The FINANCIAL -- The Asian Development Bank (ADB) and the Government of Japan will support efforts in Indonesia to reduce iron-deficiency anemia (IDA) among the poor by providing them with iron-fortified rice.
ADB's Board of Directors approved a second grant on food fortification for Indonesia. The US$2 million grant from the Japan Fund for Poverty Reduction will help to assess the feasibility, cost, and impact of providing iron-fortified rice under Indonesia's subsidized rice program, RASKIN.
RASKIN, one of the largest programs of its kind in the world, was set up by the Government of Indonesia during the 1997 Asian Financial Crisis to cushion the effects of rising prices and declining employment. Through RASKIN, the central government's National Procurement Corporation buys rice and local governments distribute it to low income families.
The first grant from the ADB, approved in February 2005, assisted in the development of multi-micronutrients that could be used to fortify foods and prevent IDA, as well as fortified palm oil with Vitamin A.
The second grant will address IDA in poor populations and will specifically assess the most cost-effective technology for rice fortification. It will also help to build capacity to produce fortified rice concentrate, provide equipment to rice mills supplying the RASKIN program, and create awareness of the benefits of iron-fortified rice among decision-makers, the private sector and RASKIN recipient households.
Most rice fortification programs tend to be commercial and target high and middle income households, who are informed and willing to pay a premium for more nutritious rice. The poor, who are most dependent on rice and most at risk of anemia, have yet to be reached.
IDA is the most widely prevalent nutritional deficiency in the world. It can raise the incidence of diseases and stunt physical and mental development of children, among others. IDA has a direct impact on poverty, especially through its impact on school participation and learning.
"Adding iron, folic acid, Vitamin A, and other micronutrients to staple foods like rice is one of the most sustainable and cost-effective ways to deliver key nutrients to the poor," says Barbara Lochmann, Senior Social Sector Specialist of ADB's Southeast Asia Department. "The project will develop lower cost applications for rice fortification technologies and demonstrate cost-benefit evidence to demonstrate the potential returns on public investment in rice fortification."
The project aims to deliver in one year around 24,000 metric tons of fortified rice to 800,000 people in two project areas. Small-scale rice fortification has been previously pilot-tested in Brazil, People's Republic of China, Colombia, India, and the Philippines.
The Japan Fund for Poverty Reduction is a grant facility set up in 2000 by the Government of Japan and ADB which provides direct support to poor communities.
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