India blames US ethanol for foodgrain prices

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India blames US ethanol for foodgrain prices
Singapore March 26
By: Jaishree Balasubramanian
India today blamed the US policy of diverting food grains such as corn for producing bio-fuels for the spurt in food grain prices globally.
Finance Minister P Chidambaram also criticised lack of adequate regulations in the US sub-prime market, which has caused global financial uncertainties.
"It has been estimated that nearly 20 per cent of corn grown in the United States is diverted for producing bio-fuels. As citizens of one world, we ought to be concerned about the foolishness of growing food and converting it into fuel," Finance Minister P Chidambaram said here today.
He said the demand for staple food was on the rise, leading to higher prices, but diverting food for fuel had also contributed to increase in food prices.
Addressing a gathering of academics, scholars, diplomats and bureaucrats at the Lew Kuan Yew School of Public Policy in this island state, the minister said this process (diversion of food grains for bio-fuels) was "a sign of the lopsided priorities of certain countries".
Referring to the current global uncertainty and the sub-prime mortgage market crisis that triggered the turbulence, Chidambaram blamed it solely on poor regulations and lax supervision.
"If this had happened in developing countries, we would have been lectured on the virtues of bankruptcy. Since this is happening in developed countries, no one pauses to ask whether all the old arguments are not being made to stand on their head," Chidambaram said to applause from the audience.
Attributing rising global food grain prices to domestic inflation, he said that prices of maize, rice and wheat, all staple items of food, had either doubled or trebled between 2004 and 2008.
The Indian Finance Minister termed the rise in the price of crude oil as "greed" overtaking the common good of the world. The minister also noted that there is no case for raising food prices so high that many poor people could not buy food anymore. Wondering what had happened to the declaration of the Millennium Development Goals and the inspiring slogan "Make Poverty History, Chidambaram said, "If we are serious about ending poverty, the place to start is to make food and fuel available at reasonable prices at which people can consume adequate quantities of food and at which fuel becomes not a constraint but a driver of growth." The world must heed the voice of developing countries. In the development of these countries lies the key to putting an end to poverty and making the world a better and safer place for all of humanity, he said.
The relentless increase in commodity and food prices had put enormous burden on the developing economies such as India. He said prices of commodities like oil, urea, metals and minerals had all shot up over the past three years.
"India imports significant quantities of urea. The price of urea was USD175 per metric ton in 2004. By April 2007, it had increased to USD288 per MT and in January 2008, it was quoted at USD370 per MT," he added.
Noting that there were clear signs of a slowdown in the world economy and signs of rising inflation in many countries of the world, Chidambaram said "global slow down, rising inflation and subdued interest in investment make for a combination that can have only negative consequences for developing countries." He said New Delhi had taken steps to stimulate domestic demand in the Indian economy and added that the measures in the recent budget should "encourage both domestic and foreign investors to continue to have faith in the India growth story."
Referring to India's high growth rate, Finance Minister P Chidambaram said the country's experience over the last three decades had been one of sustained growth, with each decade being an improvement over the previous one.
He said India's average growth rate of 7.6 per cent a year since 2001-02 till till 2007-08 was a unique experience as it was based on the principles of democracy and rule of law.
"The agenda is one of sustained growth in a market economy that takes care of its poor and disadvantaged. While markets ensure efficiency, a democratic governing system ensures that the reform process has ahuman face," he told the gathering.
Chidambaram said India had not hesitated to use fiscal and public policy instruments to contain inflation and to ensure that the growth process created jobs.
"The two factors that cause misery to the poor are inflation and loss of jobs. These two factors are highly correlated to the structural adjustment process. When inflation rises or when there are large-scale job losses, the people begin to question the justification and advantages of reforms," he noted.
Chidambaram referred to the "bold step" taken by the Indian government called Fiscal Responsibility and Budget Management Act (FRBM Act), which he said was a wise and courageous decision in retrospect.
He also referred to the fiscal policy steps by the government to contain inflation and to stimulate job-creating growth and mentioned the decrease in customs duties, Excise duty and service tax.
