ABSTRACT
Generally, the demand for food is relatively stable but the supply of food can fluctuate greatly. Thus sometimes, markets become very volatile and fail to deliver outcomes that are efficient and equitable to a society. How to tame market volatilities and to balance food demand and supply has been a huge challenge for many national governments. This chapter explains how various policy tools have been used at the national level to influence food demand and supply. The impact of these policies on food price and quantity traded, the extent to which economic surplus is transferred between consumers and producers, and the welfare gains or losses to the nation as a whole are examined. This chapter also touches on the role of non-governmental organisations in helping balance food demand and supply.
