Droughts, cereal prices, and price stabilization options

Chapter 9, “Droughts, Cereal Prices, and Price Stabilization Options,” looks at price volatility, causes, and policy options. Increases in cereal prices in Ethiopia often raise concerns about adverse effects for poor net consumers. In particular, the frequent natural calamities—especially droughts—i...

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Autores principales: Dorosh, Paul A., Smart, Jenny, Minten, Bart, Stifel, David
Formato: Capítulo de libro
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2020
Materias:
Acceso en línea:https://hdl.handle.net/10568/143250
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author Dorosh, Paul A.
Smart, Jenny
Minten, Bart
Stifel, David
author_browse Dorosh, Paul A.
Minten, Bart
Smart, Jenny
Stifel, David
author_facet Dorosh, Paul A.
Smart, Jenny
Minten, Bart
Stifel, David
author_sort Dorosh, Paul A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Chapter 9, “Droughts, Cereal Prices, and Price Stabilization Options,” looks at price volatility, causes, and policy options. Increases in cereal prices in Ethiopia often raise concerns about adverse effects for poor net consumers. In particular, the frequent natural calamities—especially droughts—in Ethiopia can lead to important price hikes. But domestic prices of some cereals (especially maize) fluctuate every year with prices at harvest times substantially dropping, to the detriment of producers. Price stabilization efforts are therefore an important consideration for Ethiopian policymakers. This chapter sheds light on options for cereal price stabilization in Ethiopia drawing on experiences of other developing countries. The international experience in food price stabilization shows that while some countries have achieved success, the efforts of many others have actually destabilized market prices at great fiscal costs. When assessing the extent to which price stabilization efforts in Ethiopia were effective during the major El Niño–induced droughts of 2015 and 2016 (including food aid distributed through the PSNP), the authors find that an opportunity was missed to enhance food security and consumer welfare by allowing private-sector imports to minimize the rise in cereal prices as well as to reduce the fiscal costs to the government and donors.
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spelling CGSpace1432502025-11-06T03:51:03Z Droughts, cereal prices, and price stabilization options Dorosh, Paul A. Smart, Jenny Minten, Bart Stifel, David rain imports market prices policies cereals agricultural policies social protection maize trade agrifood systems drought food security food prices wheat social safety nets climate change Chapter 9, “Droughts, Cereal Prices, and Price Stabilization Options,” looks at price volatility, causes, and policy options. Increases in cereal prices in Ethiopia often raise concerns about adverse effects for poor net consumers. In particular, the frequent natural calamities—especially droughts—in Ethiopia can lead to important price hikes. But domestic prices of some cereals (especially maize) fluctuate every year with prices at harvest times substantially dropping, to the detriment of producers. Price stabilization efforts are therefore an important consideration for Ethiopian policymakers. This chapter sheds light on options for cereal price stabilization in Ethiopia drawing on experiences of other developing countries. The international experience in food price stabilization shows that while some countries have achieved success, the efforts of many others have actually destabilized market prices at great fiscal costs. When assessing the extent to which price stabilization efforts in Ethiopia were effective during the major El Niño–induced droughts of 2015 and 2016 (including food aid distributed through the PSNP), the authors find that an opportunity was missed to enhance food security and consumer welfare by allowing private-sector imports to minimize the rise in cereal prices as well as to reduce the fiscal costs to the government and donors. 2020-09-01 2024-05-22T12:12:44Z 2024-05-22T12:12:44Z Book Chapter https://hdl.handle.net/10568/143250 en https://doi.org/10.2499/9780896296916 https://doi.org/10.2499/9780896296930 Open Access application/pdf International Food Policy Research Institute Dorosh, Paul A.; Smart, Jenny; Minten, Bart; and Stifel, David. 2020. Droughts, cereal prices, and price stabilization options. In Ethiopia's agrifood system: Past trends, present challenges, and future scenarios, eds. Paul A. Dorosh and Bart Minten. Part Two: Evolving Markets and Household Consumption, Chapter 9, Pp. 259-297. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/9780896296916_09.
spellingShingle rain
imports
market prices
policies
cereals
agricultural policies
social protection
maize
trade
agrifood systems
drought
food security
food prices
wheat
social safety nets
climate change
Dorosh, Paul A.
Smart, Jenny
Minten, Bart
Stifel, David
Droughts, cereal prices, and price stabilization options
title Droughts, cereal prices, and price stabilization options
title_full Droughts, cereal prices, and price stabilization options
title_fullStr Droughts, cereal prices, and price stabilization options
title_full_unstemmed Droughts, cereal prices, and price stabilization options
title_short Droughts, cereal prices, and price stabilization options
title_sort droughts cereal prices and price stabilization options
topic rain
imports
market prices
policies
cereals
agricultural policies
social protection
maize
trade
agrifood systems
drought
food security
food prices
wheat
social safety nets
climate change
url https://hdl.handle.net/10568/143250
work_keys_str_mv AT doroshpaula droughtscerealpricesandpricestabilizationoptions
AT smartjenny droughtscerealpricesandpricestabilizationoptions
AT mintenbart droughtscerealpricesandpricestabilizationoptions
AT stifeldavid droughtscerealpricesandpricestabilizationoptions