Giving examples of areas where fiscal policy had been used to advance the objectives of price stability and growth, Chidambaram referred to slash in excise duty on small cars with a view to make India a hub for small cars.
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Beaner,
I guess this is a perfect example of how when it comes to global policies it is a "do as I say not as I do" mentality. While the Finance Minister Mr. Chidambaram is railing against the evils of the US turning a feed grain into motor fuel. The largest newpaper in his country, The Hindu (www.hindu.com) has reported that: "The Indian government has announced it will increase the ethanol mandate from five percent to ten percent." Doubling the required amount of ethanol usage while at the same time spouting off about the US policies in this regard sure don't help the esteemed Finance Ministers' credibility out much does it.......
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It is amazing to me how the"have nots" of the world (india) thinks we are world citizens and have the audacity to lay claim to our grain products for the world good.
Give me a break!!! Farmers in India is commting suicide because of heavy debt loads, and the government does nothing to help them through hard times, most farms there are no larger than 3 acres, they are using stone age technology, and the government is attempting to get farmers to join their land together in 25 acre plots, to become more effecient and productive and 'together" purchase a tractor and other implements.
I think Alzado would be in his environment over there it is a food plot society, no government support, and if you were to walk the streets of Calcutta one would see what that philosophy has brought upon the population of that country.
It is amazing to me how so many foreign countries think they could run American agriculture better than we can. They had better emerge from the stone age first.
Have a great day. John
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Jump in rice price fuels fears of unrest
By Javier Blas in London and Daniel Ten Kate in Bangkok
Financial Times, London
Published: March 27 2008 18:30 | Last updated: March 27 2008 18:30
Rice prices jumped 30 per cent to an all-time high on Thursday, raising fears of fresh outbreaks of social unrest across Asia where the grain is a staple food for more than 2.5bn people.
The increase came after Egypt, a leading exporter, imposed a formal ban on selling rice abroad to keep local prices down, and the Philippines announced plans for a major purchase of the grain in the international market to boost supplies. Global rice stocks are at their lowest since 1976.
While prices of wheat, corn and other agricultural commodities have surged since late 2006, the increase in rice prices only started in January.
The Egyptian export ban formalises a previously poorly enforced curb and follows similar restrictions imposed by Vietnam and India, the world?s second- and third-largest exporters. Cambodia, a small seller, also on Thursday announced an export ban.
These foreign sales restrictions have removed about a third of the rice traded in the international market.
?I have no idea how importing countries will get rice,? said Chookiat Ophaswongse, president of the Thai Rice Exporters Association. He forecast that prices would rise further.
The Philippines, the world?s largest buyer of the grain, said on Thursday it wanted to purchase 500,000 tonnes after it failed to buy a similar amount earlier this month. It is struggling to import 1.8m-2.1m tonnes to cover a production shortfall and on Thursday confirmed it would tap emergency stocks maintained by Vietnam and Thailand.
Rice is also a staple in Africa, particularly for small countries such as Cameroon, Burkina Faso and Senegal that have already suffered social unrest because of high food prices.
Thai rice, a global benchmark, was quoted on Thursday at $760 a tonne, up about 30 per cent from the previous daily quote of about $580 a tonne, according to Reuters data. Some traders, however, said the daily jump was not as steep, adding that Thai rice had already traded at about $700 a tonne this week.
Rice prices have doubled since January, when the grain traded at about $380 a tonne, boosted by strong Asian, Middle Eastern and African demand
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quote:
Originally posted by Beaner

Jump in rice price fuels fears of unrest
By Javier Blas in London and Daniel Ten Kate in Bangkok
Financial Times, London
Published: March 27 2008 18:30 | Last updated: March 27 2008 18:30
Rice prices jumped 30 per cent to an all-time high on Thursday, raising fears of fresh outbreaks of social unrest across Asia where the grain is a staple food for more than 2.5bn people.
The increase came after Egypt, a leading exporter, imposed a formal ban on selling rice abroad to keep local prices down, and the Philippines announced plans for a major purchase of the grain in the international market to boost supplies. Global rice stocks are at their lowest since 1976.
While prices of wheat, corn and other agricultural commodities have surged since late 2006, the increase in rice prices only started in January.
