Food Crisis due to Prices

©image: América Economía

January global data shows that food prices continue to rise and are already surpassing the 2008 prices.

And while the Central American economies are benefiting in part by the increase, for example by increasing revenues from coffee and sugar exports, they have not secured supply of basic traditional consumer products such as wheat, corn and beans; the basic foods of poor population. The already high prices are worsened by poor harvests due to bad weather.

Trying to improve the situation, the governments of the region are lowering tariffs, controlling prices and granting subsidies, but they are running the risk to convert these remedies in something worse than the original problem.

Source: americaeconomia.com

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