‘Rice and wheat -- crops that account for about a third of the world’s calories -- have been making rapid climbs in spot and futures markets. For countries that rely on imports, this is creating an added financial burden just as the pandemic shatters their economies and erodes their purchasing power. In Nigeria, for example, the cost of rice in retail markets soared by more than 30% in the last four days of March alone...
‘To be clear, it’s likely the supply disruptions could prove temporary. And that will probably mean that wheat and rice will stabilise. In the last several years, food costs have been relatively benign thanks to plentiful supplies. Global rice and wheat reserves are both projected at all-time highs, according to the US Department of Agriculture.’
Read here (Bloomberg, April 6, 2020)