The Egyptian export ban formalises a previously poorly enforced curb and follows similar restrictions imposed by Vietnam and India, the world?s second- and third-largest exporters. Cambodia, a small seller, also on Thursday announced an export ban.
These foreign sales restrictions have removed about a third of the rice traded in the international market.
?I have no idea how importing countries will get rice,? said Chookiat Ophaswongse, president of the Thai Rice Exporters Association. He forecast that prices would rise further.
The Philippines, the world?s largest buyer of the grain, said on Thursday it wanted to purchase 500,000 tonnes after it failed to buy a similar amount earlier this month. It is struggling to import 1.8m-2.1m tonnes to cover a production shortfall and on Thursday confirmed it would tap emergency stocks maintained by Vietnam and Thailand.
Rice is also a staple in Africa, particularly for small countries such as Cameroon, Burkina Faso and Senegal that have already suffered social unrest because of high food prices.
Thai rice, a global benchmark, was quoted on Thursday at $760 a tonne, up about 30 per cent from the previous daily quote of about $580 a tonne, according to Reuters data. Some traders, however, said the daily jump was not as steep, adding that Thai rice had already traded at about $700 a tonne this week.
Rice prices have doubled since January, when the grain traded at about $380 a tonne, boosted by strong Asian, Middle Eastern and African demand

This can't be good can it,Beaner?
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So I assume the rise of world rice price is also blamed on US ethanol production. I wonder what percent of the world's rice acres have been converted to corn acres because of US ethanol production.
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r3020- What is really frightening is 2 Billion pissed off hungry asians. Things are getting interesting here.
"Markets can remain irrational longer than you can remain solvent" John Maynard Keynes
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R3020, I am sure that the rest of the world will try to blame the U.S. for the rise in rice prices. They would have a hard time proving it though. If you look at the March 11, 2008 World Agricultural Supply and Demand Estimates, you can see we grow very little of the world's rice. In 2006/07, the world rice production was 418.23 million metric tons. The total for the U.S. production was only 6.24 million metric tons. If I did my math right, we only grow 1.5% of the world's rice. The world ending stock was 74.76 million metric tons. Our 6.24 million metric tons of production is less than 10% of the world's ending stock. It is really amazing how we get blamed by the world for every problem when the facts clearly show that other nations are more at fault than we are. I am to the point now that I really don't care about other nations. Their corrupt governments do not care about their own people. They will fight civil wars while starving their own people. The U.S. has done more to feed and protect these nations than they do for themselves. And they show their gratitude by blaming us for their problems.
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quote:
Originally posted by Faust100F

It is amazing to me how the"have nots" of the world (india) thinks we are world citizens and have the audacity to lay claim to our grain products for the world good.
Give me a break!!! Farmers in India is commting suicide because of heavy debt loads, and the government does nothing to help them through hard times, most farms there are no larger than 3 acres, they are using stone age technology, and the government is attempting to get farmers to join their land together in 25 acre plots, to become more effecient and productive and 'together" purchase a tractor and other implements.
I think Alzado would be in his environment over there it is a food plot society, no government support, and if you were to walk the streets of Calcutta one would see what that philosophy has brought upon the population of that country.
It is amazing to me how so many foreign countries think they could run American agriculture better than we can. They had better emerge from the stone age first.
Have a great day. John


India, the land of dots and free cows roaming the country side. What a dump, yet we great Americans have them do our bidding for us as we sit on our a$$e$. I can't understand the *******s when they call me at home and start yammering in my ear. I actually told one of the sob's to learn English and he hung up on me. Praise the rat's that run in the streets. We are such dumb*****s to allow this crap to go on. I saw their foolish ways when I was in college, letting the grain rot on their docks, yet our Algebra turbined dork professor was more interested in showing off his office and collection of books, than worry about the starving people in his country. He also smelled real bad. They are showoffs and nothing more. I have a friend in the manufacturing business who no longer does business with India because they are undependable and their work is shabby at best yet we Americans seek out their services.......makes me want to puke. The affluent Indians could care less about their countrymen. WTF is wrong with this country? Have you ever spent the night in one of their motels. Crap, enough said. I hope I didn't offend any of you Indian lovers and I'm not talking about American Indians either.
