; to inspect the food grains periodically and to apply appropriate quality control measures, including turnover of the foodgrains, if necessary, with a view to ensuring that all times the foodgrains satisfy the required quality standards; and to replace forthwith any foodgrains that do not satisfy the said standards. In addition, the Member Countries agree to make every effort to comply with any guidelines on storage methods or quality control measures adopted by the Board. Article III Withdrawal of Foodgrains in an Emergency Each Member Country shall be entitled, on the conditions and in accordance with the procedures laid down in Article IV and/or Article VI, to draw on foodgrains forming part of the Reserve in the event of an emergency. An emergency shall mean a state or condition in which a Member Country, having suffered a severe and unexpected natural or man-made calamity, is unable to cope with such a state or condition by using its national reserve and is unable to procure the foodgrains it requires through normal trading transactions on account of balance of payments constraints. 23

27 Article IV Procedure for the Release of Foodgrains from the Reserve 1. The Member Country in need shall directly notify the other Member Country or countries of the emergency it is facing and the amount of foodgrains required. 2. The other Member Country or countries on being so requested shall take immediate steps to make necessary arrangements to ensure immediate and speedy release of the required foodgrains, subject to availability in the combination requested. 3. The prices, terms and conditions of payment in kind or otherwise in respect of the foodgrains so released shall be the subject of direct negotiations between the Member Countries concerned. 4. The requesting Member Country shall at the same time inform the Board of its request to the other Member Country or countries. Article V Replenishment of the Reserve 1. A Member Country that has released all or part of the foodgrains forming its share of the Reserve shall replace such foodgrains as soon as practicable and, in any event, not later than one calendar year following the date on which the release of the foodgrains took place. 2. A Member Country that has released all or part of the foodgrains forming its share of the Reserve shall notify the Board of such release, of the terms and conditions on which it was effected, and the date on which the foodgrains that had been released were replaced. 24

28 Article VI Procedure for the Withdrawal of Foodgrains by a Member Country from its Own Share of the Reserve 1. A Member Country in need shall be entitled to withdraw foodgrains from its own share of the Reserve. 2. In doing so it shall inform the Member Countries and the Board of such withdrawal. 3. It shall replace such foodgrains as soon as practicable and in any event not later than two calendar years following the date on which the release of the foodgrains took place. Article VII The SAARC Food Security Board 1. There shall be a Board of which each Member Country shall be a member. 2. Decisions of the Board shall be taken on the basis of unanimity. 3. The Board shall elect a Chairman and Vice-Chairman based on the principle of rotation among Member Countries whose terms of office shall be two years. Rules of Procedure for the meetings of the Board shall be the same as for other SAARC meetings. 4. The Board shall meet at least once a year. 5. The Board shall normally meet at the same place and time as the Standing Committee, preceding the annual Summit. 25

29 Article VIII Functions of the Board The functions of the Board shall include: 1. Undertaking a periodic review and assessment of the food situation and prospects in the region including factors such as production, consumption, trade, prices, quality and stocks of foodgrains. These periodic assessment reports shall be disseminated to all the Member Countries. 2. Examining immediate, short term and long term policy actions as may be considered necessary to ensure adequate supplies of basic food commodities in the region and to submit, on the basis of such examination, recommendations for appropriate action to the Council of Ministers. 3. Reviewing implementation of the provisions of the agreement, calling for such information from Member Countries as may be necessary for the effective administration of the Reserve ad issuing of guidelines of technical matters such as maintenance of stocks, storage conditions and quality control. 4. Keeping the Schedule to this Agreement under review. 5. Suggesting amendment to the Agreement, as and when considered necessary, in accordance with the procedure specified in Article XI. Article IX Secretariat The Board shall be assisted by the SAARC Secretariat. The Secretariat s responsibilities shall include monitoring all matters relating to the release of foodgrains from the Reserve and convening and servicing meetings of the Board. 26

