Agricultural and Rural Development Notes

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https://hdl.handle.net/10986/9390
This series on commodity risk management aims to disseminate the results of World Bank research that describes the feasibility of developing countries’ ability to utilize market-based tools to mitigate risks associated with commodity price volatility and weather.

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Topic: Finance and Financial Sector Development × Topic: Urban Development × Sub-Saharan Africa: Africa safety nets ×

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    Managing Drought Risk for Food Security in Africa : An Innovative Solution in Malawi
    (World Bank, Washington, DC, 2009-01) Syroka, Joanna; Bunte, Kara
    Malawi periodically experiences drought leading to shortages of grain on the domestic market and a sharp increase in consumer prices. Consumers, including many of the poorest farmers in the country, experience difficulty obtaining enough grain to meet their family requirements. One method to reduce the risks of grain shortfalls is to improve the capacity of farmers to produce enough grain even when drought occurs, for example, through input subsidies and efforts to improve water use efficiency. An additional measure is to finance the establishment and distribution of strategic grain stocks. However, in the occasional year when drought is most extreme, supplementary assistance will still be needed in the form of expensive food imports and, possibly, food aid.