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Food Crisis Raging Across the Globe

by Gopalan on Apr 19 2008 12:04 PM

Food crisis is raging across the globe. Not just the poor, but even middle classes are beginning to feel the pinch. This could prove destabilizing for many governments.

In Cairo, the military is being put to work baking bread as rising food prices threaten to become the spark that ignites wider anger at a repressive government. In Burkina Faso and other parts of sub-Saharan Africa, food riots are breaking out as never before. In reasonably prosperous Malaysia, the ruling coalition was nearly ousted by voters who cited food and fuel price increases as their main concerns.

“It’s the worst crisis of its kind in more than 30 years,” said Jeffrey D. Sachs, the economist and special adviser to the United Nations secretary general, Ban Ki-moon. “It’s a big deal and it’s obviously threatening a lot of governments. There are a number of governments on the ropes, and I think there’s more political fallout to come.”

Experts say there are few quick fixes to a crisis tied to so many factors, from strong demand for food from emerging economies like China’s to rising oil prices to the diversion of food resources to make biofuels, reports the New York Times.

A British expert was quoted by the Daily Mail as saying, "We are feeling the strain of food and petrol prices rising at their fastest rate since records began.

"It's crunch time for UK households as we face a downturn in the economy, below inflation pay rises and the reality of having less money in our pockets.

"We are working harder, but are certainly not getting any wealthier.

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"We have less spending money than at any time over the last ten years, yet bills are rocketing."

There are no scripts on how to handle the crisis, either. In Asia, governments are putting in place measures to limit hoarding of rice after some shoppers panicked at price increases and bought up everything they could.

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Even in Thailand, which produces 10 million more tons of rice than it consumes and is the world’s largest rice exporter, supermarkets have placed signs limiting the amount of rice shoppers are allowed to purchase.

But there is also plenty of nervousness and confusion about how best to proceed and just how bad the impact may ultimately be, particularly as already strapped governments struggle to keep up their food subsidies.

“This is a perfect storm,” President Elías Antonio Saca of El Salvador said Wednesday at the World Economic Forum on Latin America in Cancún, Mexico. “How long can we withstand the situation? We have to feed our people, and commodities are becoming scarce. This scandalous storm might become a hurricane that could upset not only our economies but also the stability of our countries.”

In Indonesia, fearing protests, the government recently revised its 2008 budget, increasing the amount it will spend on food subsidies by about $280 million.

“The biggest concern is food riots,” said H.S. Dillon, a former adviser to Indonesia’s Ministry of Agriculture. Referring to small but widespread protests touched off by a rise in soybean prices in January, he said, “It has happened in the past and can happen again.”

Last month in Senegal, one of Africa’s oldest and most stable democracies, police in riot gear beat and used tear gas against people protesting high food prices and later raided a television station that broadcast images of the event. Many Senegalese have expressed anger at President Abdoulaye Wade for spending lavishly on roads and five-star hotels for an Islamic summit meeting last month while many people are unable to afford rice or fish.

“Why are these riots happening?” asked Arif Husain, senior food security analyst at the World Food Program, which has issued urgent appeals for donations. “The human instinct is to survive, and people are going to do no matter what to survive. And if you’re hungry you get angry quicker.”

Leaders who ignore the rage do so at their own risk. President René Préval of Haiti appeared to taunt the populace as the chorus of complaints about la vie chère — the expensive life — grew.

He said if Haitians could afford cellphones, which many do carry, they should be able to feed their families. “If there is a protest against the rising prices,” he said, “come get me at the palace and I will demonstrate with you.”

And when they came, in their thousands, he huddled inside his palace, and it was the United Nations peacekeeping troops that baled him out. He has survived the riots, but is shuddering still.

The rising prices are altering menus, and not for the better. In India, people are scrimping on milk for their children. Daily bowls of dal are getting thinner, as a bag of lentils is stretched across a few more meals.

Maninder Chand, an auto-rickshaw driver in New Delhi, said his family had given up eating meat altogether for the last several weeks.

Another rickshaw driver, Ravinder Kumar Gupta, said his wife had stopped seasoning their daily lentils, their chief source of protein, with the usual onion and spices because the price of cooking oil was now out of reach. These days, they eat bowls of watery, tasteless dal, seasoned only with salt.

In Haiti, where three-quarters of the population earns less than $2 a day and one in five children is chronically malnourished, the one business booming amid all the gloom is the selling of patties made of mud, oil and sugar, typically consumed only by the most destitute.

A housewife, shopping for vegetables in Cairo, said, ominously, “If all the people rise, then the government will resolve this. But everyone has to rise together. People get scared. But we will all have to rise together.”

Source-Medindia
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