The poor suffer with fluxuating prices

The World Development Movement, a UK based NGO has been leading the movement to regulate food speculation as it relates to the often devastating rise in food prices.

In this recent CNN article, Deborah Doane explains that rising food prices are not good for all, and often times, least benefical to the farmer that these markets were designed to protect.

“Rising prices is a good thing, we hear. It sends price signals to the market to ensure growing investment in agriculture to feed a growing population. If only this were so. Price volatility helps no-one other than a few wealthy investors.

And when prices fall rapidly, as they did briefly in May, pity the farmer who has no idea which price “signal” to follow. Is it up? Or is it down? They may choose to hoard their stocks, awaiting price rises, only to find out that prices fall; or they may choose to sell, having lost out on thousands”.

 

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~ by Kate on June 22, 2011.

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