The Current Outcome of Food Prices Regulation

The direct regulation of prices for vegetable oil, sugar, and bread has helped to stop their growth, however it has not resulted in halting food inflation as a whole. Restrictive measures on wheat exports have led to world prices growth but when put into effect they can reduce prices for the consumers on the domestic market. The proposed mechanism for revenue shortfall compensation for agricultural producers will reimburse direct losses from the imposition of export duties but not losses incurred from price reduction on the domestic market