According to a Bloomberg report, global food prices are the highest in the past six years. Due to increased demand from China, weak supply chain and unfavorable weather, the cost of everything from soybean to palm oil has jumped. Some banks have warned that the world is turning into a commodities supercycle. Everyday rising prices have directly affected the customers.
Protest over food in Sudan
Food is the biggest problem in Sudan at the moment. Protests have been going on in Sudan since the beginning of the year. Farmers in India revolted against efforts to bring down prices. Russia and Argentina have restricted crop shipments to suppress prices at home. Even rich countries like United Arab Emirates are facing such problems. Emirates are considering possible price caps on certain foods.read this also- IPO 2021: March is earning opportunity, can be rich by investing money in these IPOs! Learn details ..
Impact on both rich and poor countries
Explain that this effect has had on both rich and poor countries. For rich western countries, inflation may be just a matter of changing the product brand, but in the poorest nations it can mean the difference between sending a child to school or earning money. Yet in its largest middle-income countries, the effects may be the most affected for the world. In the most populous countries where the cost of food is a large part of the consumer price basket. Governments are under more pressure to take action there. According to Oxford Economics Ltd., Latin America’s largest economy is among emerging markets due to the steepest rise in food prices in the past year due to a steady decline in the currency.
Order to freeze food prices in Russia
In recent weeks the world’s No.1 wheat exporter has implemented tariffs designed to curb overseas sales and reduce domestic prices. Russia’s largest retailers were also ordered to freeze some food prices, with more than a third of potatoes and carrots from last year. Such limits can leave inflation behind and eliminate fuel. The Audit Chamber estimated in January that food prices would increase if the ban was lifted at the end of March.
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Hoarding of things like noodles, rice and pasta
Food prices in Africa’s largest economy remain for more than half of the country’s inflation index and have risen at the fastest pace in more than 12 years in January. An average Nigerian family spends more than 50% of their budget on food.
After the fall in oil prices, foreign exchange reserves are needed to import the improved goods. Supply bottlenecks and agitations on farmers have also put a burden on the supply of agricultural commodities. There is hoarding of things like noodles, rice and pasta in many countries of the world.
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Farmers’ movement in India
India is the world’s largest exporter of rice and the second largest producer of wheat after America, home to the most arable land. Despite this, the country has the highest rate of child malnutrition at this time. Currently food remains at the center of political tension in India. Protests by farmers have increased on a move by Prime Minister Narendra Modi’s government to liberalize the market for crops. At the same time, rising fuel prices have troubled the general public.