UNCTAD blames India, China for rising food prices
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United Nations Conference on Trade and Development on Wednesday said that rising food demand in emerging economies like India and China has led to a 54 per cent rise in prices in the past one year even as World Food Security Summit is hotly debating the issue vis-a-vis biofuels.
"As rising demand for food resulting from economic growth in such countries as China and India has combined with droughts and high energy prices, the basic cost of food has climbed 54 per cent in the past 12 months," UNCTAD's Secretary-General Supachai Panitchpakdi said at the summit.
Earlier in May US President George W Bush had also said that prosperity in countries like India triggers increased demand for better nutrition which in turn leads to higher food prices.
Referring to Food and Agriculture Organisations food price index, Supachai said official development assistance (ODA), transfers of knowledge and technology, and various government supports for the farming sector have dwindled as well.
"It is not very surprising that that many developing countries have not invested substantially in agriculture," Supachai said, adding, when the markets are awash with subsidised exports from the developed world.
Many former net exporters of food in Africa, Asia, and Latin America are now net importers as a result of the market distortions caused by the subsidies, he said.
Suggesting urgent steps to meet immediate shortages around the world, Supachai said, long-term steps will be needed to cure the underlying causes of the food crisis.
Developing countries are vulnerable to the current rise in food prices as a result of long-term agricultural decline in poor countries due to imports of subsidised food from the rich nations, he said.
He said that "Current high prices provide a good opportunity to phase out agricultural support and subsidies in the developed world through the Doha Round" of world trade negotiations.
Supachai said, the jump in food costs comes at the end of five years of impressive economic growth in the developing world.
"As long as globalisation fails to reduce hunger, no one can claim that it engenders development," he said.
"As rising demand for food resulting from economic growth in such countries as China and India has combined with droughts and high energy prices, the basic cost of food has climbed 54 per cent in the past 12 months," UNCTAD's Secretary-General Supachai Panitchpakdi said at the summit.
Earlier in May US President George W Bush had also said that prosperity in countries like India triggers increased demand for better nutrition which in turn leads to higher food prices.
Referring to Food and Agriculture Organisations food price index, Supachai said official development assistance (ODA), transfers of knowledge and technology, and various government supports for the farming sector have dwindled as well.
"It is not very surprising that that many developing countries have not invested substantially in agriculture," Supachai said, adding, when the markets are awash with subsidised exports from the developed world.
Many former net exporters of food in Africa, Asia, and Latin America are now net importers as a result of the market distortions caused by the subsidies, he said.
Suggesting urgent steps to meet immediate shortages around the world, Supachai said, long-term steps will be needed to cure the underlying causes of the food crisis.
Developing countries are vulnerable to the current rise in food prices as a result of long-term agricultural decline in poor countries due to imports of subsidised food from the rich nations, he said.
He said that "Current high prices provide a good opportunity to phase out agricultural support and subsidies in the developed world through the Doha Round" of world trade negotiations.
Supachai said, the jump in food costs comes at the end of five years of impressive economic growth in the developing world.
"As long as globalisation fails to reduce hunger, no one can claim that it engenders development," he said.
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