World headed for ‘food wars’, warns major commodities trader

finance
Created 6/26/2024
Updated 6/26/2024

The world is heading towards "food wars" due to geopolitical tensions and climate change, warns Sunny Verghese, CEO of Olam Agri. He explained that trade barriers to secure domestic food stocks have worsened inflation, with 1,266 non-tariff trade barriers imposed by 154 countries in 2022 creating an exaggerated demand-supply imbalance. Wealthier nations are stockpiling strategic commodities, driving up prices. Protectionist policies and climate change are further aggravating global food insecurity. Verghese urged governments to take action, including implementing a carbon tax, to address these challenges.

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