30 Article X Entry into Force This Agreement shall enter into force on a date to be determined by the Council of Ministers provided that the Member Countries have collectively earmarked at least one hundred and twenty-five thousand metric tons of foodgrains on that date for the purpose of this Agreement. Article XI Amendment 1. A Member Country may propose any amendment to this Agreement by submitting the proposed amendment to the Board through SAARC Secretariat. 2. The Board may enclose the proposed amendment and submit it to the Council of Ministers for approval. Unless otherwise specifies, amendments shall enter into force as from the date of their approval by the Council of Ministers. Article XII Depositary 1. An original of this Agreement shall be deposited in the SAARC Secretariat. 2. The Secretary-General shall be the depositary of this Agreement and amendments thereto. 27

31 IN WITNESS WHEREOF, the undersigned plenipotentiaries being duly authorized thereto have signed this Agreement. SIGNED at Kathmandu on the Fourth Day of November One Thousand Nine Hundred and Eighty Seven in Eight originals in the English language. HUMAYUN RASHEED CHOUDHURY Minister of Foreign Affairs People s Republic of Bangladesh DAWA TSERING Minister of Foreign Affairs Kingdom of Bhutan K. NATWAR SINGH Minister of State for External Affairs Republic of India FATHULLA JAMEEL Minister of Foreign Affairs Republic of Maldives SHAILENDRA KUMAR UPADHYAYA Minister for Foreign Affairs & Land Reforms His Majesty s Government of Nepal ZAIN NOORANI Minister of State for Foreign Affairs Islamic Republic of Pakistan A. C. SHAHUL HAMEED Minister of Foreign Affairs Democratic Socialist Republic of Sri Lanka 28

32 SCHEDULE In Metric Tons Country Share of the Reserve Bangladesh 21,000 Bhutan 180 India 1,53,200 Maldives 20 Nepal 3,600 Pakistan 19,000 Sri Lanka 2,800 Total 1,99,800 SAARC FOOD SECURITY RESERVE (Position of the Reserve as on 1 January 2002) In Metric Tons Country Share of the Reserve Bangladesh 40,000 Bhutan 180 India 1,53,200 Maldives 200 Nepal 4,000 Pakistan 40,000 Sri Lanka 4,000 Total 2,41,580 29

33 ADDENDUM Amendment to Article III of the Agreement The SAARC Council of Ministers at its Twenty-second Session held in Kathmandu, Nepal, on 2-3 January 2002, approved the amendment to Article III of the Agreement on Establishing the SAARC Food Security Reserve with immediate effect. The amended Article now reads as follows: Article III Withdrawal of Foodgrains in an Emergency Each Member Country shall be entitled, on the conditions and in accordance with the procedures laid down in Article IV and/or Article VI, to draw on foodgrains forming part of the Reserve in the event of an emergency. An emergency shall mean a state or condition in which a Member Country, having suffered a severe and unexpected natural or man-made calamity, is unable to cope with such a state or condition by using its national reserve. 30

34 AGREEMENT ON ESTABLISHING THE SAARC FOOD BANK Annex-II PREAMBLE The Governments of the SAARC (South Asian Association for Regional Cooperation) Member States comprising Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka hereinafter referred to as Member Countries ; Recalling the Declaration on South Asian Regional Cooperation signed in New Delhi in August 1983, which called for cooperative action with a view to promoting economic and social development in South Asia; Reaffirming their commitment to the realization of this objective by joining together in the establishment of the South Asian Association for Regional Cooperation and adopting a Charter in Dhaka in December 1985; Recognizing the importance of regional and sub-regional collective selfreliance with respect to food security as a means of combating the adverse effect of natural and man-made calamities; Recognizing further that the establishment of a regional food reserve by Member Countries based on the principle of collective self-reliance would improve their food security; NOW THEREFORE, in a spirit of solidarity and mutual cooperation, have agreed as follows: ARTICLE I Establishment of the SAARC Food Bank 1. The Member Countries hereby agree to establish a SAARC Food Bank (hereinafter referred to as the Food Bank ) for the purposes and on the conditions described in this Agreement. 31

