Hoarding and government price controls both affect food prices—but in very different ways.
Hoarding happens when traders or farmers intentionally hold back maize or beans from the market, hoping prices will rise. They create an artificial shortage. Even if there’s enough food, the public feels a pinch because less is available for sale. The goal of hoarding is profit: sell later at a higher price. This drives prices up, especially during a drought or harvest delay.
Government price controls, on the other hand, are when the government sets a maximum price (a price ceiling) for maize or beans to keep food affordable. This sounds good—but if the controlled price is too low, farmers and traders may stop selling because they can’t cover their costs. That can also lead to shortages, not because food is being hidden, but because it’s not worth selling.
In short:
- Hoarding = private actors restricting supply to raise prices.
- Price controls = government lowering prices to help consumers, but possibly discouraging supply.
Both can cause empty shelves. One is driven by profit, the other by policy.
