In 2009, about 280,000 people (5 percent of the total population) are food insecure, with most parts of the country being classified as overall food secure (FEWSNET 2009). Regions facing food shortages include Arusha, Dodoma, Kagera, Kigoma, Kilimanjaro, Lindi, Mara, parts of Mbeya, Morogoro, Mtwara, Shinyanga, and Tanga (Arusha Times, 2009). However, failure of rainfall in the bimodal northern, northeastern, and northern coastal areas, and continuous increases in maize, rice, and bean prices to 40-60 percent above their five year averages has resulted in food shortages (FEWSNET 2009). The country is also a hunger hotspot with a global hunger index of 24.17 or Alarming in 2008 (a compilation of population undernourishment, child malnutrition, and child mortality).

Simulation analysis has further shown that the high global commodity prices since 2006 has led to a welfare reduction of 2.3 percent for the rural poor and 3.2 percent for the urban poor. But in the long run, commodity inflation will lead to positive welfare changes for all households. However, the improvement in welfare of rural poor is 40 percent lower than the improved welfare of rural non poor indicating their inability to take advantage of opportunities on export markets and low integration with markets (Dessus 2008).

As a response to the crisis, the government has banned the export of maize and removed duties on cereal imports. Furthermore, more than a thousand tons of maize has been distributed at subsidized prices to approximately 400, 000 people identified as vulnerable. In order to boost agricultural production, the government has also introduced fertilizer subsidies (WFP 2009).