International practices against volatility and rising food prices

Issue № 3, 2023, article № 10, pages 97-107

Section: ABROAD

Language: Russian

Original language title: МЕЖДУНАРОДНЫЕ ПРАКТИКИ ПРОТИВОДЕЙСТВИЯ ВОЛАТИЛЬНОСТИ И РОСТУ ЦЕН НА ПРОДОВОЛЬСТВИЕ

Keywords: PRICE INCREASE, FOOD PRICE VOLATILITY, COUNTERMEASURES AGAINST PRICE GROWTH AND VOLATILITY, INTERNATIONAL EXPERIENCE, FOOD SECURITY, EXPORT BAN, SUPPORT FOR PRODUCERS, FOOD AID

Abstract: In the period 2000-2010 high-frequency fluctuations in food price volatility have been noted around the world. Since the end of 2021, a protracted period of abnormally high volatility has begun. The purpose of the article is to systematize international measures to counter excessive food price volatility in 2007-2008 and 2021-2022. The study is based on the data of the food price index and the indicator of food price anomalies, calculated according to the FAO methodology, both for the whole world and for individual countries. Despite the differences in the reasons causing the growth and volatility of food prices, the set of measures applied remains the same within the framework of trade policy, internal protection of producers, consumers and depends on the level of development of the country. The export ban is quite common. However, it can only be recommended as an emergency short-term measure, since restricting supply only exacerbates price volatility in the world market and ultimately drives up prices in the medium to long term. At the same time, the easing of import barriers in a situation of market instability is quite an adequate measure. Food aid programs for the socially unprotected segments of the population are more preferable than administrative price controls. Producer support is aimed at stabilizing their income, which can significantly decrease during the period of volatility in prices for both resources and agricultural products, instability and rising costs in logistics. This, in turn, can threaten food security. In Russia, almost all possible measures were used (with positive and negative assessments).

Authors: Potapova Aleksandra Andreevna