The other global crisis: rush to biofuels is driving up price of food

The world’s most powerful finance ministers and central bankers are meeting in Washington tomorrow; but as they preoccupy themselves with the global credit crunch, another crisis, far more grave, is facing the world’s poorest people.

A dramatic rise in the worldwide cost of food is provoking riots throughout the Third World where millions more of the world’s most vulnerable people are facing starvation as food shortages grow and cereal prices soar. It threatens to become the biggest crisis of the 21st century
Rising prices have triggered a food crisis in 36 countries, says the UN Food and Agriculture Organisation. The hike in prices means the World Food Programme is cutting food handout rations to some 73 million people in 78 countries. The threat of malnutrition on a massive scale is looming.

The impact is beginning to be felt in the rich world, too. More expensive wheat has caused large rises in the cost of pasta and bread in Italy where consumer groups staged a one-day strike that brought pasta consumption down 5 per cent. The price of miso, a fermented rice and barley mixture, is up in Japan. France and Australia have launched national inquiries into rising food prices and are pressing food producers and supermarkets to absorb price rises. In Britain, the price of bread is rising in line with the cost of wheat.

Independent