35 2. The Food Bank shall be administered by the SAARC Food Bank Board (hereinafter referred to as the Board ), as provided for in Article X. ARTICLE II Objectives The objectives of the Food Bank shall be: a. to act as a regional food security reserve for the SAARC Member Countries during normal time food shortages and emergencies; and b. to provide regional support to national food security efforts; foster intercountry partnerships and regional integration, and solve regional food shortages through collective action. ARTICLE III The Reserve 1. The Reserve, to be maintained under the Food Bank (hereinafter referred to as the Reserve ), shall consist of wheat or rice or a combination thereof (hereinafter referred to as food grains ) earmarked by the Member Countries exclusively for the purpose described in Article V. 2. The Reserve shall remain the property of the Member Country that has earmarked it and shall be in addition to any national reserve that may be maintained by that Member Country. 3. Each Member Country undertakes to earmark as its assessed share of the Reserve the amount of food grains allocated to it in the Schedule-I of this Agreement and to keep the Board informed of the quantum of its reserve with locations of the designated godowns. 4. The Member Countries shall keep the Schedule-I under review and may amend it in the light of operating experience in accordance with the procedure laid down in Article XV. 5. A Member Country may, at any time, voluntarily earmark for the purpose provided for in this Agreement food grains exceeding the amount allocated to it in the Schedule-I. 32

36 ARTICLE IV Quality of the Reserve 1. The quality of all earmarked food grains shall be of fair average quality, or comply with any other quality standards laid down by the Board. Each Member Country undertakes to maintain its reserve as per specifications in the Schedule-II of this Agreement. The Board shall review the specifications periodically. 2. Each Member Country undertakes to: (a) provide adequate storage facilities for the food grains that it has earmarked; (b) inspect the food grains periodically; (c) apply appropriate quality control measures, including turnover of the food grains, if necessary, with a view to ensuring that all times the food grains satisfy the required quality standards; and (d) replace forthwith any food grains that do not satisfy the said standards. In addition, each Member Country agrees to undertake every effort to comply with any guidelines on storage methods or quality control measures adopted by the Board. ARTICLE V Withdrawal of Foodgrains 1. Each Member Country shall be entitled, on the conditions and in accordance with the procedures laid down in Article III, Article VI and/or Article VIII, to draw on food grains forming part of the Reserve in the event of a food emergency and/or shortage. 2. A food emergency shall mean a state or condition in which a Member Country, having suffered a severe and unexpected natural or man made calamity, is unable to cope with such a state of condition by using its national reserve. 3. A food shortage shall mean a state or condition in which a Member Country has suffered a production shortfall and /or storage shortfall, and finds it difficult to cope with such a state or condition by using its national reserve, provided that the production of food grains in the current year is lower than the average of the production of the previous three years by 8 percent. However, on specific cases a Member Country may initiate a request on seasonal basis considering the impact of such seasonal shortfall on annual production. 33

37 4. The Board, based on the experiences of operations of the Food Bank, shall periodically review the minimum agreed percentage of shortfall as mentioned in Paragraph 3 of this Article. ARTICLE VI Procedure for the Release of Foodgrains from the Reserve 1. The Member Country in need shall directly notify, through its designated Nodal Point(s), the other Member Country or countries of the food emergency or shortage it is facing and the amount of foodgrains required. 2. The other Member Country or countries on being so requested shall take immediate steps to make necessary arrangements to ensure immediate and speedy release of the required food grains, subject to availability in the combination requested. 3. The requesting Member Country shall at the same time inform the Board of its request to the other Member Country or countries to coordinate. ARTICLE VII Replenishment of the Reserve 1. A Member Country that has released all or part of the food grains forming its share of the Reserve shall replace such foodgrains as soon as practicable and, in any event, not later than one calendar year following the date on which the release of the food grains took place. 2. A Member Country that has released all or part of the food grains forming its share of the Reserve shall at an early date notify the Board of such release, of the terms and conditions on which it was effected, and the date on which the food grains that had been released were replaced. ARTICLE VIII Procedure for the Withdrawal of Foodgrains by a Member Country from its Own Share of the Reserve 1. A Member Country in need shall be entitled to immediate withdrawal of food grains from its assessed reserve in case of emergencies under intimation to the 34

