Annals of Social Sciences and Perspective (ISSN: 2707-7063) Vol.2, No.

1, 2021, 21-33

Volume & Issues Obtainable at The Women University Multan

Annals of Social Sciences and Perspective

ISSN: 2707-7063, Volume 2, No.1 June 2021

Journal homepage: http://assap.wum.edu.pk/index.php/ojs

Review: Food Price Fluctuations and Its Influence on Global Food Market
Ifra Chaudhry1, Raheel Suleman2, Adrish Bhatti3, Inam Ullah4
1
Institute of Food Science & Nutrition, Bahauddin Zakariya University, Multan Pakistan
2
Department of Food Science and Nutrition, Times Institute Multan, Pakistan
3
Department of Business Administration, Times Institute Multan, Pakistan
4
Department of Food Science and Technology, University of Haripur, KPK Pakistan

ARTICLE DETAILS ABSTRACT

History: Food price fluctuation is a multifarious problem in
Received: February 22, 2021 food marketing. Food price fluctuations have a huge
Review: June 28,2021 effect on the vulnerable. Food security is considered at
Accepted: June 28,2021 three levels (household, national and international
Available Online: June 30, 2021 levels). Food supply, safety, physical and financial
accessibility, and food utilization are the four pillars
of food security. Since 2006-2007, the costs of most
Keywords: food products in Pakistan have risen by more than 100
Price fluctuation, Influence, Global
percent. Consumption patterns, income, market and
Market.
stockholding are the main causes of increased food
prices. Maternal and child nutrition is affected due to
price fluctuation at the individual level. Short term
and long-term police are important to improve food
productivity by enhancing the agricultural system. The
main focus of the study is to identify the effects of price
fluctuations on poor pregnant women's diet
specifically in Pakistan and then on the children. If a
mother is malnourished or micronutrient deficient then
the child will also be deficient in that specific nutrient
and deficiency will run in families. Hence our purpose
is to find out these deficiencies in Pakistan and better
implementation of policies.

© 2021 The Authors, Published by WUM. This is an Open Access

Article under the Creative Common Attribution Non Commercial 4.0
Corresponding author email address: drraheelsuleman@t.edu.pk

1. Introduction

Price fluctuation is a serious problem. When combining with other factors, it brings serious
consequences for the most vulnerable. Farmers think that high prices are in the favor but the
reality is the opposite. Inflation brings problems for the poor and middle class. The increase
in the price of goods also impacts the farmers and they suffer. On the other hand, capital
flows are risky because farmers as well as other food supply chain participants could lose
their assets if prices fall.

21
 Ifra Chaudhry, Raheel Suleman, Adrish Bhatti, Inam Ullah

‘Market fundamentals’ are said to be the most important reason for price fluctuation. When
Demand outruns the supply then it leads to an increase in prices. Other most eminent factors
that contribute to inflation are the loss of biodiversity, Climate change, aquifers and depleted
soils. Food production has increased to maximum in recent years as it was never as high as it
is today.
The sudden fluctuation in prices is not only damaging to consumers but also affects
producers. It has been seen that poor farmers don't have enough money to cope with these
changes. So, it results in compromised investments and it surely affects crop production.

Formers are facing severe problems due to increased prices in the developing countries and
these increased prices are the results of non-food factors which ultimately effects everything.
The price of essentials like transport, fuel, fertilizers, rent kerosene and agricultural related
products, has increased recently. So, the transporter and people related to the industry are
facing higher transportation costs and to lower their burden they transfer this cost to farmers.

1.1. Global Food Price Trends

Inflation or deflation in food prices has serious impacts on the poor. It is obvious that some
families benefit from higher prices and some are negatively affected due to over-pricing but it
depends on a different reason such as which one is the seller and who is the buyer. It also
depends on their income and rich households find it easy to adjust even in inflation. Some
Low-income households usually spend a large portion of their capital and income on food
items. It increases vulnerability to rising inflation. In many countries, Policymakers try to
contain the food prices for their people and they also respond to food price changes,
especially increase in prices by making effective policies to contain the prices in their
country. Foreign companies were able to do this by limiting exports. On the other hand,
lowering import barriers help importers.

350
300
250
200
Price

150
100
50
0
2012 2013 2014 2015 2016 2017
Years

Domestic International

Sources: Index Mundi, State Bank of Pakistan, Punjab Food Department

Figure 1: Wheat prices showed between domestic and international market over the years
from 2012-2017.

