Food prices were so low that smuggling the subsidized products into Tunisia and Morocco became big business.
Poor nations' farmers find they cannot compete with subsidized products, even within their own countries.
Because of shortages there are ration coupons to get such subsidized products.
The farmers would still receive the same level of payments, but the change would ease the gluts in certain subsidized products that are driving down global commodity prices.
Consumers may also find other uses for the subsidized product rather than utilize it for the company's intended purpose, which adversely affects revenue streams.
Are you experiencing difficulties exporting because of subsidized local products?
Israeli shoppers, anticipating the cutbacks, had already cleared shelves of many subsidized products, but there was confusion today as to what the new price structure might mean.
That drives down prices and leaves farmers in poor nations unable to compete with subsidized products, even within their own countries.
Poor nations' farmers cannot compete with subsidized products.
A subsidized product sold in the world market lowers the price of the good in other countries.