International food provisions have to face an “enormous disruptions” because of the climate change. Climate around the world is changing day by day due to global warming and other factors. This may cause a massive inflation all over the world. An uncommonly intense heavy rain showers had resulted in ruthless flooding across many countries resulting in disruption of food increase. Food is becoming less available and more expensive, the price of food product such as rice, corn, wheat etc are rising day by day.
Sunny Varghese, chief executive officer at Olam International Ltd says, “The fact is that climate around the world is changing and that had caused a massive inflation and it may cause more substantial inflation”. Decrease in global food supplies has helped the United Nations Food & Agriculture Organization’s Price Index to a record the disruption in January. It had come into notice that in the month of January, 68% of food commodity got squander because of climate change. Food becomes less available and more expensive. Predictions are made that the prices of wheat and other grains are more likely to rise than decline in the next six months. Corn will rise up to 90 percent, wheat 80 percent and soybeans 49 percent and other grains may also rise to some extends. Declining of food supplies caused riots in 30 countries including Haiti and Egypt. May-delivery soybeans fell 0.2 percent to $14.13 a bushel, while wheat for delivery in the same month slipped 0.6 percent to $8.985 a bushel. Rough-rice for March delivery declined 2.4 percent to $15.36 per 100 pounds.
The International Food Policy Research Institute stated that “There will be an increasing in food crisis globally due to climate change. The increase in food products has become too high for some developing countries to buy the agricultural products they need, raising the risk of food riots.” Food inflation has become a great problem in the whole World. Effective measures are taken globally to overcome this problem. On January 24th the British government’s chief scientific officer said that “the case for urgent action in the global food system is now compelling.” The seed companies, food processors and grain traders proclaimed that, “The world needs a new vision for agriculture.” They promised to work with farmers and governments to boost farm output, cut emissions and reduce rural poverty.
India is also trying to prevail over this crisis.
In India, Food inflation increased to 16.44 per cent in the December - January. The cost of cereals, fruits, select vegetables and milk rose due to heavy rains and floods. An unusually heavy spell of late monsoon showers had resulted in severe flooding across many countries resulting in disruption of supplies. Prime Minister Man Mohan Singh said that the inflation would rise additional this year. India had managed to balance the Increase in food prices above 15 per cent in the past few months of January. He also said that the way India tackled the financial crisis was encouraging. The government had introduced the Mahatma Gandhi National Rural Employment Scheme of MGNREGA that guarantees each laborer a daily wage of Rs. 100 which will be adjusted to the consumer price index.
