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An economist's questions on food ... : Comments
By Bill Richmond, published 17/6/2008What are the political and economic factors behind the inability of some people to obtain sufficient food?
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At this moment in the Phillipines, there is a shortage of rice and the price has risen, but the farmer who grows the rice is not being paid more than previously.
Farmers are always price takers, not price makers. If we are prepared to pay more for grain as food, it will be sold to us rather than for bio-fuels. Furthermore, if the price is right, there will be an incentive for farmers to grow more grain for both food and bio-fuel.