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Food protectionism fuels global inflation and hunger

Traders grapple with Indonesian palm oil export ban while concerns mount over India’s heatwave and wheat crop

Rising protectionism is exacerbating chaos in global food markets brought on by the war in Ukraine, with governments clamping down on exports of staples including grains, cooking oil and pulses.

Soaring food prices and, in some cases, the threat of social unrest have led to an increase in exporters banning overseas sales or putting in place other restrictions such as taxes or quotas. These protectionist steps have only driven up the food import bill further for countries dependent on international markets for important food commodities, hitting some of the poorest in the world.

Beata Javorcik, chief economist at the European Bank for Reconstruction and Development, warned protectionism would only artificially boost prices, already at record levels, fuelling global food insecurity. “This is going to increase global poverty rates. And in extreme situations, it may induce authoritarian regimes to become more oppressive,” she said.

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