We have to consider two more factors here, as more time is given to the markets to adopt the
change. First, changes in food prices may change the factor go back. After the first, changes
Annals of Social Sciences and Perspective (ISSN: 2707-7063) Vol.2, No.1, 2021, 21-33

in yield patterns of poor households may also occur. The factor that go back is the factor that
shows the wage rate for untrained labor these households provide outside their farms. The
influence on labor costs is becoming more and more significant when the commodity is:

a) Extremely labor exhaustive.

b) The large share of yield, e.g. rice in Bangladesh.
c) Contains huge use of intermediary inputs.
140
120
Food Price Index

100
80
60
40
20
0
2012 2013 2014 2015 2016 2017
Years

Price index Linear (Price index)

Figure 2: Global food price index comparison with general price index from 2012 to 2017
(FAO,2018).

1.2. Global Food Price Index and Fluctuations

In November 2020, (FFPI) averaged 105.0 figures, 4.0 figures (3.9%) up from October and
6.4 figures (6.5%) greater than its value from the previous year. Since July 2012 the rise in
November was not only the largest mark on monthly rises, it also contributed to the graph
reach its maximum amount since December 2014. Most of the FFPI thread increased in
November, with the vegetable oil thread taking the lead, followed by the sugar, cereal, dairy,
and meat thread. The FAO Cereal inflation rate reached 114.4 figures in November, up 2.7
figures (2.5%) from October and growing to 19.0 figures (19.9%) more than its November
2019 value. The most recent improvement in the index's price was the fifth in a row. The
FAO price chart of vegetable oil recorded 121.9 figures in November, up 15.4 figures (or
14.5 percent) from the prior month and reaching its highest possible level since March 2014.
The spike is primarily due to ongoing rising prices in palm oil, as well as rises in the value of
soy, oilseed rape, and sunflower seed oil. The FAO value of the dairy market measured 105.3
points in November, up 0.9 points (0.9 percent) from the preceding period, continuing the
upward pattern shown in previous weeks and hitting an 18-month milestone. Higher dairy
and cheese prices drove the dramatic rise, which reflected persistent increases in the global
trade balance as well as an increase in consumer markets in the world, which coincided with
seasonal drops in milk production in the era. The FAO Livestock inflation rate averaged 91.9
points in November, up 0.8 points (0.9 percent) from the following month but still 14.6 points
(13.7 percent) points in November, up 2.8 points (3.3 percent) from October and indicating
the second successive below its value in the same month a year earlier year. The FAO Sugar
inflation rate reached an 87.5 monthly increase. Stronger new data confirming previous
forecasts of global production shortages in the 2020/21 trading season aided the rise in
international sugar quotations in November (FAO, 2020).

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 Ifra Chaudhry, Raheel Suleman, Adrish Bhatti, Inam Ullah

Table 1: Global Food Price Fluctuation from September 2020 to November 2020 (FAO, 2020)
FAO food Average points in Increased points from Average points in Average points in
price index November 2020 the previous month October 2020 September 2020
4.0
Overall Food 105.0 100.9 97.9
3.9%
2.7
Cereals 114.4 111.7 104.0
2.5%
Vegetable & 15.4
121.9 106.48 104.6
oil 14.5%
0.9
Dairy 105.3 104.4 102.2
0.9%
0.8
Meat 91.9 91.1 91.6
0.9%
2.8
Sugar 87.5 85.6 79.0
3.3%

125
Food Price Index

112
99
86 Sugar
Meat
73 Dairy
Veg & oil
60 Cereals
Sep
Oct Overall food
Nov

Months

Figure 3: FAO FOOD price index from September 2020 to November 2020 (FAO, 2020)

2. Food Security Link with Food Price Fluctuation

“Everyone has a physical and financial right to a plentiful, clean, and balanced meal to meet
their nutritional needs and dietary habits at all periods in order to live a productive and
balanced life.” believes the World Food Organization (Shaw, 2007)

Food security is very important because it ensures healthy life and maintains good nutritional
status. A man is considered food secure when he takes a healthy nutritious diet that in turn
increases his metabolism and stamina in daily chores and protects him against many diseases
and boosts his growth.

