Extremely new alt causes to food insecurity.

Domestic food price inflation remains high around the world. Information from the latest month between February 2023 and May 2023 for which food price inflation data are available shows high inflation in most low- and middle-income countries, with inflation higher than 5% in in 63.2% of low-income countries, 79.5% of lower-middle-income countries, and 67% of upper-middle-income countries, with many experiencing double-digit inflation. In addition, 78.9% of high-income countries are experiencing high food price inflation. The most-affected countries are in Africa, North America, Latin America, South Asia, Europe, and Central Asia. In real terms, food price inflation exceeded overall inflation in 80.1% of the 166 countries where data is available.

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Since the last Update, two weeks ago, the agricultural, export, and cereal price indices closed 6%, 4%, and 10% higher, respectively. An increase in maize and wheat prices, which closed 12% and 14% higher, respectively, after declining in the first half of July, drove the increase in the cereal price index, whereas rice prices have remained stable. On a year-on-year basis, maize and wheat prices are 15% and 17% lower, while rice prices are 16% higher. Maize, wheat, and rice prices are 8%, 11%, and 3% higher, respectively, than in January 2021. (See “pink sheet” data for agricultural commodity and food commodity prices indices, updated monthly.)

On July 17, 2023, Russia announced that it would not renew the Black Sea Grain Initiative (BSGI). The markets had anticipated Russia's move because of ongoing geopolitical tensions, so grain markets exhibited minimal immediate response to Russia's withdrawal, with future prices for key grains and oilseeds increasing only slightly. Wheat futures jumped 3% on July 17 but remained well below peak levels of the previous year. Similarly, corn and soybean futures surged before returning to pre-announcement levels. Despite Russia's decision, global commodity markets were still relatively favorable. The July 2023 edition of the Agricultural Market Information System Market Monitor revealed improved wheat production prospects in several countries, including Canada, Kazakhstan, and Türkiye. Maize production forecasts for 2023 remained nearly unchanged, and rice and soybean production forecasts experienced marginal adjustments.

On July 19, to ensure availability of non-basmati white rice and limit price increases in the domestic market, the government of India amended its export policy on non-basmati white rice from “Free with export duty of 20%,” which it had imposed in September 2022, to “Prohibited,” with immediate effect. Although the export ban is likely to lower domestic prices for consumers (and producers) because India is the world's dominant rice exporter (accounting for nearly 40% of the global rice market), it could cause considerable increases in world prices and induce price volatility. The export ban comes at a time of heightened global concerns about international global food prices following Russia’s exit from the BSGI.

FAO's 2023 State of Food Insecurity and Nutrition in the World report highlights the state of global hunger and food insecurity and the challenges and opportunities that urbanization presents in the context of agrifood systems. Global hunger, measured according to prevalence of undernourishment, remained relatively unchanged from 2021 to 2022 but is still significantly higher than before the pandemic. Approximately 9.2% of the world’s population faced hunger in 2022, compared with 7.9% in 2019. Moderate or severe food insecurity affected 29.6% of the global population (2.4 billion people) in 2022, with 11.3% being severely food insecure. Food insecurity disproportionately affects women and people in rural areas. More than 3.1 billion people worldwide (42%) were unable to afford a healthy diet in 2021 (134 million more than in 2019).

Urbanization is driving changes in agrifood systems, presenting challenges and opportunities. Challenges include availability of cheap, energy-dense, unhealthy foods; limited availability of fruits and vegetables; exclusion of small farmers from formal value chains; and loss of land and natural capital due to urban expansion. Urbanization also provides opportunities for income generation, expanded food value chains, and access to nutritious foods for farmers.

Following Russia’s invasion of Ukraine, trade-related policies imposed by countries have surged. The global food crisis has been partially made worse by the growing number of food trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices. As of June 5, 2023, twenty countries have implemented 27 food export bans, and 10 have implemented 14 export-limiting measures.