Tackling the crisis of rising global food prices
Global food prices are characterised by year-to-year volatility and periodic sharp spikes. The crisis can emerge in the form of food shortages, trade disruptions, a rise and spread in hunger and poverty levels, a depletion of foreign exchange reserves for net food importing countries etc. Because of these widespread ramifications of food price shocks, it becomes imperative to understand the real causes of such shocks and devise effective mechanisms to deal with them.
Crises and history
- Food Price crises- Historical data on food prices compiled by international agencies such as the Food and Agriculture Organization of the United Nations, the World Bank/International Monetary Fund show that since the onset and the adoption of Green Revolution technology in the early 1960s, the world has been struck thrice by food price crises.
- Triggered by factors outside agriculture - All the three food price crises during 19731976, 200712, and the recent one which began towards the end of 2020 have one thing in common — they were triggered by factors outside agriculture.
- Stronger severity of shock- The interval between two consecutive price shocks has narrowed down considerably and the severity of shock is turning stronger.