A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

China takes steps to fight price volatility in agricultural markets

 

14 June 2010



Volatility in agricultural markets continues in full swing and scatters its bad seeds here and there throughout the world. The latest case can be found in China, where soaring food prices recently occurred following to the incidence of climate hazards and the resurgence of speculation.

Subsequent to the long-lasting bearish trend recorded since the 2008 subprime mortgage crisis, agricultural commodities seem to have again become appealing to short-term investors on most international exchanges. And speculators targeted some products––such a grain, potatoes or tea––more than others.

For the Chinese government, speculation represents one of the major grounds for the inflation observed in the past few weeks. Mindful of these risks and threats, it has already implemented some measures to fight speculative behavior. “Offenders making significant profits by speculating on agricultural products will be subjected to penalties ranging from 200,000 and one million yuans. Any illegally acquired profit will immediately be seized and carry penalties reaching fivefold the amount of such profits,” stated Zhou Wang Jun, Deputy Director of the Price Department at the National Development and Reform Commission.

Just like the United States––even if the proposed measure do vary––China has thus become aware of the detrimental effects that speculation can generate on agricultural commodities: Rising food insecurity, hunger riots when prices are too high, uncontrollable human migrations, etc… So many threats that powerful nations are trying to prevent through a better supervision of price volatility in agricultural commodities, with the exception of Europe, which for now is standing aside on this issue.

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Paris, 24 April 2019