Food security under trying circumstances
Wednesday, 31 October 2007
THE continuing food inflation, fuelled largely by supply-side constraints, both domestic and international, has hit the vast number of the country's population very hard. Spiralling prices have dented their incomes that have hardly risen under the prevailing depressed state of the flood-damaged economy. In this situation, food security issues merit the priority attention of the government and all others concerned over the situation. This is now no unique situation for Bangladesh alone, because food prices have, of late, become, what Jacques Diouf, Director-General of the United Nation's Food and Agriculture Organisation (FAO), noted the other day, "even more serious problem" in most developing countries as a sequel to the phenomenal rise in food prices in the international market.
As the food prices in the global market have continued to swell, the FAO at its forthcoming annual meeting in Rome will moot a proposal for holding a high-level conference on world food security. The FAO director-general has stated that efforts will be made at the meeting for an agreement on measures to cool down rising food prices. Most developing economies, particularly the low income ones, are hard pressed to meet the challenge. Access to food is critical for the success of efforts of most developing countries particularlarly the low income ones, to alleviate poverty. Global food security now being in a fragile state, time is up for concerted international actions to prevent spiralling prices from aggravating further the problems of hunger and poverty in poor countries of the world. All concerned do need to appreciate the seriousness of the situation. Food price inflation in developing countries, according to International Monetary Fund (IMF) estimates, has risen in the past year to a rate of about 11 per cent while non-food inflation runs at a rate of about 7.0 per cent. And prices are still on a rise.
In this backdrop, the growing concern over global food security has heightened the need for revamping food management policies and operations in many developing countries including the low income ones. This has to be done, on an urgent basis, to ensure access to food on the part of those who are in most disadvantaged positions under the prevailing market-driven conditions where wholesale increase of prices is being passed on to consumers. The FAO director-general has indicated that rising food prices are most likely to force developing countries to impose retail price controls to avoid social unrest. Indeed, surging agricultural prices are now becoming a big international political issue. Several developing countries have witnessed social unrest over food prices that have increased in some cases to record highs in the international market on strong demand from developing countries, frequent floods and droughts caused by climate change, a rising global population, the bio-fuel industry's appetite for grain and the like.
Meanwhile, low-income food-importing countries, according to the latest estimates of the FAO, will require to spend about $28.1 billion between July 2007 and June 2008 for importing staples such as rice, wheat and corn, representing a 15 per cent rise from the year before and double costs in 2002. With FAO's food price index now rising to its highest level since it began in 1990, the organisation's director-general sees possibilities of food riots taking place in countries of the world in the event of prices continuing to surge further. The situation is, thus, critical, particularly for the low income countries. Unless the international community joins hands together to help address the multi-dimensional problems arising out of food inflation, it will be well-nigh impossible to mitigate sufferings of the most disadvantaged population in such countries under the given circumstances. Hence, the need for international cooperation at this stage is vitally important for addressing the concerns over food security in a volatile price situation.
As the food prices in the global market have continued to swell, the FAO at its forthcoming annual meeting in Rome will moot a proposal for holding a high-level conference on world food security. The FAO director-general has stated that efforts will be made at the meeting for an agreement on measures to cool down rising food prices. Most developing economies, particularly the low income ones, are hard pressed to meet the challenge. Access to food is critical for the success of efforts of most developing countries particularlarly the low income ones, to alleviate poverty. Global food security now being in a fragile state, time is up for concerted international actions to prevent spiralling prices from aggravating further the problems of hunger and poverty in poor countries of the world. All concerned do need to appreciate the seriousness of the situation. Food price inflation in developing countries, according to International Monetary Fund (IMF) estimates, has risen in the past year to a rate of about 11 per cent while non-food inflation runs at a rate of about 7.0 per cent. And prices are still on a rise.
In this backdrop, the growing concern over global food security has heightened the need for revamping food management policies and operations in many developing countries including the low income ones. This has to be done, on an urgent basis, to ensure access to food on the part of those who are in most disadvantaged positions under the prevailing market-driven conditions where wholesale increase of prices is being passed on to consumers. The FAO director-general has indicated that rising food prices are most likely to force developing countries to impose retail price controls to avoid social unrest. Indeed, surging agricultural prices are now becoming a big international political issue. Several developing countries have witnessed social unrest over food prices that have increased in some cases to record highs in the international market on strong demand from developing countries, frequent floods and droughts caused by climate change, a rising global population, the bio-fuel industry's appetite for grain and the like.
Meanwhile, low-income food-importing countries, according to the latest estimates of the FAO, will require to spend about $28.1 billion between July 2007 and June 2008 for importing staples such as rice, wheat and corn, representing a 15 per cent rise from the year before and double costs in 2002. With FAO's food price index now rising to its highest level since it began in 1990, the organisation's director-general sees possibilities of food riots taking place in countries of the world in the event of prices continuing to surge further. The situation is, thus, critical, particularly for the low income countries. Unless the international community joins hands together to help address the multi-dimensional problems arising out of food inflation, it will be well-nigh impossible to mitigate sufferings of the most disadvantaged population in such countries under the given circumstances. Hence, the need for international cooperation at this stage is vitally important for addressing the concerns over food security in a volatile price situation.