For this concluding piece on SDG 2 Zero Hunger, I will again borrow the statistics from the OIC report titled ‘Agriculture and Food Security in OIC Member Countries 2020’, mentioned in the last article.
The report states that the agricultural resources comprising water, arable land and manpower are aplenty in the Islamic block. The resources not only constitute a sizeable share of the global agricultural production but also its trade.
Pleasantly, the gross agricultural production index in the OIC block registered better performance compared with the developed countries and the world average, despite the non-availability of the most modern plant and equipment enjoyed by their superior counterparts.
OIC member countries have also been able to occupy half of the list for the top 20 global producers of major agricultural commodities and as a result, have witnessed a notable 30% increase in the total volume of agricultural trade during the period from 2010 to 2018. Unfortunately, most of the trading counterparties were from outside the OIC block, emphasizing the need to encourage greater intra-OIC trade.
A shining star which stands out in trying to combat hunger despite not being classified as an agricultural country is the UAE where Dubai — the commercial capital of the country — has developed the first of its kind and the largest international food endowment fund.
Started under the umbrella of the Mohammed Bin Rashid* Global Initiatives with 10 million meals in Ramadan of 2020, the program grew to 100 million in 2021 and is now expanded as a global humanitarian initiative to provide one billion meals to the world’s most underprivileged populations in food-insecure countries. Based on its remarkable success in a short span, my expectation for the program is to grow to 10 billion and perhaps to the trillion mark in the not-too-distant future.
The scheme is all-inclusive whereby in addition to government funding, the private sector also contributes with its corporate social responsibility while high-net-worth individuals also donate. Such innovative ideas need to be emulated jointly by the public and private sectors in the other well-to-do countries to help reduce and eliminate hunger from earth.
Now, on using Ushr as an effective tool for the dual purpose of hunger alleviation and food security, this is important to note that Ushr is Allah’s right on agricultural produce in the same way as Zakat is on wealth. Due to unknown reasons, while Zakat has been the focus of attention, importance has not been given to Ushr. Perhaps now is the right time to bring Ushr from oblivion and use it effectively since the deadline for SDG 2 is around the corner.
Therefore, the first thing the food-producing OIC countries need to do is to, similar to Pakistan, develop and promulgate a robust statute for the mandatory recovery of 10% of the non-perishable or storable agricultural produce from every farmer with the minimum production quantity of five Wasqs (or about 600–1,000 kgs depending on the nature of goods produced).
This minimum quantity, also called Nisab (as in Zakat), is based on a Hadith quoted in Sahih Muslim whereby Prophet Muhammad said: “There is no Zakat on grains or dates until such items weigh five Wasqs.”
There are different ratios (5%, 7.5% and 10%) for applying Ushr on the produce based on the means of irrigation whether through rainfall, wells–canals–springs, or a combination of all. The ratios differ depending on the extent of effort to fetch water for irrigation.
Rainfall water is effortlessly gained thus the charge is highest whereas wells–canals–springs require some effort hence 5%, and the combination of both shall be charged 7.5%. However, I have considered 10% as the flat rate so as not to confuse readers and because Ushr literally means 10%.
Before the Ushr law is passed and enforced, there shall be a need to install storage silos to avoid mounds of grains and other food items from getting spoiled. Here, meticulous effort shall be required to hire the right expertise since based on its nature, every produce shall need peculiar storage conditions viz. moisture monitoring, ventilation, temperature control, fumigation and a security system besides the other aspects specific to a country.
Moreover, the officials should be able to carefully estimate the types and overall quantity of the produce which shall be collected from farmers under the Ushr scheme to arrive at the need for the storing space. As Ushr is also applicable to livestock, it will not be feasible to receive live animals and instead cash should be collected based on the estimated cost price of the Ushr animals.
So, how do you get the funding to develop silos? Almost every Islamic country provides some or other types of food subsidies to the underprivileged on a perpetual basis. Constructing food silos will be a one-time investment and upon the successful implementation of Ushr, the need for subsidies shall considerably reduce, if not eliminated altogether. In view of this, the monetary authorities of the country should be able to stretch their finances or cut down the non-developmental expenses for a couple of years to build the needed storage capacity. As a last resort, the IsDB may build the silos and recover the investment through a long-term lease arrangement. There could also be the possibility to outsource this function to the private sector.
