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FAO alerts on food price rise

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FAO alerts on food price rise

Post  TP Princess on Wed Oct 14, 2009 4:49 pm

Italy: The UN Food and Agriculture Organization (FAO) warned about food price rises, similar to those in 2007 and 2008, due to the increase of raw material prices.In a medium term, food prices could remain steady, but a report by the mentioned institution said the prices of wheat, rice, oleaginous plants, and refined and unrefined sugar will exceed those prior to 2006 until 2018.

According to the FAO, basic food prices rose in 2006 and reached record levels in 2008, causing social disturbances and a significant increase of the hungry in the world. FAO also warned that the world food market will probably remain volatile in a near future. He reiterated that re-appearance of price rises was possible, due to factors that keep the demand vulnerable to any abrupt movement, as deficit of crops, speculation or a rise in oil prices. The FAO said that while the general increase of the demand is slow, the need for products that are sensitive to income will increase at faster pace.

Insufficient investment in productive capacity and greater increase in the demand for biofuels will also be influential, as well as instability of the US dollar and oil, and restrictions to exports in times of high prices.


Ref - 14th October 2009 Daily NEWS

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