38 Member Countries and the Board, and in any other cases by giving three months advance notice to the Member Countries and the Board of such withdrawal. 2. It shall replace such foodgrains as soon as practicable and in any event not later than two years following the date on which the release of the food grains took place. 3. A Member Country in need shall be entitled to immediate withdrawal of foodgrains from its voluntary reserve in case of emergencies under intimation to the Member Countries and the Board, and in other cases by giving at least one month s advance written notice to the Member Countries and the Board. ARTICLE IX Determination of Price 1. The prices, terms and conditions of payment, in kind or otherwise, in respect of the foodgrains so released shall be the subject of direct negotiations between the Member Countries concerned, based on the guidelines to be approved by the Board for determination of price, which shall be reviewed periodically. 2. The requesting Member Country shall specify the need (i.e. food shortage or emergency) while making the request. In the case of emergency, the humanitarian aspects would be given due importance while determining prices. 3. The determination of prices shall be done in accordance with the following broad principles: a. Price quoted, in general, shall be lower than prices generally charged or quoted for countries beyond the region; b. Price shall be representative of the market, both domestic and international, and may be adjusted suitably to reflect seasonal variations and the price movements in the recent past; and c. A responding Member Country shall endeavour to accord, as far as possible, national treatment in respect of calculating the cost components such as the ones related to storage, internal freight, interests, insurance and overhead charges, margin of losses etc., while maintaining its reserve and making releases. 35

39 ARTICLE X Institutional Arrangements 1. There shall be a Board, of which each Member Country shall be a member, to administer functioning of the Food Bank and for its policy making. 2. Rules of Procedure for the meetings of the Board shall be the same as for other SAARC meetings. 3. Decisions and recommendations of the Board shall be taken on the basis of unanimity. 4. The Board shall elect a Chairperson based on the principle of rotation among Member Countries whose terms of office shall be the duration from one annual meeting to the next annual meeting. 5. The Board shall meet at least once a year or more often as considered necessary. 6. Each Member country shall designate Nodal Point(s), responsible for transacting all business at the national level related to operations of the Food Bank. 7. Private sector importer(s) in a Member Country in need may apply to the designated Nodal Point(s) of that country, who shall transact all activities on behalf of the private sector importer(s) and shall be responsible for the transaction(s). The Member Countries may develop appropriate guidelines for involving the private sector, in conformity with its national legislations, procedures and requirements. ARTICLE XI Functions of the Board The functions of the Board shall include: 1. Undertaking a periodic review and assessment of the food situation and prospects in the region, including factors, such as production, consumption, trade, prices, quality and stocks of foodgrains. These periodic assessment reports shall be disseminated to all the Member Countries. 36

40 2. Examining immediate, short term and long term policy actions as may be considered necessary to ensure adequate supplies of food grains in the region and to submit, on the basis of such examination, recommendations for appropriate action to the Council of Ministers. 3. Reviewing implementation of the provisions of the Agreement, calling for such information from Member Countries as may be necessary for the effective administration of the Food Bank and issuing of guidelines on technical matters, such as maintenance of stocks, storage conditions, quality control and price. 4. Assessing the demands of foodgrains and identification of institutions and organizations in Member Countries that are to be contacted in case of release and withdrawal from its Reserves. 5. Devising appropriate mechanism(s) to collect, compile, generate, analyse, and disseminate information to facilitate its own work. 6. Resolving any dispute or difference regarding the interpretation and application of the provisions of this Agreement and functioning of the Food Bank. 7. Keeping the Schedules to this Agreement under review. 8. Recommending amendment(s) to the Agreement, as and when considered necessary, in accordance with the procedure specified in Article XV. ARTICLE XII Miscellaneous 1. Schedule-I and Schedule-II shall be integral parts of this Agreement. 2. Expenditures relating to the functioning of the Food Bank shall be borne by the Member Countries proportionately as part of the SAARC Secretariat budget. ARTICLE XIII Secretariat 1. The Board shall be assisted by the SAARC Secretariat, which shall coordinate the work of the Board, monitor all matters relating to the release of foodgrains, and convene and service meetings of the Board. 37