I think it won't be long before these foreign countries dictate what we do John, ***** they're off and running now, let's go thru the list.............IRAN, IRAQ, SYRIA, SAUDIA ARABIA, INDIA, PAKISTAN, TURKEY, CHINA, VENEZUELA, AFGHANISTAN, LEBANON, MEXICO, NORTH KOREA, USSR, AFRICA, AND MY FAVORITE COUNTRY FRANCE. I'm sure I left some out, Cuba maybe, but who cares right? The bottom line...Don't give any grain to India, because the havenots will not get any of it and the haves will sell it back to us or anybody else for more $$$$$$$$$$$$$$$$$$$$$. Worthless bunch of people, but that's my opinion. Good Luck America you're gonna need it.
You can blame Monsanto for the deaths of those Indian Farmers. Another worthless bunch.
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These two (2) posts are from US origination/author

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Other Columns by Linda Chavez
Linda Chavez Bio

A Government Engineered Food Crisis
By Linda Chavez
March 28, 2008
As if a housing crisis, rising energy costs and a soft labor market weren't enough to cause economic anxiety for the average American, now consumers are feeling the pinch of rapidly escalating food costs. The United States has long prided itself in being the breadbasket of the world, and Americans have traditionally paid a smaller share of their income on food than citizens of other developed countries. But the days of cheap milk, bread, beef and poultry may well be over -- and Uncle Sam is partly to blame.
In 2007, the cost of a gallon of milk increased 26 percent; eggs went up 40 percent; and a loaf of white bread went from $1.05 to $1.28 from 2006 to 2008. Steep increases in the price of oil have contributed to these higher costs, but the federal government has played a pernicious role as well. By mandating that oil companies increase the amount of ethanol they blend with gasoline, the government has not only artificially increased the cost of corn, which is what most U.S. ethanol is made of, but has driven up the cost of other grains as well. Inflated corn prices encourage farmers to divert more acreage to corn, which means they plant less soy and wheat, which, in turn, drives the prices of those commodities up as well. The aggregate price of wheat, corn, soy oil and soy meal in the U.S. will be $61.7 billion higher in the 2007/2008 crop year than it was in 2005/2006.
Corn prices affect a host of other food prices as well. If you've ever looked at the ingredient labels on everything from bologna to canned tomato soup, you'll see that corn syrup is a common ingredient of many processed foods. Corn is also a common grain used in feed for cattle, poultry and hogs. As a result, prices for meat and poultry are going up, but even with higher prices, some companies in the meat industry still can't make a profit, and many are being forced to cut jobs and close plants. I've seen this firsthand as a member of the board of directors of Pilgrim's Pride, the nation's largest chicken producer, where we have already had to shut down one plant and close six distribution centers to cope with record losses directly attributable to soaring feed costs.
But what is most galling about the impact of government mandated ethanol production is that it does little or nothing to solve our energy problems. Ethanol proponents argue that it is cleaner than petroleum -- which improves air quality -- and that it and other alternative fuels will reduce U.S. dependence on foreign oil. Both claims are dubious.
Corn-based ethanol is inefficient as a fuel for automobiles, reducing vehicle gas mileage by 20-30 percent in vehicles using E85, the highest ethanol content fuel. Fewer miles-per-gallon of gas essentially eliminates any savings achieved, even by mixing ethanol with gasoline in the lower 9 percent ethanol blends required in all U.S. gasoline today. And of course, it also takes energy to produce ethanol -- for farming and distilling the corn and transporting the final product to the pump -- and much of that energy will come from carbon-based fuels.
>> Continued -- Page 1 2
, I do NOT agree with the writer, but like beaner, this is some of the CRAP getting spread, NOT one thing about anyone attempting to use a % less fuel(crude oil base) product in what ever the enterprise--
Now for ag 2
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pg-2
Page 2 of 2
None of these arguments has stopped the aggressive ethanol lobby from getting its way with Congress, however, and pressure increases in presidential election years as Iowa farmers encourage candidates to pledge allegiance to ethanol during the Iowa caucuses.
