Food prices ‘to remain high in next four years’

Global food prices are to remain high until 2012 given high demand amid fast-growing population and rapid biofuel development, the Agriculture Ministry has warned.

Achmad Suryana, head of the ministry’s Food Security Agency, said Wednesday evening, population growth and increasing biofuel projects would push up the global stock-to-consumption ratio for many crops.
At present, the stock-to-consumption ratio for paddy stands at 32 percent, for wheat 37 percent, 17 percent for corn, according to Achmad, citing ministry data.

“The ratio for corn has declined from 20 percent last year.”

According to Achmad, global paddy, wheat and corn prices had soared by 200 percent, 47 percent and 29 percent, respectively, from May last year until May this year.

Food prices had since declined but are yet to reach the levels recorded in May last year, he said, adding that “the declining trend will likely be short term.”

Jakarta Post