Food security is associated with food price fluctuations in a way that when it is not retained
or when food crisis results, then people in the market stockpile staple foods necessary for
them to make a living. This ensures good nutritional status and keeps food commodities'
prices in moderation. (Prosekov & Ivanovo, 2018)

Food security is generally considered at three levels, household level (Coleman-Jensen,

Gregory, & Singh, 2014), national and international level. At the national level, food security
Annals of Social Sciences and Perspective (ISSN: 2707-7063) Vol.2, No.1, 2021, 21-33

is affected by average per capita energy intake in accordance with the needs of one self. For
example, if a person’s need is 2000kcal per day and he is not fulfilling this intake from
various food groups, then he will in turn face malnutrition and is the ability to do work in a
better manner will decline. At the farm level, food security is seen in the form of good
harvesting time, increased fertility rate, by using fertilizers to protect the plants against
certain pathogens.

Food security has generally four pillars which are discussed below.

3. Food Availability

It indicates the availability of enough food as a result of cultivation, dissemination and

exchange. When adequate quality and quantity of food is produced from local agriculture in a
certain territory, then that food can meet the nutrient recommendations of its population
(Hertel, 2016). One can check food availability through the fertility rate of crops, staple food
production rate, and speed of harvesting.

Climate change badly affects food availability. (Brown & Funk, 2008) When weather is very
hot, then the temperature at which crops need to grow changes, so productivity is affected in
a sense that one receives the crop too late to transport it to market. Water used to hydrate the
crops is irrigated to maintain their moisture content. If weather shocks happen, then land
losses it's fertility and land destruction occur as a result.

All these circumstances lead to greater food price hikes. Because when the salesperson does
not receive the desired food product as a result of these conditions, they increase food prices
to make a living which is then alarming for the rural population. The need is to use fertilizers
and water that do not emit harmful nitrous oxide gases that in turn affect the soil fertility and
careful measures should be in practice for maintaining crops production (Schoeneberger,
2000). Food availability can be checked through certain food sheets and by surveying the
markets.

Nutritional status

Food Availability

Food Accessibility

Utilization
Figure 4: Food and Nutrition Security (Weingarten, 2009)

25
 Ifra Chaudhry, Raheel Suleman, Adrish Bhatti, Inam Ullah

3.1. Access to Food on a Physical and Financial Level

Another dimension involves income, expenditure, buying capacity of people of that certain
area (Rainer Gross, Hans Schoeneberger and Hans Joachim Preuss, 2000). A person with a
good income can access the healthy products in the market that fulfill his energy needs and
give him the incentive to work properly in daily life. Employment also matters in this
scenario. Consider a family who is living hand to mouth to provide food to all members, this
family will not be able to buy foods from the four basic food groups and in turn will face
hunger, malnutrition, their children will be stunted and underweight.

On the other hand, there is a family with more than average income and its access will be
more towards meat, dairy and other food commodities. Their children will be more active
able to cope with minor infections and shocks and their nutritional status will be adequate
(Leroy, Rule, Frongillo, Harris, & Ballard, 2015). Poor people whose jobs are street vending,
rickshaw drivers, and newspaper sellers, and farmers especially, when they face certain
climatic changes like heavy rainfall and temperature change, floods, drought, it becomes
more difficult for them to transport their products to the market that results in high food
prices. As a result, more people migrate towards cities and towns to make their living and
their competition for jobs increases (Mark J Cohen et al, 2010). In the case of weather socks,
like floods, famine, crops are destroyed and resultant is increased food prices.

To cope up with this problem, water dams and reservoirs should be made to hold back extra
water and to raise shallow groundwater up to a certain level. Transport also matters as people
who are far away from supermarkets have to pay more to buy from the supermarket and
people who live near retail markets benefit more as they have more access to the market and
have to spend less.

3.2. Food Utilization

Utilization involves how a person can make the best use of certain vitamins and minerals in
the diet (Barney, 1980). It covers intra household food preparation, sanitary facilities, etc.
When a person drinks safe water with safe hands, he is protected from many water-borne
diseases and when a similar person eats 3 ounces of meat, he can utilize recommended iron
and protein present In that meat. On the other side, a person who is not following hygiene and
drinks milk with dirty hands or is using unsafe, unpasteurized milk, will not be able to get
300mg of calcium because his utilization is compromised by certain microbes that got their
entry from his hands into that milk. Certain intestinal parasites that got entry from food ingest
the food and nutrients present in it and in turn that person remains deficient in such essential
nutrients. Diarrheal disease, goiter, food contaminated disorders and stunting all result from
unhygienic utilization of food products. The degree to which any individual can fulfill his or
her dietary preferences is vital for his or her wellbeing (Von Braun, 2013).

Food should be sufficiently prepared to achieve food safety; meat should be cooked
thoroughly and properly packaged and processed. Proper education about sanitation and
hygiene can improve the utilization of food and in turn, food prices will be maintained.

