China warns of food security risks as Iran war threatens global supplies
The country has ample grain supplies but could still face challenges if extreme weather or global conflict spark global shortages, Beijing says
The country has sufficient staple grain supplies, but Beijing said the nation’s food sector still faced structural challenges, including a weak processing industry and a lack of high-quality crop varieties in some areas.
“Risks of sharp swings in global food prices remain, driven by factors such as extreme weather, geopolitical conflicts and speculative capital,” said Liu Huanxin, a commissioner at the National Food and Strategic Reserves Administration, in the report released earlier this month by the National Development and Reform Commission (NDRC).
Price fluctuations could impact domestic market expectations, ripple through downstream industries and complicate Beijing’s efforts to stabilise costs and food supplies, officials cautioned in the document.
Disruptions to the strategic waterway have pushed up prices for oil, natural gas and fertilisers since the war began on February 28, amplifying global risks.
04:04
How US-Israeli strikes on Iran are sending shock waves through global energy markets
“The clock is ticking,” FAO chief economist Maximo Torero said on Monday, as delays risked raising input costs and hitting crop yields.
“The last thing we want is lower crop yields and higher commodity prices and food inflation for the next year,” he said.