Caught between rising commodity prices and the effects of Covid-19
As the world slowly comes back to life after a major battle against a pandemic that has claimed millions of lives, we are once again faced with a global challenge to resolve. The increase in the cost of raw materials is becoming so pronounced that we cannot look away.
We have to be careful, otherwise we could end up deep in another pit of poverty. Even before raw material prices started to rise, the costs of these items were already very high. Items like laundry soap, salt and sugar were not easy to afford. Most of our businesses have struggled to recover as many of us have abandoned them and to resolve the effects of Covid-19.
The whole world has faced the wrath of this pandemic for at least two years. Until today, many of us are still struggling to recover the livelihoods we lost during the coronavirus disease. In doing so, we find that we have to deal with the rising cost of every commodity, which globally has increased dramatically. From the usual groceries to building materials, things have gone high.
We now have to dig deep into our pockets and spend a lot more on raw materials. With this expensive trend set to continue, at some point our ability to pay for some things could be compromised unless someone comes up with a magic moment – a quick fix. We look to the powers that be to find that much-needed magic moment to bring us back to the business benchmark we were at in 2020.
To bring us to the levels of prosperity to which we aspire. Whatever the reason for the global rise in commodity prices, we believe the genesis is that many countries are now limiting their exports of certain essential commodities. We also believe that many more countries have stopped exporting their locally produced goods.
That due to the scarcity inside, they have to dampen their internal consumers. If it is true that countries are limiting their exports, then countries that depend on these exports are now forced to consider other alternatives. At the same time, supply is becoming scarce and prices will continue to rise. This is a lesson for countries that are mainly importers of these products.
They need to find a good solution so that they don’t face similar difficulties in the future, especially for foodstuffs. It came at a time when many countries were not experiencing such difficulties. If countries continue to restrict exports, the difficulties will persist. Supply will be scarce and increased demand will cause prices to rise continuously.
This is our concern, and the least developed countries will feel the impact of rising commodity prices. As they mainly depend on imported raw materials, they spend more. This is why this aspect of the economy requires special attention. It is necessary to maintain a constant supply of basic products and stable prices for the well-being of consumers.
By controlling raw material prices, ongoing projects will continue uninterrupted. This allows people to focus on other aspects of their lives. Countries should pay attention to the impact of banning exports of certain products. They should not be left behind. Avoid excessive dependence on imports. The poorest have to produce enough for themselves so as not to fall into the desperate zone.
We cannot leave anyone behind if commodity prices continue to rise. At present, countries are caught between rising commodity prices and recovering from the effects of Covid-19. We need to get out of this quickly. This is a lesson for us.