Food Security Assessment in Azad Jammu and Kashmir: Empirical Analysis of Dietary Diversity, Current and Project Food Demand and Supply-Demand Gap

Abstract

This study attempts to determine the dietary diversity score for different food groups and estimates the current demand for different food groups in AJK. Data for this study was collected from 1250 households covering all 10 administrative districts of AJK by following multi-stage sampling techniques through a comprehensive interview schedule. Ten commodity groups (Wheat, Rice, Milk, Meat, Vegetables, Fruits, Pulses, Oil/Ghee, Tea and Other food were developed for analysis. Linear Approximate-Almost Ideal Demand System (LA-AIDS) model was used for estimating food demand elasticities through Zellner’s Seemingly Unrelated Regression by using STATA software. All the 10 food groups were found normal goods, except milk and fruits (income elasticity higher than unity). This implies that in future demand for milk and fruits would increase more proportionately as income would increase. The own price elasticities of all 10-food groups were also found congruent to economic theory (Wheat-0.28, Rice-0.65, Milk-0.92, Meat-0.34, Fruits-0.61, Vegetables-0.21, Pulses-0.29, Oil and ghee-0.04, Tea-0.35 and Other food-0.32). The income and own price elasticities depicted that wheat, vegetables, pulses and oil and ghee are necessities as compared to other food groups. The cross-price elasticity illustrated that rice could be a substitute for wheat and wheat for rice in the State of AJK. The Berry’s Index (82.43) depicted that food was diverse on average with a minimum Index value of 61.31. The study of different factors in relation to Berry’s Index depicted that education and income significantly and positively affect Berry’s Index while location of household in urban or rural area do not affect diversification of food. Inclusion of all necessities in Food Stamp program and Ramadan package and efforts by agriculture and livestock department regarding improved production of food commodities are recommended.