Once the adequate storage capacity is developed, the country shall need an army of staff for the collection, transportation and storage of the agricultural produce. This will create many job opportunities and reduce unemployment to that extent. The private sector will benefit from transportation of Ushr goods from farms to silos and for onward distribution to the needy.
Let me bring in some technology here since it is extremely effective in curbing corruption and enhancing efficiency. Silo engineering has also advanced with the rest of the industries, and it is wise to invest in modern silo systems where the produce shall not only remain fresh for a longer period but also there will be no chance of corruption and fraud since the entire process of ins and outs shall be digitized to always display the exact quantity.
The distribution of Ushr goods shall need technological help. I had mentioned in the SDG 1 articles that every Islamic country has a digital database of all its citizens, and they simply need to extract the data for the poor and needy for the purpose of local and global Zakat distribution. The same database can be used for SDG 2 too for the distribution of grain and other Ushr goods to needy families.
The families can be issued monthly e-ration vouchers to their cellphones based on the number of family members and the vouchers can be redeemed through a simple process of sending the code mentioned therein to a dedicated number. This will trigger the Ushr control center to arrange the delivery of the package comprising various commodities for the month.
The collection and distribution of Ushr goods shall require the establishment of a strong command and control center. This may not be difficult using the technology. The technology shall provide at any given point in time the accurate quantity of Ushr goods remaining in silos besides the expected new collection from the upcoming crops and the overall quantity needed on a month-to-month basis for say, up to a year. There could be a weekly bulletin from the Ushr authority to let the public now of this information.
What if a country faces an inadequate quantity of Ushr commodities to meet the demand for distribution among the poor and needy? Here, the OIC’s role shall be important as a coordinator between the Islamic countries whereby if one country is experiencing a shortfall in the quantity of the Ushr commodities, the OIC can arrange to meet the shortfall from another country with a surplus, provided the country facing the shortfall shall pay for the transportation and labor costs related to the goods.
This will require a pan-OIC command and control mechanism to keep track of how fairly or poorly each country is coping and to strengthen the weak areas. The mechanism shall prove to be very effective in case of crops getting destroyed in a country due to floods or diseases. Upon receiving an SOS from the affected country, the OIC shall immediately spring into action.
A reader commented on my suggestions to utilize the OIC secretariat for SDG 1, stating that perhaps I am expecting too much from this institution. He may have the same comment on SDG 2 but before that, I would like to clarify that my recommendations for relying on the OIC for assisting the Islamic countries are in line with its own objectives of alleviating poverty and ensuring food security in every Muslim country.
On one hand, by assisting in the distribution of Zakat related to SDG 1, the OIC shall work to achieve its own objective of poverty alleviation in all Islamic countries, and on the other, its role to oversee the Ushr goods shall serve the OIC’s food security aim.
While I agree to some extent that the OIC has not been as effective as the other blocks since it came into existence in 1969, nevertheless I also believe that there is always a time to reckon and perhaps this is the opportunity for the OIC to excel in ensuring that a majority of the Muslim countries achieve the United Nations Development Programme SDGs, especially SDG 1 and 2 which are the most critical ones.
To conclude the discussion on SDG 2, by now readers should be able to find out that the Islamic economic principles have been way ahead of time and provide the viable approaches and meaningful actions to ensure there is enough food to put on each family’s table. On the other hand, a farmer taking out Ushr is rewarded by Allah The Most Exalted with purified crops and increased productivity, similar to wealth when Zakat is paid on it.
The purpose of this educative series and the article is not to hurt any religious or commercial sentiments either consciously or even unwittingly.
Sohail Zubairi is an Islamic finance specialist, AAOIFI-certified Shariah advisor and auditor as well as CIAE-certified Islamic arbitrator and expert. He can be contacted at [email protected].
Next week: Discussion on another SDG shall commence.
*Sheikh Mohammed Bin Rashid Al Maktoum is the vice-president and the prime minister of the UAE and the ruler of Dubai. He actively and generously participates in global humanitarian efforts through other programs such as Dubai Cares and various other humanitarian initiatives.