3.3. Stability (Climate Changes)

Climate change and inflationary pressures have different effects on different aspects of food
safety. Climate instability affects the food production stability factor by affecting livestock
and crop production. Climate variability also has an effect on relative production and input
Annals of Social Sciences and Perspective (ISSN: 2707-7063) Vol.2, No.1, 2021, 21-33

prices, which has an indirect impact on food security (Hertel, Burke, & Lobell, 2010;
Wheeler & Von Braun, 2013). Climate change and inflationary pressures have different
effects on different aspects of food security. Climate instability affects the food production
stability factor by affecting livestock and crop production. Climate variability also has an
effect on relative production and input prices, which has an indirect impact on food security
(Wossen, Berger, Haile, & Troost, 2018) The effect on food security of climate-induced
shifts in food prices is however not always negative. High agricultural product costs are
projected to result in a better supply response, with farmers obtaining more land and several
other inputs to the rural activities, as well as additional production to boost crop yields
(Farooq, 2014). However, a rise in price inflation, particularly in recent years, has been
linked to greater price volatility.

Climate change impacts food security stability as severe weather events reduce crop yields or
damage physical infrastructure, resulting in reduced food supply and driving food price
shocks, reducing food access (Wheeler and Braun, 2013). Bio-energy policies are also
thought to have contributed to food price instability as mitigation attempts to tackle climate
change (Wheeler and Braun, 2013)

4. Causes of Increased Food Prices

Agricultural commodity prices have also been volatile in recent years, putting both buyers
and producers on edge (Huka, Ruoja, & Mchopa, 2014). The United Nations' Food and
Agriculture Organization (FAO) estimates that the food inflation figures have fluctuated
dramatically throughout the last four years. According to the indicator, the value rose from
122 in 2006 to 214 in June 2008. This was attributed to factors such as transportation costs,
agricultural production, food inventory level as stock levels drop, increased prices, change in
the exchange rate of leading export countries in general, import tariffs, famine, low
innovation, and food production as minor supply shocks can trigger significant price changes.
The agricultural commodity markets have gradually undergone enormous price instability, as
per the Global Market Survey (2007), and production and consumption factors such as
population expansion and wind patterns are the main reasons for these shifts (Huka et al.,
2014).

Since 2007, extreme price volatility has become more common in agricultural trade flows,
causing severe supply issues in some cases, particularly in developing countries. The study
aimed to identify the multiple reasons for price instability in agricultural products on this
framework.

27
 Ifra Chaudhry, Raheel Suleman, Adrish Bhatti, Inam Ullah

Consu
mption
Season pattern
al
Income
product
ion

Causes of
Climate increased
conditi Market
ons food
prices

Poor
Stoke
infrastr
holding
ucture
Transpo
rtation

Figure 5: Diagram showing causes of food products price inflation (Timmer, 2008)

4.1. Consumption Pattern

Food prices are a key indicator of consumption habits, and rising food prices, particularly for
the poor, can have dire implications for nutritional factors and performance. The degree to
which allowed output and consumption shocks convert into market volatility is determined by
production and consumption elasticity, which reflects producers' and consumers'
susceptibility to price changes. Recent developments in the food trade show drastic changes
in food consumption trends, throughout the world. These developments are expected to grow
during the forecast period. Many of these changing consumer habits are influenced by a
number of variables, but economic growth is perhaps the most prominent. (Haq, Arshid, &
Anwar, 2009). Sales growth has led to increased consumer purchasing power across the
world. Over the years, prompting consumption to shift to more expensive ingredients (Seale
Jr, Regmi, & Bernstein, 2003)

Table 2: Distribution of expenditure shares for food sub-categories around Countries in

2017 (Poterba, 2017).
Food Groups Low wage family Middle wage family High wage family
Cereals 26.93 17.98 11.83
Veg & Fruits 20.37 18.24 14.62
Meat 19.65 22.48 25.92
Dairy 7.89 10.78 10.03
Beverages 9.25 14.22 25.92
Fats & Oil 5.90 4.36 2.78
Other Foods 10.0 11.94 11.41
Total food expenditure 52.58 34.69 16.97

Population increase and economic growth have been followed by a dietary transition (Popkin,
1994). Budget surplus allows for the buying of relatively high processed goods like dairy and
meat. Pakistan has made substantial progress by improving the levels of all major food items,
like grains, meat, milk, sugar, and eggs, per unit over time (Cohen & Garrett, 2010). As a
result, per capita, calorie consumption increased from 2078 in 1949-50 to 2450 in 2012-13.
Protein and fats patterns that are similar have been discovered In Pakistan, Haq et al (2008)
and Friedman, Hong, and Xiaohui (2011) reported compensating variance to estimate the
magnitude of welfare losses due to rising commodity prices. Since 2006-07, the rates of most
Annals of Social Sciences and Perspective (ISSN: 2707-7063) Vol.2, No.1, 2021, 21-33

food products in Pakistan have risen by far more than 100 percent (Malik, Nazli, & Whitney,
2015).

