The world is currently facing a significant surge in sugar prices, reaching levels unseen since 2011. This escalation, largely due to reduced global supplies following unfavorable weather in key sugar-exporting countries like India and Thailand, is exacerbating food insecurity in developing nations.
In Nigeria, Africa’s largest economy, this surge has profound effects. High inflation rates compound the impact of rising sugar prices, a staple in the Nigerian diet. The cost increase strains household budgets and challenges industries reliant on sugar. Efforts to boost domestic production are ongoing, but Nigeria remains vulnerable to global market fluctuations.
This situation is particularly challenging for countries in sub-Saharan Africa, heavily reliant on sugar imports. The United Nations Food and Agriculture Organization predicts a 2% decline in global sugar production for the 2023-24 season, adding stress to these already strained economies.
THINK LIKE AN ECONOMIST!
Q1. Define the term ‘food insecurity’.
Q2. Explain how climatic conditions can affect global commodity prices like sugar.
Q3. Analyse the impact of rising sugar prices on Nigeria’s economy.
Q4. Discuss potential measures that could be taken by governments to mitigate the effects of such price surges.
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