The food
prices across the globe hit a record high in 2007, and show
all the signs that they will go on rising this year too as
well as in the future. In fact, experts say that the era of
cheap food is over and the world economy has to get used to
it. The reason behind the spurt in food prices is certainly
not bad harvest, but turning too many food grains into fuel.
Moreover, the increasing demand for biomass energy is also
diverting agricultural production away from food crops, leading
to mass starvation in poor countries.
The skyrocketing oil
prices are driving the demand for biofuels. The increasing
demand for biofuels indicate that the price of a basic staple
food such as corn is no longer based on its requirement as
a food, but also as a fuel. Lester Brown explains: "Everything
we eat can be converted into ethanol or biodiesel. As a result,
the line between the food economy and energy economy has become
blurred." On the other hand, the decreasing stockpiles
of cereal and dairy products across the globe are making markets
nervous and prices volatile.
Against this backdrop,
Joachim von Braun, Director General, International Food Policy
Research Institute (IFPRI), Washington, warns, "The world
food system is in trouble. The situation has not been this
much of a concern for 15 years." The Food and Agriculture
Organization (FAO) has already issued a warning about the
dangers of turning too much food into fuel. After reading
and realizing the danger signals, the world's most populous
nation, China, moved a step ahead and imposed a ban on the
construction of new refineries that use corn or other staple
foods. |
