Possible Strategies for Enhancing Food Security

The policy brief examines the drivers of food insecurity in low- and middle-income countries (LMICs), highlighting a 'ratchet effect' where domestic food prices remain high even as global prices fall. It attributes recent price spikes to agribusiness profiteering and financial speculation rather than supply shortages. To combat this, the author proposes the establishment of public buffer stocks, countercyclical interventions in commodity futures markets, stricter financial regulation of global commodity exchanges, and capital flow management to reduce currency volatility. The document specifically suggests that the South African G20 presidency could lead an expert review with the FAO and UNCTAD to stabilise global food prices.

• Global food price increases in the first half of 2022 were not primarily caused by supply shortages from the Ukraine War, but by the actions of large agribusinesses and financial speculators.
• Low- and middle-income countries (LMICs) experience a 'ratchet effect' where domestic food prices continue to rise even when the FAO Global Food Price Index declines, with the most severe inflation occurring in the lowest-income countries.
• Currency depreciation in LMICs, driven by tighter monetary policies and higher interest rates in advanced economies, has increased the cost of imported food and contributed to debt distress in at least 70 countries.
• Public buffer stocks of essential grains can reduce price volatility, ensure affordable consumer prices, and encourage climate-resilient and sustainable agricultural practices.
• To reduce excessive financialisation and price volatility, global commodity markets in the US and EU require re-regulation, including the elimination of the 'swap-dealer loophole' to prevent purely financial institutions from participating in futures markets.
• The South African G20 presidency is positioned to lead efforts on buffer stocks, capital flow management, and the initiation of an expert review with the FAO and UNCTAD to examine speculative drivers of food insecurity.

APA

GHOSH, J. (2024). Possible Strategies for Enhancing Food Security. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_7_G20FoodSecurity.pdf

Chicago

GHOSH, JAYATI. Possible Strategies for Enhancing Food Security. South African Institute of International Affairs, 2024. https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_7_G20FoodSecurity.pdf.

Wikipedia

{{cite report |last1=GHOSH |first1=JAYATI |title=Possible Strategies for Enhancing Food Security |publisher=South African Institute of International Affairs |date=7 September 2024 |url=https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_7_G20FoodSecurity.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ghosh2024possible, author = {GHOSH, JAYATI}, title = {{Possible Strategies for Enhancing Food Security}}, institution = {South African Institute of International Affairs}, year = {2024}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_7_G20FoodSecurity.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }