INTERNATIONAL TRADE AND FOOD SECURITY: CAN PUBLIC STOCKHOLDING BE DISMISSED?

The food crisis of 2007-2008 led to a renewed interest in public stockholdings for food security purposes. Stock acquisition for food security is constrained by WTO rules. Developing countries petitioned the WTO to remove the constraint. The negotiations over stockholding subsidies have been acrimonious and confrontational. A peace clause is in effect while a permanent solution is sought. Opponents to expanding stockholdings argue that market induced trade can maintain food security. This research finds, for major cereal crops, that a market response should not be relied upon. Developing countries require policy options to maintain food security – one of which is stockholding