Management tools should be used for price risk and it will help in the increment towards the responsiveness of the food system in case price increment through better accommodating markets for the assurance to the world price warnings reach more manufacturers to convince a supply response.
To decrease world food price volatility, suggested responses are to:
- Development of weather-tolerant crop varieties to decrease food production agitates
- Improvement towards the management of food-grain stock acquires and releases for the deduction, rather than amplification, local and world food price uncertainty;
- shifting towards the market-based biofuels policies which make the authorization more flexible
- Unblock trade across all over the markets for the diversity of short-term manufacture shocks dissipating the associated price effects; and
- Improvement of market transparency to deduct market confusion and the association in the large price alterations of following revisions to market information like production, stocks, and trade.
Recommended measures to deduct the negative jolt of price shocks on food security are:
(a) deduction of taxes and tariffs for lowering domestic prices,
(b) short-term meal and cash transfers to conserve buying power, and
(c) support for horticultural production to try to avoid a next season shortfall that could sum to local price increment.
