Top economies seek to reach a deal to boost food security

PanARMENIAN.Net - The world's top economies seek Thursday, June 23, to reach a deal to boost food security by limiting market speculation seen as behind recent price spikes that have hit consumers' pocketbooks and sparked unrest, AFP reports.

The Group of 20 top nations pledged to contain agricultural commodity volatility in the wake of the 2007-2008 surge in food prices, widely blamed on speculation, that triggered riots in some countries.

Countries such as the United States, Britain, Australia and Brazil however are concerned that such limits could crimp futures and derivatives markets, which are increasingly vital to farmers and processors.

Paucity of information on agricultural production and stocks is widely seen as fuelling speculation but countries such as China and India are still reluctant to share information they view as important to national security, diplomats said.

Biofuels are another contentious issue, with poverty relief groups disappointed that the draft G20 document does not acknowledge that the use of food crops to produce fuels is helping push up prices and causing hunger.

It was also unclear what if any pledges G20 nations will make on not slapping temporary export barriers on agricultural commodities.

Without major policy changes food prices will likely be high and volatile for the next decade, driven by rising incomes in emerging nations and demand for biofuel, the Organization for Economic Cooperation and Development and UN Food and Agricultural Organization warned last week.

Long-term price increases of up to 20 percent for cereals and 30 percent for meat can be expected over the decade while agricultural production will have to increase 70 percent by the middle of this century to meet expected population growth and avoid widespread hunger.