The food challenge
A persistent food inflation shows food supply will be one of the major binding constraints on our economic growth in the coming decades
Growing demand for food has meant that farmland has been one of the best asset classes for investors in recent years. Now the head of China’s sovereign wealth fund has said in an opinion piece published in the Financial Times newspaper that the fund will increase its focus on the global food supply chain. China has already been aggressively signing land deals in Africa and Latin America to enhance its food security. That activity could now increase further.
India has a similar set of problems. Food supply will be one of the major binding constraints on our economic growth in the coming decades. An early sign is persistent food inflation in recent years. India has to push up public investment in rural infrastructure, get private investment into food production and acquire food assets abroad. Reforming food markets can offer temporary respite but the long-term strategic challenge is daunting.
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