Fear of food shortage and high prices hover over United States of America due to the current intense drought,the worst over five decades.
World Resources Institute says that recent record warm temperatures, combined with low precipitation have combined to make the situation even worse than either factor alone.The situation causes worry of food shortage as plants continue to dry up.
The United Nation’s food agency has warned against the kind of export bans, tariffs and buying binges that worsened the price surge four years ago.
“There is potential for a situation to develop like we had back in 2007/08,” the Food and Agriculture Organisation’s senior economist and grain analyst Abdolreza Abbassian told Reuters.
“There is an expectation that this time around we will not pursue bad policies and intervene in the market by restrictions, and if that doesn’t happen we will not see such a serious situation as 2007/08. But if those policies get repeated, anything is possible.”