Why do food insecure nations export food which they then import from other countries? : Commodities


For example Indonesia relies heavily on wheat imports, yet when you look at the trade of wheat in Indonesia they export $142M while importing $2B

Why wouldn’t the government just buy the wheat from the Indonesian farmers directly since the wheat must be cheaper with no trans-oceanic shipping cost. Also there would be a decreased dependance on foreign wheat.

What the rationale for this? What’s the strategy behind this behaviour?



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