Food wars threaten the world bigger than oil wars

The world is threatened by food wars on a scale greater than all the oil wars of the past. Sanni Verghese, CEO of Olam Agri, one of the world's largest agricultural traders, issued this warning, World of NAN reports with reference to FT.  

"We have fought many wars over oil. We will have bigger wars over food and water," he said at the Redburn Atlantic and Rothschild consumer conference. Trade barriers imposed by governments seeking to bolster domestic food supplies have exacerbated food inflation, the top executive said.

Major agricultural exporters have been blamed for the surge in food prices as food inflation has arisen, among other things, by increasing their profits. But market participants say 1,266 new trade restrictions and barriers in 154 countries have created an exaggerated imbalance in food supply and demand, which has led to accelerated price increases.

Verghese's concern is understandable. Global companies like Olam thrive on open trade and suffer from trade barriers. But he is right that protectionism is on the rise and will continue to grow, which will only exacerbate the global food crisis.

On the other hand, restrictions play an important role for farmers in developing countries, helping them achieve high profits in the domestic market and thereby balancing their market position with the giants.

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