FAO alerts on food price rise
Italy: The UN Food and Agriculture Organization (FAO) warned about
food price rises, similar to those in 2007 and 2008, due to the increase
of raw material prices.In a medium term, food prices could remain
steady, but a report by the mentioned institution said the prices of
wheat, rice, oleaginous plants, and refined and unrefined sugar will
exceed those prior to 2006 until 2018.
According to the FAO, basic food prices rose in 2006 and reached
record levels in 2008, causing social disturbances and a significant
increase of the hungry in the world. FAO also warned that the world food
market will probably remain volatile in a near future. He reiterated
that re-appearance of price rises was possible, due to factors that keep
the demand vulnerable to any abrupt movement, as deficit of crops,
speculation or a rise in oil prices. The FAO said that while the general
increase of the demand is slow, the need for products that are sensitive
to income will increase at faster pace.
Insufficient investment in productive capacity and greater increase
in the demand for biofuels will also be influential, as well as
instability of the US dollar and oil, and restrictions to exports in
times of high prices.
Rome, Prensa Latina
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