12
10
8
6
Percent increase%

4
2
0
Flour Meat Vegetable Rice Pulses Milk Fruits
Food Products

2017 2012

Figure 6: Per capita consumption of food in Pakistan 2012-2017 (Karim & Ibrahim, 2018)

4.2. Income

Climate change and increased food price volatility greatly impact household income and
employment impacts are highly negative for poor households and seem to be more at risk.
Due to the extreme unpredictability, dissection, and degradation of purchasing power, food
exchange rates are of greater importance and consideration than high energy prices. Food
market volatility has an indirect impact on personal domestics and their necessities.

Oil is a vital supply of fuel that is used in both industrial and agricultural development. The
oil market is a crucial procedure that affects their everyday suitable approach. In the second
half of 2013, there was an unanticipated price increase in global improves the financial. The
oil price fell to a new low of USD 28 per barrel, down from a high of USD 100 per barrel in
2012. Oil-producing countries that depend heavily on oil trade for financial development face
a serious threat to their growth rate and income distribution. Another benefit for oil-importing
countries is that it acts as a motivation or cost-cutting measure. However, a drop in oil-
exporting countries' revenues due to a sharp drop in oil prices results in low wages, low
financing, limited efficiency, and, as a consequence, high commodity prices, especially for
food items, which account for about 30% of family income in these regions. Increased food
instability in Ethiopia and Ghana resulted in a two-fold rise in the price of agricultural goods
such as cereals and sorghum, and a 150 percent change in the cost of maize, putting poor
households at risk, with 29.6% of the poverty rate. (Ding Chen1, Czech, 66, 2020)

Following data of OCT 2017 indicates daily per capita income average value and oil output
(Ding Chen1, Czech, 66, 2020)

Table 3: October 2017 data of average per capita income value and oil output.
Sr Region Country Reserve GDP PPP Oil Countries income
no (mb/d) (Billion (Thousand output status
USD) USD) (mb/d)*
1 Middle Iran 157530 14.00 11666 3.90 Low
east
2 Africa Gabon 2000 514 7453 0.21 Low
3 US Venezuela 299953 381 12846 2.30 High
4 Africa Nigeria 37070 263 2344 1.90 Low

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 Ifra Chaudhry, Raheel Suleman, Adrish Bhatti, Inam Ullah

5 Middle Saudi 266578 711 22939 10.4 High

east ARABIA

In a census of five African nations, Asia, and Latin America, urban nonworking, such as
wage stagnation, was found to be 10% or less; strong, but not alarmingly so. Street vendors,
rickshaw drivers, manual labor, and manufacturing are examples of civilian inadequate jobs
that are normal, fearful, terrible, and low-paying. That vulnerable people are dedicated to
their employees and cannot switch jobs nearly every day, and that their work is irreversible.
Surprisingly, climate change-induced high food instability has an effect on civilian wages in
the same way as it has on farm households. Many workers are unable to work due to the rain,
and getting goods from cities becomes challenging. Factories need fewer workers across
seasonal transition times, resulting in large variations that affect both rural and urban families,
with the poor becoming more likely to experience poverty (Garrett, 2010).

4.3. Market

Changes in global grain prices continue to be important, with correlations of variance of

about 20%–30% for wheat, rice, and white maize. Changes in global grain prices continue to
be important, with correlations of variance of about 20%–30% for wheat, rice, and white
maize. Although there is no evidence that price volatility has risen (prices were most volatile
in the 1970s), there is uncertainty that changes in global markets, especially commodity
depletion by leading economies (China, the United States, and the European Union) and rapid
commodity prices in Asia, could lead to higher and more volatile prices over time.
Agricultural exports for wheat and maize in importing countries have generally been higher
than global markets in household food markets, indicating retract costs in converting global
prices into domestic markets, as well as policy infringements that separate domestic markets
from world demand. The shakiness of household prices appears to be highest in Africa,
especially in landlocked countries. Because of an increase in transportation costs and weak
market facilities, the income gap between export and import finance is widening. Household
shocks are amplified by the high trade financing balance, which is coupled with high
domestic demand variability. (Derek Byerlee a, 2006)

In recent decades, the balance of import and export deposits in Ethiopia has enabled maize
prices in Addis Ababa to fluctuate between about US$ 50 and billion Dollars 250 per ton.
Rice export prices have fallen from a high of US$ 340 per ton in 1996 to a low of US$ 170
per ton in 2001, before rebounding to over US$ 300 per ton in 2005.