If ethanol really were the miracle fuel its proponents claim, you'd think there would be huge profits in producing it in the free market. But that's not the case. Consumers not only pay for ethanol at the pump, they're paying taxes as well to subsidize ethanol production in the U.S. -- and they're paying a hidden tax to keep cheaper, foreign sugar cane ethanol from competing with the domestic corn-based product. Subsidies to gasoline blenders amount to about 51 cents per gallon, and the government imposes a 54-cent tariff on foreign ethanol so that it can't provide a cheaper alternative for U.S. consumers.
And matters will only get worse as government mandates higher bio-fuel content in U.S. gasoline from the current 9 percent to 15 percent by 2015. Ethanol won't solve the energy crisis, but it may well lead to a food crisis in the U.S. and elsewhere. The U.S. Agency for International Development reports that the cost of providing wheat, corn, cereal and other foodstuffs to poor nations has gone up 41 percent since October 2007, which will mean we can provide less assistance to starving people around the world. Federal policy is literally diverting food from the table to the gas tank -- and it's time we stopped it.
---
Linda Chavez is the author of "An Unlikely Conservative: The Transformation of an Ex-Liberal."
COPYRIGHT 2008 CREATORS SYNDICATE, INC.
--------------------
Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA.
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And the propaganda just keeps rolling off the press. Yup the Commercial banking thugs will walk aways will millions in their pockets while the media blames Martha Ethanol and burns Joe Farmer at the stake. What is that sizzling, popping and snapping noise?
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***** just wait in 6 weeks the sub prime will have been caused by Martha Ethanol.
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So why is the price of meat going up. I am sure its not because of the farmer. Farmers are taking it in the shorts of the meats. I think it is funny that everyone has been taking the US plains states for granted forever. I don't really hear of AMERICANS running out of food. I think the countries of the world that can produce food will be the best ones for the next 10-15 years. But yet I see the price of cereal has more than doubled. I also heard on CNBC or some station that General Mills has 75% of there commodities they use hedged.... Also 1st quarter profits year over year were up 61%. Now i don't think it takes a genuis to figure out where the price rise is going... Why doesn't the press put the blame where it really is and not put it on the scapegoat farmers. Heaven forbid we try to feed the mouths that put us down... The media is doing a good job of biting off the hand that feeds there big mouths. It would be nice if the media collected more actual facts before publishing crap like that... I am not a lawyer by any means, but isn't there a thing such as defimition of charactor?? Is that not what the media is doing to the farmers reputation. Putting down the farmer!!! i suppose there has to be some finacial loss or something associated with the statements. It would be hard to proce i suppose. but maybe not, take a look at when the price of commodities broke back down compared to when these media bases put there crap out there.. i think the American farmers might actually have a case. Anyone know more???
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FEATURE-Tensions rise as world faces short rations
By Russell Blinch and Brian Love
WASHINGTON/PARIS, March 31 (Reuters) - Food prices are
soaring, a wealthier Asia is demanding better food and farmers
can't keep up. In short, the world faces a food crisis and in
some places it is already boiling over.
Around the globe, people are protesting and governments are
responding with often counterproductive controls on prices and
exports -- a new politics of scarcity in which ensuring food
supplies is becoming a major challenge for the 21st century.
Plundered by severe weather in producing countries and by a
boom in demand from fast-developing nations, the world's wheat
stocks are at 30-year lows. Grain prices have been on the rise
for five years, ending decades of cheap food.
Drought, a declining dollar, a shift of investment money
into commodities and use of farm land to grow fuel have all
contributed to food woes. But population growth and the growing
wealth of China and other emerging countries are likely to be
more enduring factors.
World population is set to hit 9 billion by 2050, and most
of the extra 2.5 billion people will live in the developing
world. It is in these countries that the population is
demanding dairy and meat, which require more land to produce.
"This is an additional setback for the world economy, at a
time when we are already going through major turbulence. But
the biggest drama is the impact of higher food prices on the
poor," Angel Gurria, head of the Organization for Economic
Cooperation and Development, or OECD, told Reuters.
