In the latest edition of Food Price Watch, World Bank
warned countries about the sharp increase in food prices and possible
political instabilities in future. The recent sharp rise of four per
cent in the global food prices put an end to a downward trend sustained
since August 2012.
The report analysed the trends of food prices in global trade during the quarter ended March 2014. It has urged the world governments to initiate adequate monitoring to control food prices and promote policies to mitigate adverse effects of inflation.
The report listed increasing weather concerns and import demands as the reasons for this trend. These increases have taken place despite bumper crops in 2013, and continued projections of record grain harvests and stronger stocks expected for 2014.
World Bank mentioned the political unrest in India due to increase in food prices. Driven by the rising demand in China, drought in the United States and unrest in Ukraine, global price of food items found new heights after 2012.
The Food and Agriculture Organisation (FAO) also reported that its monthly food price index in March rose by 2.3 per cent from February to the highest level since May 2013.
“Weather concerns, political uncertainties, and currency fluctuations do not exist in a vacuum—as evidenced by this quarter’s global food price increase,” said Ana Revenga, acting vice-president, Poverty Reduction and Economic Management Network, World Bank Group.
“Over the next few months, we must watch these prices carefully, making sure that any further increases do not put additional pressure on the least well-off around the world,” he stated.
The report said, “Dozens of violent episodes erupted across the world during the food price hikes of 2007 and 2008, and others have followed. Casualties associated with such episodes, popularly known as ‘food riots’ in Argentina, Cameroon, Haiti and India, to cite a few, made world headlines.”
“Food price shocks can both spark and exacerbate conflict and political instability, and it is vital to promote policies that work to mitigate these effects. Adequate monitoring is the first step in that direction,” it added.
The report analysed the trends of food prices in global trade during the quarter ended March 2014. It has urged the world governments to initiate adequate monitoring to control food prices and promote policies to mitigate adverse effects of inflation.
The report listed increasing weather concerns and import demands as the reasons for this trend. These increases have taken place despite bumper crops in 2013, and continued projections of record grain harvests and stronger stocks expected for 2014.
World Bank mentioned the political unrest in India due to increase in food prices. Driven by the rising demand in China, drought in the United States and unrest in Ukraine, global price of food items found new heights after 2012.
The Food and Agriculture Organisation (FAO) also reported that its monthly food price index in March rose by 2.3 per cent from February to the highest level since May 2013.
“Weather concerns, political uncertainties, and currency fluctuations do not exist in a vacuum—as evidenced by this quarter’s global food price increase,” said Ana Revenga, acting vice-president, Poverty Reduction and Economic Management Network, World Bank Group.
“Over the next few months, we must watch these prices carefully, making sure that any further increases do not put additional pressure on the least well-off around the world,” he stated.
The report said, “Dozens of violent episodes erupted across the world during the food price hikes of 2007 and 2008, and others have followed. Casualties associated with such episodes, popularly known as ‘food riots’ in Argentina, Cameroon, Haiti and India, to cite a few, made world headlines.”
“Food price shocks can both spark and exacerbate conflict and political instability, and it is vital to promote policies that work to mitigate these effects. Adequate monitoring is the first step in that direction,” it added.
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