Emerging Nations Address Rising Food Costs

On 25 January 2011 the Wall Street Journal reported on the efforts of emerging nations to address rising food costs.  The efforts are made as commodity futures have spiked due to rising fuel costs and climate disruptions such as the Australian flood.

Efforts are being made in order to avoid an increase food costs and economic disruptions such as the ones experienced in 2008.  The list of government efforts being made by developing countries includes: price caps, export bans and rules to counter commodity speculation.

Some examples given include: 1) Indonesia removing import tariffs on more than 50 items including wheat, soybeans, fertilizer and animal feed and plans to raise taxes on palm-oil exports to 25% from 20% next month; 2) India extending bans on the exportation of lentils and cooking oil; 3) China and several countries in the Middle East strengthening price controls; and 4) South Korea lowering import tariffs on some foods.

For more see:  Bellman, Eric and Alex Frangos, "Emerging Nations Tackle Food Costs," Wall Street Journal, Asia Section, 25 January 2011.