Using Public Grain Stocks for Food Security

As a reaction to higher and more volatile food prices, many developing countries accelerated accumulation and distribution of public grain stocks and many intend to establish new reserves. While the public stocks can indeed help smooth out local prices, induce growth and support the poor in a case of emergencies, they can also become a burden if improperly designed and managed. In the past, food stocks in many countries failed to achieve stated objectives and continue to place large costs on taxpayers and the economy. This report reviews the lessons learned from evidence from a wide number of cases around the developing world, mistakes made, and successes achieved, and recommend main principles for successful management of stocks to enhance food security.