In Gurria's native Mexico, tens of thousands took to the
streets last year over the cost of tortillas, a national staple
whose price rocketed in tandem with the price of corn (maize).
Global food prices, based on United Nations records, rose
35 percent in the year to the end of January, markedly
accelerating an upturn that began, gently at first, in 2002.
Since then, prices have risen 65 percent.
In 2007 alone, according to the U.N. Food and Agriculture
Organization's world food index, dairy prices rose nearly 80
percent and grain 42 percent.
"The recent rise in global food commodity prices is more
than just a short-term blip," British think tank Chatham House
said in January. "Society will have to decide the value to be
placed on food and how ... market forces can be reconciled with
domestic policy objectives."
Many countries are already facing these choices.
After long opposition, Mexico's government is considering
lifting a ban on genetically modified crops, to allow its
farmers to compete with the United States, where high-yield,
genetically modified corn is the norm.
The European Union and parts of Africa have similar bans
that could also be reconsidered.
A number of governments, including Egypt, Argentina,
Kazakhstan, and China, have imposed restrictions to limit grain
exports and keep more of their food at home.
This knee-jerk response to food emergencies can result in
farmers producing less food and threatens to undermine years of
effort to open up international trade.
"If one country after the other adopts a
'starve-your-neighbor' policy, then eventually you trade
smaller shares of total world production of agricultural
products, and that in turn makes the prices more volatile,"
said Joachim von Braun, director general of the International
Food Policy Research Institute in Washington.
In Argentina, a government tax on grain led to a strike by
farmers that disrupted grain exports.
Vietnam and India, both major rice exporters, announced
further curbs on overseas sales on Friday, sending rice higher
on U.S. futures markets. Other food commodities retreated from
record highs in recent days but analysts attributed that less
to fundamentals and more to profit-taking by investors.
DISCONTENT
In the next decade, the price of corn could rise 27
percent, oilseeds such as soybeans by 23 percent and rice 9
percent, according to tentative forecasts in February by the
OECD and the U.N.
Waves of discontent are already starting to be felt.
Violent protests hit Cameroon and Burkina Faso in February.
Protesters rallied in Indonesia recently and media reported
deaths by starvation. In the Philippines, fast-food chains were
urged to cut rice portions to counter a surge in prices.
Last year, the central bank of Australia -- where minds
were focused by a two-year drought -- asked whether the surge
in commodity prices could be one of the few really big ones in
world history, like those of the mid-1930s or the 1970s.
Real commodity prices remained flat or even fell during the
rapid industrialization of the United States and Germany in the
early 20th century. But the industrialization of China, with
1.3 billion people, is on a totally different scale, it noted.
"China's population is proportionately much larger than the
countries that industrialized in earlier periods and is almost
double that of the current G7 nations combined," the Australian
central bank said.
The emergence of China's middle class is adding hugely to
demand for not just basic commodities like corn, soybeans and
wheat, but also for meat, milk and other high-protein foods.
The Chinese, whose rise began in earnest in 2001, ate just
20 kilograms (44 pounds) of meat per capita in 1985. They now
eat 50 kilograms (110 pounds) a year.
Each pound of beef takes about seven pounds of grain to
produce, which means land that could be used to grow food for
humans is being diverted to growing animal feed.
BIOFUEL TROUBLE
As the West seeks to tackle the risk of global warming, a
drive towards greener fuels is compounding the world's food
problems.
It is estimated that one in four bushels of corn from this
year's U.S. corn crop will be diverted to make fuel ethanol.
"Turning food into fuel for cars is a major mistake on many
fronts." said Janet Larsen, director of research at the Earth
Policy Institute, an environmental group based in Washington.
"One, we're already seeing higher food prices in the
American supermarket. Two, perhaps more serious from a global
perspective, we're seeing higher food prices in developing
countries where it's escalated as far as people rioting in the
streets."
Similarly, palm oil is at record prices because of demand
to use it for biofuel, causing pain for low income families in
Indonesia and Malaysia, where it is a staple.
But despite the rising criticism of biofuels, the U.S.
corn-fed ethanol industry enjoys wide political support because
it boosts farmers, who suffered years of low prices, and that
support is likely to continue. John Bruton, the European Union's Ambassador to the United
States, predicts that the world faces 10 to 15 years of steep
rises in food costs. And it is the poor in Africa and,
increasingly, South East Asia, who will be most vulnerable.
