Thursday, June 2, 2022

Food insecurity may have dire effects

the war in Ukraine is driving up energy prices and prices of wheat n commodities.combined with logistics disruptions due to global lockdown and the export ban on wheat,palm oil,chicken etc,the result may be a looming food crisis and increasing hunger n malnutrition in lower income groups. if the govt doesnt form an emergency food supply committee,we will see skyrocketing inflation in food due to rise in petrol prices and hence transport cost in supply chain,rise in cost of fertiliser and feed result in rise of rice,vege,fruit,chicken and pork.with risk of climate change like change in weather pattern ,agriculture production and fishing may be adversely affected.Already in July,the govt will remove subsidy for animal feed and so price of beef,chicken n pork will skyrocket and cutback in protein will result in malnutrition. if govt imposes the goods and service tax at this time,it will dampen consumer demand and cause stagflation,a period of stagnant growth and rising inflation.this inflation is worsened by the depreciation of ringgit which causes soaring prices of imported food and intermediary goods.even the price of locally manufactured cars will soar when the govt reimposes sales and service tax again.the ordinary wage earners rise in salary is much smaller than the greater increase in inflation rate.Not only that ,the central banks hike in interest rate will increase the payment of mortgage in housing and car loans.this reduces the disposable income of the low and middle class income earners as house,car,food,and petrol bills amount to a big proportion of their take home pay.With the rise in childcare services and tuition fees,some lower income group families may be forced to remove their childten from school and make them work to help support the family.This is especially so in homes where the breadwinner is medically unfit to work or lose their jobs when businesses were closed down during pandemic lockdown. Instead of squabbling over whether tbey can keep their seat of power in politics or when to hold a new general election,the politicians need to put aside their self interest and start serving the peoples interest and protect their livelihood.The food security,the energy security,the need to diversify sources of food and release more land for agricultural instead of commercial use,the need to use genetic bioengineering,the import of more la0bour for agricultural activity and how to remedy effect of climate change on water supply. if they sweep it under the carpet,we may face a situation like Sri Lanka or worst an Arab Spring uprising of discontentment.just watched Wion news on youtube on the debt crisis in developing countries in which debt constitute 50% or more of the GDP.it has lead Sri Lanka on default on its debt repayment to international creditors and desperate borrowing from I M F to cover debt relief.

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