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29.08.2012 |

Rising Food Prices: G20 to Wait and See

Rising grain prices
Rising grain prices: G20 in no hurry (Photo: YoYoH/flickr)

In the light of soaring food prices, the G20 countries have decided not to take joint action until the United States Department of Agriculture (USDA) release its new crop report in September. In a video conference call on Monday, agriculture officials from France, the US and Mexico, which currently holds the G20 presidency, discussed current price increases with representatives from various UN agencies, including the Food and Agriculture Organisation (FAO). Droughts in the US and poor crops harvests in the former Soviet Union have caused new fears about an imminent food crisis. According to a statement released yesterday by the French agricultural ministry, the G20 said that “the current market situation is worrying” but thanks to stable rice prices “no threat is hanging over world food security.” The aim of the conference call was to decide whether a meeting of the 'Rapid Response Forum' should be convened: a forum within the framework of the Agricultural Market Information System created by the G20 in 2011 as a response to abnormal market conditions. A decision on this has now been postponed until September 12. On Monday, FAO Director-General Jose Graziano Da Silva called on the G20 to take immediate steps to tackle the high food prices. “We need coordinated action and I believe that the G20 is responsible enough for this action”, he said. Da Silva urged the states to avoid unilateral export bans, such as trade restrictions after Russia’s 2010 drought.

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