No need to worry about food crisis

The serious drought hitting the United States this year has driven up the prices of corn, soybeans and wheat on the international market.

As the largest planter of these three crops, as well as being responsible for drawing up the rules of the international grain trade, the US certainly has the power to manipulate international food prices.

But there is still no need to worry about a food crisis or even famines in some parts of the world.

The global food stock and grain trade remains healthy, under control and in much better shape than in 2008, when a food crisis hit countries including Bangladesh. This was not caused by a reduction in grain output, but protectionism and speculation in the world grain market.

A similar situation occurred in 1947 in Bangladesh when the country actually had a good harvest.

The drought in the US is only likely to result in increased food prices, rather than a food crisis or famine, but only if trade manipulation and speculation are taken out of the equation.

It is high time for the international community to guard against trade protectionism and manipulated trade in the international market.

Otherwise, increased food prices will seriously aggravate inflationary pressures, making the global economic recovery more complicated and tougher.

Translated by Li Yang from the 21st Century Business Herald