Journal of Academic Research for Humanities (JARH) is a double-blind peer-review, Open Free Access, online Multidisciplinary Research Journal
Skip to main navigation menu Skip to main content Skip to site footer

Vol. 3 No. 2 (2023)
The International "Journal of Academic Research for Humanities"

Research Articles

Economic Analysis of Food Commodity Prices in Urban Food System: A Case Study of Rawalpindi

Published 10-04-2023

  • Zaheen Akhtar
    • ,
  • Dr Arshad Mahmoud Malik

Zaheen Akhtar
MPhil Scholar, PMAS-ARID Agriculture University Rawalpindi

Dr Arshad Mahmoud Malik
Associate Professor, Department of Economics, ARID Agriculture University Rawalpindi

Abstract

Pakistan is one of the countries facing high food price inflation in the world, especially in the latest period. The food system includes resources, production and transportation, processing, manufacturing, retail and food consumption sectors, incorporating its impacts on the environment, human health, and societal issues. Food price is an important indicator of agricultural production. The study is designed to analyze the role of food commodity prices and their different indicators in the urban food system, especially in the Rawalpindi district. The secondary data on the prices of food commodities were collected from various sources. The Augmented Dickey-Fuller (ADF) unit root test is used to evaluate the stationarity of the data. The data was stationary at first difference. The Johansen co-integration technique based VAR model and (VECM) was applied to explore long-run relationships. Maximum lag selection for the ADF unit root test has been determined using the Schwarz Information Criterion. The inflation expectations (inertia) are reflected in a 0.7-point increase in CPI food concerning the previous year’s change. To the extent that GDP per capita increases by one unit (one rupee), food price inflation increases by 0.0017 units. The finding reveals that household income and payment transfer strongly impact food prices compared to oil prices. It is concluded that there is demand-pull inflation instead of cost-push inflation. The government should take policy measures to control food inflation.

Keywords

Food commodities, Urban Food system, Augmented Dickey-Fuller test, Johansen cointegration test, VECM

PDF

References

  1. Ababa, A. (2014). The Federal Democratic Republic of Ethiopia central statistical agency population projection of Ethiopia for all regions at the Wereda level from 2014–2017. Addis Ababa: Central Statistical Agency.
  2. Abbott, P., & Borot de Battisti, A. (2008). Recent global food price shocks: Causes, consequences and lessons for African governments and donors. Journal of African Economies, 20(suppl_1), i12-i62.
  3. Ahsan, H., Iftikhar, Z., & Kemal, M. A. (2011). The determinants of food prices: A case study of Pakistan.
  4. Akram, A. A., Chowdhury, S., & Mobarak, A. M. (2016). Effects of emigration on rural labour markets (No. W23929). National Bureau of Economic Research.
  5. Antentas, J. M., & Vivas, E. (2014). Impact of the economic crisis on the right to a healthy diet. SESPAS report 2014. Gaceta sanitaria, 28, 58-61.
  6. Capone, R., Bilali, H. E., Debs, P., Cardone, G., & Driouech, N. (2014). Food system sustainability and food security: connecting the dots. Journal of Food Security, 2(1), 13-22.
  7. Fan, S., Teng, P., Chew, P., Smith, G., & Copeland, L. (2021). Food system resilience and COVID-19–Lessons from the Asian experience. Global Food Security, 28, 100501.
  8. FAO, (2009). Principles and methods for the risk assessment of chemicals in food. Environmental Health Criteria, 240.
  9. FAO-OECD (2012), “Agricultural Outlook 2012-2020”, Paris: OECD Publishing.
  10. FAO (2018). Food and Agriculture Organization of the United Nations-Statistic Division https://www. fao. org/faost at/en/# data.
  11. Gregory, C., Coleman-Jensen, A., & Singh, A. (2013). Household food security in the United States in 2013. USDA-ERS Economic Research Report, (173).
  12. Hameed, A., & Salam, A. (2020). Estimating the socio-economic factors of food insecurity in Pakistan: a regional level analysis.
  13. Hawkes, C., Parsons, K., & Wells, R. (2019). Brief 2: Understanding the food system: Why it matters for food policy.
  14. Headey, D. D., & Martin, W. J. (2016). The impact of food prices on poverty and food security. Annual Review of Resource Economics, 8, 329-351.
  15. Jones, A. D., & Ejeta, G. (2014). A new global agenda for nutrition and health: the importance of agriculture and food systems. Bulletin of the World Health Organization, 94(3), 228.
  16. Mitchell, D. (2008). A note on rising food prices. World Bank Policy Research Working Paper, (4682).
  17. Moussiaux, N., Peyre, M., Bonnet, P., Bebay, C., Bengoumi, M., & Tripodi, A. (2017). The value chain approach in one health: conceptual framing and focus on present applications and challenges. Frontiers in Veterinary Science, 4, 206.
  18. Muhammad, S., Shah, M. T., & Khan, S. (2010). Arsenic health risk assessment in drinking water and source apportionment using multivariate statistical techniques in Kohistan region, northern Pakistan. Food and Chemical Toxicology, 48(10), 2855-2864.
  19. Reyes, A., Haynes, M., Hanson, N., Angly, F. E., Heath, A. C., Rohwer, F., & Gordon, J. I. (2010). Viruses in the faecal microbiota of monozygotic twins and their mothers. Nature, 466(7304), 334-338.
  20. Roser, M., & Ritchie, H. (2021). Food prices. Our World in Data.
  21. Schnepf, R. (2013). Agriculture in the WTO Bali ministerial agreement. Washington, DC: Congressional Research Service.
  22. Sekhampu, T. J., & Dubihlela, D. (2012). The impact of rising food prices on the households in a low income township in South Africa. Mediterranean Journal of Social Sciences, 3(3), 165-165.
  23. Shankar, B. Dangour, A. D., & Mace, G., (2017). Food systems, nutrition, health and the environment. The Lancet Planetary Health.
  24. Thompson, J. (2009). Performance affects: Applied theatre and the end of effect. Springer.
  25. Timmer, C. P. (2008). Causes of high food prices (No. 128). ADB Economics Working Paper Series.
  26. Trostle, R. (2008). Fluctuating food commodity prices: A complex issue with no easy answers (No. 1490-2016-127721).
  27. von Braun, J., Afsana, K., Fresco, L., Hassan, M., & Torero, M. (2020). Food Systems–definition, concept and application for the UN food systems summit. Science and Innovations, 27.
  28. Zahoor T, RM Aadil, A Ishaq. (2008). Journal of food -Wiley online library.