Thumbnail Image

How Much Did Developing Country Domestic Staple Food Prices Increase During the World Food Crisis?

How Much Have They Declined?








Also available in:
No results found.

Related items

Showing items related by metadata.

  • Thumbnail Image
    Document
    Have Recent Increases in International Cereal Prices Been Transmitted to Domestic Economies?
    The experience in seven large Asian countries
    2008
    Also available in:
    No results found.

    International cereal prices (in US dollar terms) have been increasing since 2003, but it is domestic prices that affect food consumption and production. This paper analyzes, for seven large Asian countries, the extent to which domestic prices have increased since 2003 and presents several conclusions. First, the data show that the increases in world cereal prices have been accompanied by a real depreciation of the US dollar. For many countries (but not all), this depreciation has neutralized a s ubstantial proportion of the increase in world prices. Second, domestic commodity specific policies in several of these Asian countries have further stabilized domestic prices relative to the change in world prices. This has been especially true for rice, the main staple food in the region, but it is also true for wheat. On average, through the end of 2007, the increase in real domestic rice prices was about one-third of the increase in real US dollar world market rice prices. Third, for the spe cific cases analyzed here, producer or farmgate prices have changed by approximately the same percentage as consumer prices. Thus, in these Asian countries, domestic markets seem to be transmitting price changes between farmers and consumers rather efficiently. Fourth, the experience with urea fertilizer prices is more heterogeneous: some countries are following free trade, while others have stabilized prices in nominal terms.
  • Thumbnail Image
    Document
    Analyzing the impact of food price increases: assumptions about marketing margins can be crucial 2009
    Also available in:
    No results found.

    This paper shows the importance of explicitly considering marketing margins in analyses of the impact of price changes on the welfare of different segments of the population. Failure to acknowledge the implicit marketing assumptions embedded in an analysis that assumes equal percentage changes for both farm and consumer prices leads to a bias towards finding negative impacts of higher food prices. In addition, the bias is not necessarily uniform across income quintiles; thus, failure to explicit ly consider marketing margins could lead one to conclude that the poor are hurt relatively more than the rich by a price increase when in fact the opposite is true, or vice-versa. We provide rules of thumb and simple techniques that may help to ascertain, in many circumstances, the percentage change in consumer prices that is appropriate for a given percentage change in farm prices.
  • Thumbnail Image
    Book (series)
    Realigning policy interventions on agricultural prices
    Monitoring incentives in low- and middle-income countries during the first wave of COVID-19
    2022
    Also available in:
    No results found.

    COVID-19 has resulted in a shock to agrifood systems around the world, with the potential for low- and middle-income countries to be particularly affected. Although policy responses were more muted than during the 2007–2008 world food crisis, efforts to insulate from supply shocks and ensure local availability during COVID-19 have generally included export restrictions and import tariff reductions, among other responses. In an effort to enable rapid market monitoring and realignment, we develop a new indicator defined as a monthly nominal rate of protection “express” which seeks to isolate as much as possible the effect of trade and market policies on domestic prices in real-time in order to understand how they responded. This analysis examines changes to this indicator during the first wave of the pandemic in 27 low- and middle-income countries for the most-consumed staple cereals of the poor and food insecure. We show that agricultural price incentives declined by 12.6 percentage points compared to the same months in previous years, suggesting that retail domestic price spikes may have largely been mitigated or avoided. However, impacts varied across countries and commodities, and this indicator can serve as a tool for examining primary drivers of changes and conducting causal analysis to facilitate adequate agrifood policy responses to support economic recovery in the post-COVID-19 era.

Users also downloaded

Showing related downloaded files

No results found.