VZCZCXRO3680
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGO #0178/01 0780720
ZNR UUUUU ZZH
O 190720Z MAR 09
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8792
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHBK/AMEMBASSY BANGKOK 2844
RUEHBJ/AMEMBASSY BEIJING 2224
RUEHBY/AMEMBASSY CANBERRA 1853
RUEHKA/AMEMBASSY DHAKA 5147
RUEHLO/AMEMBASSY LONDON 2083
RUEHNE/AMEMBASSY NEW DELHI 5327
RUEHUL/AMEMBASSY SEOUL 8924
RUEHTC/AMEMBASSY THE HAGUE 0717
RUEHKO/AMEMBASSY TOKYO 6500
RUEHCN/AMCONSUL CHENGDU 1737
RUEHCHI/AMCONSUL CHIANG MAI 2104
RUEHCI/AMCONSUL KOLKATA 0585
RHHMUNA/CDR USPACOM HONOLULU HI
RUEKJCS/JOINT STAFF WASHDC
RUCNDT/USMISSION USUN NEW YORK 2318
RUEHGV/USMISSION GENEVA 4332
RUEATRS/DEPT OF TREASURY WASHDC
RUEKJCS/DIA WASHDC
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 03 RANGOON 000178 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, INR/EAP, EEB, F, PRM 
DEPT PASS TO DEPT OF AGRICULTURE 
DEPT PASS TO USAID 
BANGKOK FOR USAID, USDA, REO 
PACOM FOR FPA 
TREASURY FOR OASIA 
 
E.O. 12958: N/A 
TAGS: EAGR ECON EFIN PREL PGOV BM
SUBJECT: BURMA: FOOD INSECURITY A GROWING CONCERN 
 
RANGOON 00000178  001.2 OF 003 
 
 
Summary 
------- 
 
¶1.  (SBU)  Although Burma's overall production of basic 
foodstuffs -- rice, beans, and cereals - is more than enough 
to meet domestic need, the GOB's restrictions on internal 
food distribution, as well as its emphasis on exporting food 
for profit, prevent sufficient domestically available food 
from reaching the more than five million Burmese who live 
below the food poverty line.  Feeding programs run by the 
World Food Programme (WFP) and NGOs support the most 
vulnerable populations, particularly marginalized ethnic 
groups living in Northern Rakhine State, Chin State, Shan 
State, and Magwe Division.  WFP continues to face a funding 
shortfall for its ongoing food distribution programs and has 
requested USD 1.2 million in USG assistance for 125,000 
Rohingya families.  Embassy Rangoon strongly encourages the 
Department to fund at least a portion of this successful and 
necessary program.  End Summary. 
 
Burma's Food Situation 
---------------------- 
 
¶2.  (SBU)  Agricultural production accounted for more than 44 
percent of GDP in Burma's 2007 fiscal year (which ended on 
March 31, 2008), and according to the Food and Agricultural 
Organization (FAO), more than 16 million Burmese out of a 
population of 55 million work in the agricultural sector. 
According to the Ministry of Agriculture, Burma produced 
approximately 20 million tons of rice, 4.7 million tons of 
pulses, 1.1 million tons of maize, and 158,000 tons of wheat 
in FY07. 
 
¶3.  (SBU)  In February, FAO and WFP released a joint Crop and 
Food Security Assessment which stated that Burma's overall 
agricultural production in FY08 (April 1,2008, to March 31, 
2009) will continue to exceed local demand, despite the 
effects of Cyclone Nargis on key rice producing areas.  The 
FAO assessment team determined that farmers in the Irrawaddy 
Delta, Burma's rice bowl, contend with salinated land, 
scarcity of seeds and other inputs, and low prices of rice 
and other commodities, which deter farmers from increasing 
production.  FAO estimates that although overall rice 
production in the Irrawaddy and Rangoon Divisions will drop 
by 13 and 9 percent in FY08 respectively compared to the 
prior year, Cyclone-affected areas are actually producing 
higher yields than many experts had predicted. 
 
Reasons for Food Insecurity 
--------------------------- 
 
¶4.  (SBU)  FAO and Ministry of Agriculture data indicate that 
on a macro level, Burma has a surplus of food -- Ministry of 
Agriculture officials even told us that the GOB expects an 
increase of rice and beans exports for FY08.  Nevertheless, 
food insecurity persists in many parts of the country on the 
micro level.  According to WFP, 52 of the 324 townships in 
Burma are highly vulnerable to food insecurity; most are 
located in Northern Rakhine State, Chin State, Shan State, 
and Magwe Division (the "dry zone"). 
 
 
RANGOON 00000178  002.2 OF 003 
 
 
¶5.  (SBU)  According to Burmese agricultural expert U Kyaw 
Tin, food insecurity is exacerbated by poor local 
agricultural production in many regions, caused by inferior 
seeds and insufficient fertilizer, as well as external 
factors such as the amount of rainfall and this year's rat 
infestation in Chin State.  However, U Kyaw Tin and other 
experts stress that the primary reason for Burma's food 
insecurity is poor economic policy.  The GOB maintains strict 
controls over the rice market to prevent a jump in prices, 
which in the past has caused political unrest.  Additionally, 
the GOB restricts the movement of food between states and 
divisions, which often creates a surplus of rice in some 
areas which can then be exported.  U Kyaw Tin observed that 
the government allows the military and crony companies to 
export rice that otherwise could be moved across internal 
borders to assist those who remain in need.  GOB officials 
apparently do not see the link between internal rice-movement 
restrictions and food insecurity.  Until these GOB policies 
change, food insecurity will likely persist. 
 
WFP Requests USG Funding 
------------------------ 
 
¶6.  (SBU)  According to WFP Country Director Chris Kaye, WFP 
Burma continues to experience a significant shortfall in its 
ongoing Protracted Relief and Recovery Operation (PRRO), 
which operates in Shan State, Chin State, Northern Rakhine 
State (NRS), Kachin State, and Magwe Division.  WFP has 
sufficient resources to fund its program through July, but 
needs an additional USD 16 million to fund the remainder of 
the three-year program, which assists 1.3 million Burmese 
living under the food poverty line.  If fully funded, WFP 
will provide more than 24,000 metric tons of food to 
vulnerable populations through the end of 2009, and run food 
for education, food for work, and mother and child nutrition 
support programs. 
 
¶7.  (SBU)  WFP is particularly concerned with providing 
assistance to the stateless Rohingya population of NRS.  In 
addition to providing food to the general NRS population, WFP 
runs a successful food for education program in NRS, feeding 
families of more than 125,000 students, thus freeing them to 
attend school rather than work to support the family.  In 
order to continue this program through December, WFP needs 
USD 4.8 million (part of the overall need of USD 16 million) 
which will be used to locally procure 7,500 metric tons of 
food.  Kaye stressed that a USG contribution of USD 1.2 
million would support the program for approximately two 
months, significantly contribute to the stabilization of the 
food security situation in NRS, and help prevent further 
Rohingya outflows from Burma. 
 
Comment and Recommendation 
-------------------------- 
 
¶8.  (SBU)  Food insecurity remains a real concern in Burma, 
with more than five million Burmese living under the food 
poverty line, according to the UN.  WFP programs provide 
invaluable assistance to the most vulnerable populations in 
NRS, Chin State, Shan State, and Magwe Division.  Embassy 
Rangoon strongly encourages the Department to fund WFP's 
 
RANGOON 00000178  003.2 OF 003 
 
 
request for USD 1.2 million -- or as much of that amount as 
may be available -- to assist the Rohingya population, one of 
the most vulnerable and persecuted ethnic groups in Burma. 
By providing food and thereby assisting children to receive 
an education, the USG would directly respond to what has 
become a regional Rohingya crisis by helping some of those 
who remain in Burma to have a somewhat better life. 
 
VAJDA