Rising food prices- “A global crisis: Action needed now to avoid poverty and

hunger”
Summary:
Food is no longer affordable item for everyone as it was in the past.
Skyrocketing food prices over last few years have made difficult for the poor to
afford the most essential items for daily need. Rising prices limit the
purchasing power of poor and pushes millions of people in poverty [ CITATION
Sin \l 1033 ]. There is snowball effect of rising price that ultimately leads to riots
and protest, as the people suffer from poverty and hunger. Governments,
policy makers and international bodies will have to adopt policy measures
through multi-pronged strategy to rein in over unbridle food prices.
Introduction:
Global food prices increased dramatically in late 2007 till 2008, in many cases
more than doubling within span of few months [ CITATION ByD \l 1033 ]. A sharp
escalation in basic food prices is of special concern to the world’s poor. All the
poor spend major portion of their household income on food item, and most
poor people depend on the farming and food production for their livelihood,
but they have very limited ability to adapt to sharp prices changes.
Consequently, rising food prices have caused protest and panic in developing
countries and in some developed countries and have presented the policy
maker and executive with serious challenges.
The study of 2007-2008 crisis aims to provide the comprehensive and balanced
review of cause and effects of crisis for the policy makers and researchers. It is
suitable point in time to reflect and analyze our understanding of crisis and
update the impact of crisis on the word’s poor. Indeed, without intervention to
fix significant problem in global food system, the food crisis of 2008 can be
repeated.
The purpose of this policy brief is highlighting the number of measures to
adopt in tackling the food crisis. The policy response should address two
challenges:
 To ensure the availability of sufficient food supplies in domestic market
 How to best support the consumers and most vulnerable member of
society.
Scope of the Problem:
The magnitude and scope of this crisis is significant as it influences and impact
all aspects of life. Poverty and hunger lead to multiple socio-economic
problems in society. From birth to well-being of person, the limited access to
nutritious food have unintended consequence on person throughout life.
Inflated food prices make it unaffordable for the major portion of society to fill
up their stomach for the day. Empty stomach person remains weak and
unproductive for the society. Only healthy and strong person can be
productive and contribute to development of society. These hardship force
families to sell off their assets and belonging to afford the food that long
lasting poverty trap that become difficult to escape. Even short-term
worsening of nutrition can lead to irreversible adverse effects, particularly
children.
Research Overview: The biggest threat to public health are hunger and
poverty. Each day 25,000 people, including more than 10,000 children, die
from hunger and related disease. The dangers are acute for those who spend
more than 60% of their income on food [ CITATION Hol \l 1033 ]. Comprehensive
assessment of different factors leading to crisis is essential to have workable
solution. Short-term and piecemeal approaches will only exacerbate the crisis.
Indeed, the more we assess the problem, the more we conclude that it is the
result of complex set of different factors rather than single factor. Following
set of interconnected factor leads to higher food prices.
 Energy Prices: Higher energy and oil price have a spiraling effect on the
almost everything. Energy is essential for input for production of good.
 Rapid Population growth: Our natural resources are limited and cannot
cater to the needs of every human. Exponential population growth
demands higher agricultural growth, and the current system is unable to
meet the needs of every human.
 Climate change: The drought and sudden weather shocks in food-
producing countries affect the supply of food item that in result in short
supply and consequently prices increases. A six-year drought in
Australia, a major what producer, has clearly contributed to reduce the
supply of food.
  Cartelization: Hoarding and stock piling is also putting huge pressure
on prices of food commodities. Artificial short supply create demand
that pushes the prices upward.
Policy Recommendation:
Policy makers are responsible for formulating the policies that maintain
equilibrium in the market. Every policy action should take in consultation with
relevant stakeholders based on the evidence. International bodies and
government are implementing set of policies to offset the impact of rising food
prices to protect the most vulnerable members of society.
Social protection program: Governments and international bodies should
introduce social protection system that provide the universal coverage to mall-
nourished and hungry to build social resilience and capacity to absorb the
future shocks. Increased financial support should be carried out by variety of
sources.
Price ceiling: Government can impose price ceiling and maintain a standard
price limit on essential food item. It will prevent the supplier to increase the
price above the set level.
Agriculture productivity: Investment in agriculture sector has become
inevitable. Agriculture productivity is essential to meet the demand of ever-
growing population. Agriculture productivity growth is only two percent a year-
this is very loo to cater to need of growing population. Policies and program
that aims to address the hurdles faced by small farmer will encourage public
private agriculture investment[ CITATION Hol \l 1033 ]. These measure with
improved access to finance facilities will increase agriculture contribution to
poverty reduction and economic growth.
Effective supply chain:
Conclusion:
The policy tools required to address the current crisis covers a broad range.
They include social protection and financial assistance for poor and hungry and
dramatically increased investment in agriculture productivity for better output.
Comprehensive action plan from the governments and international bodies is
required to achieve the food security. More consistent and reliable information
will enhance preparedness for new shocks and ensure that the action taken by
governments and international community are reducing the risk and effects of
high price on the most vulnerable people. For most of household, improving
agricultural productivity and profitability is key to achieve greater resilience.
National government bear the responsibility for responding to food crisis and
protecting the people. Ultimately, however, the reduction of threat of hunger
depend on the society’s determination, at all level, to resolve the problem and
make it continuing priority.

References
Fan, B. D. (n.d.). Global Food Crisis. IFPRI.

Holmes, J. (n.d.). loosing 25000 to hunger every day. UN.

Singh, S. (n.d.). Global food crisis: magnitude,causes and policy measure. Emerald Insight, 23-35.

[ CITATION Sin \l 1033 ]