Even in high-income countries, food inflation is as high as 70 percent. Africa, North America, Latin America, South Asia, Europe and Central Asia are the countries with the highest food price increases. About 80 percent of the 166 countries have food price inflation higher than overall inflation.
A fortnight ago, there was a price hike of up to 10 percent for grains in the agricultural sector. Maize and wheat prices have risen by 12-14 percent respectively. After prices fell in July, the grain price index prices rose. Maize, wheat and rice prices are up to 11 percent higher than in January 2021. On July 19, the Indian government had banned the export of non-Basmati white rice to ensure availability of non-Basmati white rice and reduce prices in the domestic market.
An export ban followed
The export ban may reduce the domestic market price of green vegetables. India is one of the largest exporters of rice in the world. Exports account for about 40 percent of the global rice market. Non-arrival of rice from India may lead to rise in rice prices in various countries in the global market. The export ban comes amid growing concerns about rising global food prices
About 9.2 percent of the world’s population faces hunger in 2022. 11.3 percent of the population is severely food insecure. Reports indicate that 42 percent of people worldwide do not have affordable access to healthy food.
Russia’s invasion of Ukraine has also affected trade policies and partly contributed to the worsening of the global food crisis. As of June 5, 2023, twenty countries have implemented export bans on food products. 10 countries have restricted the export of products.