Export restrictions do not help solve the food crisis
The Russian-Ukrainian conflict This has led to a tightening of the global food supply, pushing up prices at the fastest rate ever. To cope with the risk of supply shortage, many countries have chosen to limit the export of important food items. However, this protectionist trend is said to have many potential risks and cannot be a long-term solution for life food crisis Currently.
According to experts, many countries have chosen to limit food exports to both stabilize the supply soon, protect the domestic market, and not have to spend as much money on the budget as when using support policies. price. However, this is expected to cause shortages and increase in food prices globally, increasing inflation risks. Poor countries will suffer the most.
“Put yourself in the shoes of people in low- or middle-income countries where you’re going to have to spend at least 50 percent of your income on food and then all of a sudden these items go up in price. That is the reality that is happening in many parts of the world,” said Arif Hussain, chief economist of the World Food Program.
The Russia-Ukraine conflict has squeezed global food supplies, pushing prices up at the fastest rate ever. (Artwork – Photo: Reuters)
Export restrictions are also not a sustainable solution in the long term because global trade requires a reciprocal balance between countries. India – a country that has just restricted exports of wheat and sugar is also one of the first countries to oppose Indonesia’s suspension of palm oil exports in April. Experts recommend, trade and increase output is really the solution to the current crisis problem.
Ms. Kristalina Georgieva – Director General of the International Monetary Fund (IMF) said: “There are two things that need to be done and must be done quickly. One is to prevent trade restrictive measures, when there are up to 30. countries restrict their exports of food items, which only makes the crisis worse, and second, to increase food production wherever possible. financial support for farmers to produce more”.
In order to increase production, the lifting of trade restrictions is very necessary, because farmers will not be able to enjoy production until they can sell their products to foreign markets at a low price. good.
“The majority of our total production is for exports. If the ban lasts too long, everything will become chaotic, manufacturers will lose motivation to increase production,” said Mr. Sahat Sinaga. – General Director of the Indonesian Vegetable Oil Association said.
Indonesia last week had to reverse a decision to suspend exports of palm oil – an important product of the country, after only 3 weeks of application. This is considered a necessary move in the context that the ban has had a negative effect on the palm oil industry, which employs 17 million people, causing about $ 3 billion in losses.
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