IMF: Global food costs are still at an all-time high.

  IMF: Global food costs are still at an all-time high. The International Monetary Fund reports that despite a possible decline since the st...

 

IMF: Global food costs are still at an all-time high.

The International Monetary Fund reports that despite a possible decline since the start of Russia's war in Ukraine, global food prices are still at a record high.

This is stated in the section titled "Recent Development, Outlook, and IMF Engagement Reported" of the Most Recent Global Food Security Update.

According to a copy of the report that was downloaded on Thursday from the IMF website, by February 2023, food prices had recovered to prewar levels but were still much higher than they were back then.

According to the analysis, food prices rose by 39% between January 2020 and February 2022 as a result of supply-chain disruptions brought on by pandemics.

It claimed that constraints on important agricultural, oil, and fertilizer markets had been made worse by Russia's conflict in Ukraine and export restrictions in certain major production nations.

"Therefore, causing an additional 10% increase in global food prices between February and April 2022."

According to the data, global food prices reached a 60-year high in March 2022 after being adjusted for inflation.

Since then, the Black Sea Grain Initiative has made it possible for Ukraine to once again export grains.

"several export limits were lifted, and food production levels in several of the major exporting nations, notably Australia and Russia, exceeded forecasts.

It claimed that these trends have helped to reduce pressures on the majority of the food markets.

However, the analysis noted that while prices for rice globally were largely stable in 2022, they had accelerated in 2023.

It explained the rise by pointing to supply problems and increasing domestic demand in several exporting nations.

According to the data, global food prices reached a 60-year high in March 2022 after being adjusted for inflation.

Since then, the Black Sea Grain Initiative has made it possible for Ukraine to once again export grains.

"several export limits were lifted, and food production levels in several of the major exporting nations, notably Australia and Russia, exceeded forecasts.

It claimed that these trends have helped to reduce pressures on the majority of the food markets.

However, the analysis noted that while prices for rice globally were largely stable in 2022, they had accelerated in 2023.

It explained the rise by pointing to supply problems and increasing domestic demand in several exporting nations.

According to the analysis, providing targeted aid to the most vulnerable households could aid nations in containing the effects of the continuing food crisis while fostering longer-term resilience.

Combining this with measures to assist commerce and agricultural systems, such as ones that will help them better withstand climate shocks, is a good idea.

According to the report, the IMF has continued to support global initiatives to reduce food insecurity while collaborating closely with other international organizations.

The IMF has achieved this by offering guidance on policy, assistance in building capacity, and financial support via the Food Shock Window and Upper Credit Tranche Arrangements.

"Also through new commitments totaling 13.2 billion dollars since February 2022 to countries particularly affected by the global food crisis, of which 3.7 billion dollars have been disbursed as of March 2023," the statement continues.

According to the study, the World Bank Group has kept up its multisectoral response to the food and nutrition security (FNS) crisis, focusing on both immediate and long-term needs.

The World Bank's FNS commitments have been fulfilled to date to the tune of about 16 billion dollars, which have been split roughly evenly between short-term (8.8 billion) and long-term (7.2 billion) resilience responses.

"Disbursements from the World Bank's new lending stand at 2.6 billion dollars (21 percent of the commitment amounts), and on the portfolio side, 5.3 billion dollars has been disbursed since April 2022."