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Solution to food crisis lies in revealing real truth

(Xinhua)
Updated: 2008-07-11 10:17

BEIJING -- The unrelenting rise in food prices has become a matter of grave concern for many countries.

A recent report in British newspaper The Guardian revealed a secret World Bank report which says that from 2002 to February this year, food prices have risen by 140 percent, 75 percent of which was "contributed" by biofuels, thanks to vigorous promotion by the United States and European Union (EU).

In contrast, increase in energy and fertilizer prices pushed up food prices by only 15 percent.

A man walks past bags of repacked rice for sale at subsidised prices inside a National Food Authority warehouse in Quezon city, metro Manila July 10, 2008. [Agencies]

The World Bank's conclusion sharply contradicts some nations' claims that higher demand from newly emerged markets such as India and China has led to higher food prices.

However, as different sides argue about the causes of the global food price hike, the World Bank report offers evidence on the true causes behind the international price surge.

The severe impact of high food prices is being felt around the world, with some developing countries facing food shortages, hunger among the poor, increased poverty and social unrest.

Uncovering the truth behind the food crisis is a step toward finding feasible solutions at an early date.

Children eat rice in their classroom for breakfast as part of the United Nations World Food Program at Bopha tipe elementary school in Somrong Tong district,Kampong Speu province, about 60km west of Phnom Penh, June 17, 2008. [Agencies]

The World Bank report studied the food price movement in recent years, analyzing the connection between the food price surge and biofuels on a monthly basis.

It came to the conclusion that the EU and United States' drive for biofuels has had by far the biggest impact on food supply and prices.

On the other hand, the rapid income growth in developing countries had not led to large increases in global grain consumption and was not a major factor responsible for the large price increase, the report said.

It is only logical that the results of a study by an institution such as the World Bank should be recognized by all parties concerned and fully employed to seek ways to resolve the food price crisis.

However, government officials, media and experts from some countries are bent on denying the huge impact of biofuels on world food price, rather preferring to insist on exaggerating the effects of increased food consumption by some so-called newly emerged markets.

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