SUSTAINING NATIONAL STRATEGIC FOOD RESERVES UNDER INFLATIONARY PRESSURES FINANCIAL MECHANISMS, GOVERNANCE, AND OPERATIONAL ARCHITECTURE

Annotatsiya

State food reserves are a foundational element of national security, providing critical insulation against climate shocks, geopolitical disruptions, and economic volatility. However, under high-inflation environments, traditional fixed-budget funding models fail, as rising commodity and operational costs erode the purchasing power of state agencies. This article evaluates the comprehensive system of managing, storing, utilizing, and renewing state food reserves during economic crises. It analyzes the transition from static allocations to dynamic fiscal frameworks, including revolving equalization funds, commodity-backed financing, and market hedging strategies via futures and forward contracts. Furthermore, the paper examines how Public-Private Partnerships (PPPs) reduce government capital expenditure while maintaining reserve integrity. By integrating counter-cyclical Open Market Operations (OMO) with disciplined First-In, First-Out (FIFO) physical rotation schedules, nations can maintain required reserve volumes without triggering fiscal insolvency or market distortions.