Price Volatility issues:
This is really a important issue particularly in developing countries
where accessible food in sufficient quantity and quality is very
difficult. This cyclical challenge is mainly arise from my own
observation due to misaligned/misguided/injected policies from the
above (i.e. policy makers) without tailoring to the context of a
specific country in question. In addition to that implementing even a
little logical policies as per their direction is cumbersome due to
bad governance and fragile political systems. It is also repeatedly
echoed that establishing modern market information system (for
instance avoiding of price information asymmetry), increasing food
production, developing logistics and infrastructure facilities could
reduce price volatility, However, the major challenge in this regard
is lack of systematic instruments to unnecessary transaction costs
linked to trading malpractices of brokers and traders. Very often,
these actors also use fraudulent pressure to break the effectiveness
of smooth of food and other durable goods marketing which finally
aggravates the already spike prices .Therefore, there is a need to
establish a robust system that could make both market actors that are
favored by market distortions and controlling bodies/government
agencies to be accountable and transparent. In this part, NGOs which
are experienced in the issues should render technical support.
Many authors argue that market information system supported with
high-tech and artificial intelligence would make a sensible result.
But, I feel that this might partially work for developing countries
where digital technologies literacy level or awareness is low and
wide digital divide among urban and rural within the same developing
countries.
The other that should be taken into consideration is the customers
buying behavior or responses to traders/brokers speculation.
basically, sense of scarcity is common among customers in developing.
countries particularly even in the case of temporal food supply
disruption/s. Consequently, the consumers are very often fell off with
the traders/brokers marketing deceiving techniques
which in effect influence the buyers/customers negatively. Therefore,
there is a need to make aware of the benefits of collective marketing
by which consumers collectively or in group could buy the items they
need from sources of product which essentially break the unnecessary
long market chain. The other thing is detaching price volatility from
using as political machinery particularly in fragile states. In this
part, NGOs could play their part.
Mr. Shirega Minuye