Food-deficit countries hit by high oil prices

NEW DELHI: Many low-income food deficit countries around the world have to shoulder a heavy financial burden in order to meet the cost of food imports amid tightened supplies and oil price increases, according to Jacques Diouf, Director-General of the UN Food and Agriculture Organisation (FAO).

For most cereals, supplies were much tighter than in recent years and demand was rising while stocks were expected to remain low, Diouf said.



Speaking at the inauguration of an FAO sub-regional office for Eastern Africa, he said the situation has also fuelled domestic food price inflation in many part s of the world.