G8 takes first step against food price speculation

ITALY: The Group of Eight rich nations took a first step Monday towards fighting speculators who have helped push up the cost of basic foods, sparking riots in several poor countries.

The G8 agriculture ministers called for a study into setting up a global system to stockpile essential foodstuffs after three days of talks in northeastern Italy joined by key emerging and developing countries.

“We call upon the relevant international institutions to examine whether a system of stockholding could be effective in dealing with humanitarian emergencies or as a means to limit price volatility,” the ministers said in a final declaration.

“It’s an important first step,” said the head of the UN food agency, Jacques Diouf. “Now we hope that ... we can broach structural problems and come (to negotiations) with concrete solutions,” notably at the G8 summit in Sardinia in July, he told a news conference.

While recession has cooled soaring prices, a fraction of food agency summit in Rome last June has been disbursed.

Cison Di Valmarino, Tuesday, AFP