Food security at risk without global cooperation, authorities warn
Amidst the global food crisis, caused by soaring prices worldwide due to the Russian war in Ukraine and volatile weather conditions, India's ban on rice exports has raised concerns about food security.
The International Monetary Fund (IMF) has proposed that several countries review their food export policies to address the increasing food security concerns.
However, the National Economic Social Development Council (NESDC) is confident that Thailand is well-prepared to handle the food security issue with a comprehensive crisis response plan in place. The Thailand Development Research Institute (TDRI) has assessed that in 2024, the El Niño phenomenon could lead to increased food prices, as agricultural production is expected to decrease.
The food security situation has escalated globally, as rising crop prices from the conflict have impacted food production. The World Bank reported on July 31 that food inflation remains high worldwide. Data from February to May indicated that 63.2% of low-income countries, 79.5% of lower-middle-income countries, and 67% of upper-middle-income countries are facing inflation rates above 5%. Many countries are grappling with double-digit inflation rates.
Notably, 78.9% of high-income countries are facing high food inflation. Regions most affected include Africa, North America, Latin America, South Asia, Europe, and Central Asia.
In reality, all economies are facing higher food inflation rates, with 80.1% of the 166 countries surveyed by the World Bank showing increased agricultural export and crop prices in July. Corn and wheat prices increased by 12% and 14%, respectively, during the first half of July, contributing to higher food inflation.
However, rice prices remained stable. When compared annually, corn and wheat prices dropped by 15% and 17%, respectively, since January 2021. Comparing July 2021 prices, corn increased by 8%, wheat by 11%, and rice by 3%.
On July 17, 2023, Russia announced it was ending the agreement on exporting crops from Ukraine and Russia through the Black Sea mediated by the United Nations and Turkey, as the conditions for Russia's crop production were not being met. This measure was designed to ensure global food security and has been extended multiple times since its initial implementation in July 2021.
On July 19, 2023, the Indian government amended its policy to ban the export of non-basmati rice immediately to ensure sufficient rice supply domestically, even though this would affect the global rice price. India is a major rice exporter, accounting for almost 40% of the global market. In 2022, India's rice exports totaled 55.4 million tonnes, significantly higher than the combined exports of the four following countries, namely Thailand, Vietnam, Pakistan, and the United States.
The IMF warned that India's reduction of rice exports could exacerbate food price volatility worldwide and urged Indian Prime Minister Narendra Modi to carefully reconsider this policy, especially in light of crucial upcoming elections this year. India has been grappling with high tomato prices, leading to thefts, and consumers have been travelling to Nepal to buy tomatoes due to scarcity.
It is clear that the world is facing a severe food crisis, with multiple factors contributing to the rising food prices and food security concerns. Countries like India, a major player in the rice market, have implemented measures to protect domestic food supplies, which can have significant repercussions on global food prices and availability. A comprehensive crisis response plan and international cooperation are essential to tackle this global challenge, authorities stress.
