Prices of internationally traded food have declined for the third consecutive quarter since their historical peak in August 2012. Increased production, declining demand from large importers, and increasing stocks are exerting downward pressures on international prices, but global markets continue to be tight for maize. Prices remain high with recent price increases in May and June. Uncertainties surrounding weather conditions and domestic policy
decisions among key producers warrant close scrutiny.
Domestic prices have generally followed seasonal trends, but wide variations remain. Large increases in domestic prices between February and June 2013 are due to unfavorable weather conditions, dwindling supplies, currency devaluations, and large public purchases. In addition, consumer price subsidies, far from being a thing of the past, continue to be used despite their past record of meager benefits to the poor, high fiscal costs, corruption episodes, and questionable nutritional effects.
