Policy responses

Partnerships with the private sector to prevent price hikes
- Mexico: opted for PPPs and announced a price freeze on 150 basic-basket food products as part of a pact with the National Confederation of Chambers of Industry (Concamin). Food processors affiliated with the larges Mexican industrial trade groups agreed not to pass on their rising costs to consumers.
- Burkina Faso: negotiated with importers and wholesalers and announced indicative prices for some basic food staples like rice, oil, and sugar.
- Jordan: as a result of an agreement between the Government and the private sector, prices of rice and sugar were printed on all packages to avoid retail mark-ups. Government also launched a consumer awareness campaign and publishing price lists of selected basic commodities.

Links and references

http://www.fao.org/fileadmin/user_upload/ISFP/pdf_for_site_Country_Response_to_the_Food_Security.pdf

Pros In the short-run: enables the government to achieve price controls and thus halt increasing prices without interventions, such as through subsidies or ordering sanctions against manufacturers.

Cons Medium to long run: Likely to reduce private storage or marketing activities and reduce incentives for producers. It might be uncertain as up to when the private sector will not pass rising costs onto the consumers.

Minimum conditions Need to ensure that negotiated government-private sector deals involve the largest market players (processors, wholesalers, traders).