It was only a matter of time before growing anxiety over food supplies and prices across the globe induced action by nation-states and citizens alike. As 2022 motors along, concerns about the health of the global economy, the lingering hangover of the COVID-19 pandemic, as well as its recent return to China, and the economic consequences of the war in Ukraine have come together to create a perfect storm. Food prices are going through the roof in a number of nations, and it was only a matter of time before citizens took to the streets and protested.
Over the weekend Iran saw a wave of protests break out across the country over cuts in state subsidies on food. To be fair, Iranians already have a laundry list of grievances with their government and economic conditions always serve as a barometer of the population’s feelings. It comes as no surprise to see Iranian citizens come out in large numbers to protest the subsidy cuts, as well as other issues. The swift and brutal response by the Iranian government, however, has raised some eyebrows around the world. Tehran’s readiness to clampdown on and make an example of anti-government protesters is an indication the government expects prices to rise even more in the coming weeks. With the cut of subsidies last week, prices on a number of flour-based food staples rose in excess of 300%
There are also protests and street violence over rising food prices and inflation going on in Sri Lanka and Tajikistan. Those situations will be discussed in more detail later in the week.
Then there is the increasing worry over food supplies. India is moving to take pre-emptive action by restricting exports of wheat to create a safety cushion of sorts for its own population. The Indian government seeks to control rising prices and diminishing output due to global economic conditions and the extreme heat wave that has affected Indian wheat production. Predictably, India’s move has sent global prices skyrocketing and prompted the US and European Union to begin searching for solutions to improve food supply chains. Given the current conditions, Washington and Brussels need to hurry. At the present time, the situation worldwide appears fated to become significantly worse unless measures are taken within weeks.