Governments may use administrative tools to fight against rising food prices

The dramatic pace of the rising food prices could lead governments to use administrative tools to prevent from the riots that swept through the Middle Eastern and North African countries. According to commodity traders; central strategic food stocks and the increase of supports can appear in the toolbar, such as the introduction of trade restrictions – and not only in the developing countries.

“It is highly expected, that the role of policy will be stronger in food security issues in the future” – explained Alan Winney, president of Emerald Group, the leading grain trading group of Australia at an international conference in Dubai.

Alan Winney believes, that governments will put a strong emphasis to fight against increasing high food prices. In the Middle Eastern and North African countries the goverments are already increasing food imports and release the strategic stocks to freeze inflation, which was caused by the acceleration of food prices – reports ProfitLine.hu, after MTI.