Intervention on biofuels and the Japan WTO rice stock to stabilise world food prices

Franck Galtier
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Franck Galtier: UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement

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Abstract: On international markets, prices of grains (wheat, maize) and vegetable oils (rapeseed, sunflower, soybean, palm) have been rising since mid-2020. Biofuels play a major part in this increase, and the war in Ukraine, which began in February 2022, has exacerbated it. Biofuels in fact link the price of these commodities to that of crude oil: when the crude oil price rises, the biofuels industry increases its demand for maize and vegetable oils. Temporarily limiting this industrial usage would reduce the price of these commodities. Moreover, in case of an increase in rice prices, one solution would be to authorise Japan to export the rice stock it has built up under World Trade Organization (WTO) rules. In order to prevent future crises, these two levers could be activated as soon as world prices of these agricultural commodities reach predetermined levels.

Keywords: Price; price stabilisation; price policy; food product; grain; wheat; maize; rice; vegetable oil; rapeseed oil; sunflower oil; palm oil; soybean oil; crude oil; biofuel; fossil fuels; economic crisis; food security; domestic market; world market; food stock; WTO; Africa; United States; world; developed country; developing country; Russia; Ukraine; European Union countries (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-agr, nep-cis, nep-ene and nep-int
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Published in Perspective, 2022, Crises et sécurité alimentaire : biocarburants et stock OMC de riz du Japon, 59, pp.1-4. ⟨10.19182/perspective/36954⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:cirad-03733988

DOI: 10.19182/perspective/36954

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