The director of the U.N. World Food Program, Josette
Sheeran, is on a global tour in search of donations to fill a
$500 million funding gap caused by the rising prices. America's
largest aid program, Food for Peace, has seen its commodity
prices jump 40 percent and may have to curtail donations.
But aid and many policy options available to governments
for helping the hungry distort markets and cause pain elsewhere
in their economies, according to proponents of free markets.
"I was involved in a government that introduced food
subsidies in Ireland and we had the devil's own job to get rid
of them," said Bruton, who was Prime Minister of Ireland from
1994 to 1997.
Others trust that better fertilizers and higher-yielding
crops -- some of them genetically modified -- will keep
production in line with demand.
Bruce Bab****, an economist at Iowa State University, said
the rising markets are a signal to farmers that they need to
raise production.
"It's actually the greatest time in the world to be a
farmer around the world," Bab**** said. "We are going to see
fairly substantial increases in production because farmers have
never had such a large incentive to increase production."
But others note that expensive seeds and fertilizers are
out of reach of farmers in poor countries.
Around the beginning of the 19th Century, British political
economist Thomas Malthus said population had the potential to
grow much faster than food supply, a prediction that efficient
farming consistently proved wrong. Now, at the beginning of the
21st century, some are revisiting his predictions.
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From the article above- MY REPLY IN CAPS
In Gurria's native Mexico, tens of thousands took to the
streets last year over the cost of tortillas, a national staple
whose price rocketed in tandem with the price of corn (maize).
WELLLLLLLLLLL NOT ACTUALLY IN TANDEM. THESE JOURNALISTS NEED TO BRUSH UP ON GRADE SCHOOL MATH. WHEN CORN IN THE US WENT UP 4 PENNIES PER POUND, TORTILLAS IN MEXICO WENT UP 64 TO 128 PENNIES PER POUND ACCORDING TO THE WASHINGTON POST. OF COURSE IN TYPICAL FASHION THE POST AND THE NON THINKIN THINK TANK ? THE HERITAGE FOUNDATION- SUGGESTED THAT THE ENTIRE RISE IN TORTILLAS IN MEXICO WAS PRIMARILY DUE TO US ETHANOL. ANYONE THAT KNOWS ANYTHING ABOUT THE CORN MARKET WOULD HAVE TO ADMIT THAT THE RISE IN CORN PRICES HAPPENED FOR VERY MANY REASONS.
Each pound of beef takes about seven pounds of grain to
produce, which means land that could be used to grow food for
humans is being diverted to growing animal feed.
IF IT IS TRUE THAT 7 POUNDS OF CORN IS USED IN CURRENT RATIONS TO GET 1 POUND OF BEEF, THE PRICE INCREASE IN CORN CAUSES LESS THAN AN ADDED 42 PENNIES PER POUND TO PRODUCE THE BEEF. (7 POUNDS OF CORN X INCREASE IN PRICE OF CORN OF LESS THAN 6 PENNIES PER POUND).
Around the beginning of the 19th Century, British political
economist Thomas Malthus said population had the potential to
grow much faster than food supply, a prediction that efficient
farming consistently proved wrong. Now, at the beginning of the
21st century, some are revisiting his predictions.
IF YOU WANT TO INCREASE FOOD SUPPLIES TO REDUCE THE RISK OF PRICE SHOCKS, FOOD PRODUCERS AS WELL AS AG INPUT SUPPLIERS WILL HAVE TO PROFIT. RURAL AREAS ALL OVER THE WORLD ARE CREATING GOOD JOBS AS WE DISCUSS THIS DUE TO THE FACT THAT THERE IS SUDDENLY AN INCENTIVE TO PRODUCE MORE. HIGHER RURAL INCOMES THROUGHOUT THE WORLD WILL BE THE BEST CHANCE WE HAVE TO REDUCE RURAL POVERTY AND HUNGER.
JABBER1
There is no free lunch.
Milton Friedman (1912 - 2006)
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