Food reserves to protect the poor (editorial)
The current food crisis has several causes-rising demand for food and feed, biofuels, high oil prices, climate change, stagnant agricultural productivity growth-but there is increasing evidence that the crisis is being made worse by the malfunctioning of world grain markets. Given the thinness of major markets for cereals, the restrictions on grain exports imposed by dozens of countries have resulted in additional price increases. A number of countries have adopted retail price controls, creating perverse incentives for producers.