UN: Rising food price hits relief efforts

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UN: Rising food price hits relief efforts

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The food prices have seen dramatic increase in the last 15 months. The wheat prices have nearly doubled while the overall food price have gone up by 75% since year 2000 according to the World Bank. As reported by this AFP news story on 19-March, the head of International Rice Research Institute (IRRI) warns that the rice prices are hovering at record levels too with possible far reaching consequences.

UN’s World Food Program warns that their ongoing and planned relief efforts are being hit by increased food prices. Also new needs for relief efforts are created by the record high food prices. Low income families of the poor nations surviving on a US$1 or less per day spend up to 80% of their income on food. While the developed nation’s families spend only about 10 to 15% of their income on the food giving much more room to cope with the price increase. UN appeals for increased donations to sustain their World Food Program while countries like Egypt are forced to distribute subsided bread to the poor. UN World Food Program covers over 50 countries ranging from Palestine, North Korea, Sudan to Sri Lanka. Over half a million internally displaced population of Sri Lanka, predominantly Tamils in the war ravaged North and East of Sri Lanka depend on various international and local relief efforts.

The record high food prices are attributed to increased imported consumption from highly populated emerging economies such as China and India, new bio-fuel opportunities and record high energy prices.  Financial Time coverage on the emerging crisis: why are food prices rising?

For years farmers in developing countries have struggled to get fair price for their hard work. Suicide has been almost a norm among Indian farmers who were overwhelmed by debt. Many in countries like China and India abandoned farming for better paid factory jobs. With increased demand for food and bio-fuel, will agriculture become once again profitable for the debt ridden farmers of the developing nations to the subsidized farmers of the developed world?