Policymakers should understand the reason food prices increase import parity and should
form plans and strategies to protect the urban and rural welfare with respect to shortfalls in
food production and food crisis for the promotion of political and social stability and certain
policy options should be adopted for avoiding food crisis in future. (Derek Byerlee a, 2006)

4.4. Stockholding

The accumulation of stock is the source of instability. When stocks are plentiful, small
generation or consumption shocks can have a large cost effect, but while they are scarce, the
reverse is true. Furthermore, once stock levels have gotten to be high, they will remain high
until utilization has improved output for a long enough period to retain the previous
overabundance. In the event when supply and demand stuns are autonomous over time,
stockholding consists of a patterned nature in costs and inconsistencies. By 2006, world grain
commodities had fallen to lower levels, which is also attributed to one of the causes of later
Annals of Social Sciences and Perspective (ISSN: 2707-7063) Vol.2, No.1, 2021, 21-33

high grain price volatility. Since stock changes take time, volatility levels may remain high
for a while longer. However, this does not imply that instabilities will always be higher.
Other factors can also play a role in opening up or worsening instability. So long as inventory
is accumulated through times of overabundance demand, stockholding can reduce volatility.
(Morgan, Has food price volatility risen? , 2010)

Other factors can also play a role in exacerbating or restricting instability. As stocks are
accumulated in times of excess supply and released in times of abundance demand,
stockholding can reduce volatility and extend Stockholding, on the other hand, is more
conservative in reducing the degree of value falls during abundant inventory stuns (abundant
harvests) than in reducing the level of cost rises during shortages, since destocking is
dependent on the availability of holdover products from the context. As a result, stockholding
reduces uncertainty and gives the price structure a more positive appearance. The assumption
may be a pivotal figure that influences volatility in either a superficial way. Physical
stockholding, buy-and-sell trades of product possibilities, and other subsidiary contracts are
all examples of theory. Nonetheless, some futures market commitments are theoretical - the
traditional administrative distillation figure, which can have a substantial impact on volatility.
- the traditional directorial distinction between endorsing, in which supply service providers
struggle to the mitigated chance presentation by prospects exchanges, and conjecture, in
which inspectors are “non-commercials,” i.e. they have no interest in the product service
exchange. Product potential merchandise appears to have a mechanism in which risk is
transferred from industrial to non-commercial merchants, i.e. from producers to examiners.
Examiners offer the compensation of import and export by embracing this cost risk, allowing
producers to find opposite groups in a relatively low-cost manner. (Morgan, 2010)

5. Impact of Price Fluctuation at the Individual Level:

An increase in food prices results in hungrier people. In 2006, the FAO estimated that 815
million people were and there is an increase of 75-135million people with increased
vulnerability and the risk of food insecurity is 1 billion people. In developing countries,
people are more vulnerable to hunger because of shocks in macroeconomics (Darnton, 2009).

Maternal and child nutrition is affected due to these changes and mainly due to an increase in
micronutrient deficiencies and reduction in dietary quality furthermore morbidity and
mortality of infectious diseases have also been increased. Underweight and wasting of the
child has also been increased because of reduction in the quantity of food. Undernutrition at 2
years of age can lead to long-term effects and hence a slight change in the price of foods can
lead to life-long disorders. Population groups most affected by increased price are lactating
women, pregnant women, children and chronically ill people including HIV/AIDS and
tuberculosis. (Henk-jan Brinkman, 2010).

6. Conclusion

The study concluded that there are four factors associated with price fluctuation including
food supply, economic and physical access to food, able to access food, and economic
stability. Moreover, some causes that directly show an impact on the global market are
consumption patterns, family income and market values. Prices of grains become high
because of seasonal fluctuations. Price fluctuation mostly affects poor people and most
vulnerable groups include pregnant women, children, people with diseases etc. several short
term and long-term policies are made to cope up with this problem that includes different

31
 Ifra Chaudhry, Raheel Suleman, Adrish Bhatti, Inam Ullah

programs globally. But these policies should be implemented in better ways to maintain food
prices stability and overall consumer

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