Indonesian Minister Projects 20 Percent Rise in Global Food Prices by End-2022

BALI, KOMPAS.com - Global food prices can potentially rise by 20 percent by the end of 2022, according to Indonesia’s Finance Minister Sri Mulyani Indrawati.

“The world food prices had jumped by almost 13 percent in March 2022. It had the possibility to rise further,” State News Antara quoted Sri Mulyani during the G20 Indonesia High-Level Seminar in Nusa Dua, Bali, Friday, July 15.

The minister said that this condition was causal to the rising hunger levels globally. The conflict between Russia and Ukraine and the worsening export restrictions have exacerbated the impact of the Covid-19 pandemic, thereby resulting in supply-demand mismatches and supply disruptions that had pushed up food prices.

Challenges in the global economy are likely to continue and force food prices to increase, she added.

Also read: G20 Foreign Ministers Urged to ‘Find a Way Forward’ on Ukraine, Food

“The current situation in 2022 is projected to worsen, and this is not good news for all of us.”

According to the minister, the Covid-19 pandemic and conflict in Russia were likely to worsen the food security situation this year.

Besides, the fertilizer crisis that threatens the world can also likely worsen and prolong the food crisis, even until 2023 and beyond. Thus, the world must work together to solve this food crisis issue.

Sri Mulyani called to apply all financing mechanisms to save lives and strengthen financial and social stability, especially for low-income and developing countries.

“A good macroeconomic policy must be maintained to thrive and address this problem,” she said.

Also read: G20 Foreign Ministers Meet in Bali

Sri Mulyani stated that the food security and food crisis were discussed during the G20 forum. During Indonesia’s G20 presidency, members of the major economies identified the pressing need to solve such problems as well as take concrete steps and cooperate with international organizations to address the issue of food security, especially for countries in need.

Indonesia, which holds the rotating presidency of the G20 Presidency, also presses for concrete actions to address the increasing food crisis and related challenges, she concluded.

Sources: State News Antara