Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

0:00
0:00

'Food nationalism' worries rise after India, Malaysia export bans. Policies stoke fears of further inflation, weaponization of supplies.

Soaring global food prices have prompted some Asian countries to halt exports of certain products to protect domestic consumers, raising fears of still higher inflation among their trade partners. More broadly, experts see an imminent risk of "food nationalism" spreading to more countries and products. At least one framed the phenomenon as another setback for globalization.
Effective Wednesday, India allows local businesses to export sugar only with special permission from the government. The measure is designed to "maintain domestic availability and price stability of sugar," and will run to Oct. 31 or until further notice, the government said on May 24.

India was the world's second-largest producer of sugar cane after Brazil in 2020 and the world's largest exporter of refined sugar that year, according to data from the United Nations' Food and Agriculture Organization (FAO).

The sugar export ban follows India's ban in mid-May on exports of wheat, for which it ranks as the world's second-largest producer. The authorities are trying to ensure domestic food security after recent hot weather raised concerns over crop yields.

Likewise, Malaysia, starting Wednesday, curbed chicken exports to address a domestic supply shortage and stabilize prices. This includes live poultry, whole carcasses, chilled and frozen meat, chicken parts and chicken-based products, according to a statement from the Ministry of Agriculture and Food Industries. It has not set a date set for resuming shipments.

The moves by India and Malaysia come as global food inflation accelerates. The FAO's benchmark Food Price Index, which covers meat, dairy, cereals, vegetable oils and sugar, hit 158.5 in April, up 30% from a year earlier. The rise is largely attributed to supply and logistics disruptions caused by the Ukraine war and the COVID-19 pandemic.

Indonesia also halted exports of palm oil in April, although it lifted the ban in May.

"On the whole, I would say that export bans add on to the upside pressure on food prices," Priyanka Kishore, an economist at Oxford Economics, told Nikkei Asia, adding that "the impact is more pronounced for the direct trade partners."

Consider the relationship between Malaysia and Singapore.

The city-state counts on its neighbor for about a third of its chicken imports. Consumers in Singapore rushed to buy fresh chicken at markets after the Malaysian announcement last week.

For developing nations and lower-income households, the uptrend in food prices is particularly worrying.

"Food scarcity, or an unattainable price, especially for poor nations, will cause inflation to rise and cause social unrest much faster than rising oil prices," warned Jeffrey Halley, a senior market analyst at Oanda, a brokerage. "We are likely to see more food nationalism this year," he said.

Even before Russia invaded Ukraine -- both countries are major grain suppliers -- food nationalism was heating up amid the COVID-19 crisis. Vietnam, for example, temporarily halted rice exports in the early days of the pandemic to secure its own supply.

The COVID crisis triggered protectionism not only for food but also other essentials. Some countries prioritized securing coronavirus vaccines for their own people, leading to wide gaps in inoculation rates and leaving people in poorer economies vulnerable.

Akio Shibata, president of the Natural Resource Research Institute in Japan, told Nikkei that the food supply chain had previously been globalizing, like so much else after the World Trade Organization was launched in the 1990s. The basic model was to produce food in low-cost countries and ship it cheaply to consuming nations.

But that trend has been reversed in recent years due to multiple factors, including rising consumption in emerging economies like China, climate change and the recent disruptions, all of which push up prices.

"As prices rise, naturally, given the nature of food, countries change their stance to prioritize domestic protection and domestic supply, and then export if there is surplus capacity," Shibata said. "In the past, the idea was that the more we globalize and commit to the international markets, the more we can contribute to food security. But this is changing."

Looking ahead, Shibata cautioned that as long as prices keep rising, protectionist measures are likely to ripple across more countries and food categories.

There are countervailing effects, he said, noting, "If prices soar, some countries could increase production, and the market could adjust." But as abnormal weather conditions intensify worldwide and affect major crops like rice, wheat, corn and soybeans in key producing countries, "it is a bit inconceivable that the situation will settle down" anytime soon, Shibata said.

He also warned that export bans by large producers with massive stockpiles, such as Russia and China, could become weapons in a broader geopolitical battle.

"If major food-producing countries switch from exports to domestic consumption, there will be a food crisis" in some countries, he said. "If you categorize such countries into friendly or hostile countries, as Russia does, and say that you will provide aid [only] to friendly countries, you will end up using food as a weapon."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
German Finance Minister Criticizes Trump’s Attacks on Institutions
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Parents Abandon Child at Barcelona Airport Over Passport Issue
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
China Enforces Comprehensive Ban on Cryptocurrency Activities
Grok 4 Video plus Voice, can identify wildlife!
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
The UK Does Not Have a ‘Far-Right’ Problem
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
JD Vance Warns Europe Faces “Civilizational Suicide” Over Open Borders and Speech Limits
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
×