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Increasing world food prices: blessing or curse?

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  • Matovu, John Mary
  • Twimukye, Evarist P.
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    Abstract

    This study evaluates the potential impact of the recent world food prices on the Ugandan economy and possible policy options to respond to it. Uganda is largely a net exporter of some cereals whose prices increasing considerably especially maize. Using a recursive dynamic CGE model, we attempt to answer questions on who are the beneficiaries and losers after the surge in food prices. The rural producers of maize tend to benefit considerably with their poverty levels reducing. On the other hand, the urban purchasers of cereals are affected owing to the higher prices of food. this therefore suggests that the Ugandan government should take advantage of the increasing food prices by stimulating and undertaking policies that would enhance productivity especially for crops where on the urban population, the government could design targeted programs for the urban poor.

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    Bibliographic Info

    Paper provided by Economic Policy Research Centre (EPRC) in its series Research Series with number 54804.

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    Date of creation: 2009
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    Handle: RePEc:ags:eprcrs:54804

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    Related research

    Keywords: Urban poor; Food prices; CGE model; Food security; Matovu; Twimukye; Economic Policy Research centre; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Crop Production/Industries; Farm Management; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Livestock Production/Industries; Production Economics;

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    Cited by:
    1. Delphine Boutin, 2011. "D'une crise à l'autre : mesurer l'impact des prix alimentaires sur la pauvreté," Working Papers hal-00637608, HAL.
    2. Van Campenhout, Bjorn & Pauw, Karl & Minot, Nicholas, 2013. "The impact of food prices shocks in Uganda: First-order versus long-run effects:," IFPRI discussion papers 1284, International Food Policy Research Institute (IFPRI).

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