Former World Bank Chief Calls on China to Reduce Food and Fertiliser Reserves Amid Global Supply Disruptions

David Malpass told the BBC that China should stop hoarding food and fertiliser to ease a global supply crisis caused by the Iran war. The former World Bank president said China has the biggest world stockpile of foodstuffs and of fertiliser and can stop building their stockpiles. His comments came as nations around the world are scrambling to secure fertiliser supplies ahead of spring planting.

The closure of the Strait of Hormuz is severely disrupting fertiliser shipments. Svein Tore Holsether, chief executive of Yara, warned that the interruption to fertiliser supplies could cost up to 10 billion meals a week globally. Holsether said reduced crop yields could lead to a bidding war for food.

China has halted exports of several types of fertiliser since March, citing the need to protect domestic supplies. The country has put in place restrictions on fertiliser exports that have been steadily implemented since 2021. 6 billion).

Malpass, who ran the World Bank from 2019 to 2023, served as Treasury Under Secretary for International Affairs under President Donald Trump from 2017 to 2019. He was speaking ahead of the meeting between Presidents Trump and Xi in Beijing. The interview was conducted for the World Service's World Business Report, with additional reporting provided by Peter Hoskins in Singapore.

David Malpass said Beijing's claim to be a developing nation was no longer credible. "They present themselves as a developing country when they're the second biggest economy in the world and in many ways rich," he said. " Liu Pengyu, spokesperson for the Chinese embassy in Washington DC, told the BBC in an emailed statement that China is committed to maintaining the stability of global food and fertilizer markets.

Liu said the root causes behind the current disruptions in global food and fertilizer supply chains are crystal clear and this blame cannot be shifted onto China. In response to the developing-nation comments, Liu said China is universally recognized as the largest developing country and that upholding its status as a developing country is a legitimate right of China.

President Trump on Monday described the Iran ceasefire as being on massive life support.

David Malpass said the world should unite behind the US and demand a resolution to the Iran issue. "You can't have a rogue state with plutonium, and you can't block the Strait of Hormuz," he said. Malpass said he was hopeful that China would help find a resolution to the deadlock in the Strait of Hormuz.

He said China benefits from open waterways worldwide because they run the shipping lines, own the containers, and make huge profit from trade. Malpass said China would be a big loser if Iran in some way had control of the Strait of Hormuz. On the economic outlook for ordinary Americans ahead of Tuesday's US inflation data for April, Malpass said prices were heading higher.

"I expect some up, yes, prices will go up on many products," he said. Malpass said robust jobs data showed the US economy was resilient.