IT IS turning out to be a disaster of a year for global food security. More than 800 million people around the world are waking up hungry every day. Some 20 million are on the verge of starvation in the horn of Africa and 30 million depend on emergency food aid in the Sahel. The cost of food has jumped following the Russian invasion of Ukraine. Food prices on average are 34 per cent higher than this time last year.

The United Nations blames the confluence of climate change, pandemic, and geopolitical conflict for the crisis. Making the bad problem worse is the commodities market. Investors that have nothing to do with the production or distribution of food grains, cereals or pulses are making speculative bets on the futures market driven only by a desire to make profits.

An investigation conducted by a multinational team of reporters shows that in the last two years investment funds have increased their stakes in agricultural commodities. In the global Paris milling wheat market, their share of wheat futures has increased three-fold since 2018. Hedge funds now dominate the trade in staples. This is worrisome.