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In the wake of the Ukraine war and the soaring grain prices, several African countries are imposing bans on the export of food crops, to protect the domestic supply of food and maintain the food balance.
In the wake of the Ukraine war and the soaring grain prices, several African countries are imposing a ban on the export of food crops, to protect the domestic supply of food and maintain the food balance. Ghana and Uganda have recently announced their decision to ban the export of grains and other farm produce. The Ghanian government had imposed a temporary ban on exporting maize, rice, soybeans, and other grains in September last year. The government has announced that the ban will continue until September 2022.
Uganda has gone further ahead with imposing high taxes to prevent food exports to neighboring countries. Initially, the ban was introduced to ensure food security and increase local poultry and livestock production.
The decision by the governments has negatively impacted the farmers who are grappling with high costs of farm inputs this year, with many governments attributing the cost to the Ukraine war. Many economists are critical of the move and feel that there is a need to use market mechanisms by giving them incentives rather than the draconian and controlled approach that can trigger the black market if the government fails to negotiate appropriately with the farmers.They argue that the full impact of the Ukraine war is yet to arrive and therefore the governments should support businesses.
Also Read; https://trendsnafrica.com/
https://trendsnafrica.com/
