U.N. and World Bank say to tackle food crisis

GENEVA (Reuters) - U.N. agencies and the World Bank pledgedon Tuesday to set up a task force to tackle an unprecedentedrise in global food prices that is threatening to spread socialunrest.

The international bodies called on countries not torestrict exports of food to secure supplies at home, warningthat could make the problem worse.

"We consider that the dramatic escalation in food pricesworldwide has evolved into an unprecedented challenge of globalproportions," the United Nations said in a statement.

This had become a crisis for the world's most vulnerablepeople, including the urban poor, it said after a meeting of 27international agency heads in the Swiss capital, Berne, tochart a solution to food price rises that have caused hunger,riots and hoarding in poor countries.

"Though we have seen wheat prices fall over the last fewdays, rice and corn prices are likely to remain high, and wheatrelatively so," World Bank President Robert Zoellick told ajoint news conference.

Higher costs of wheat, rice, and other staples have putextreme pressure on aid providers such as the World FoodProgramme (WFP), a U.N. agency aiming to feed 73 million peoplethis year.

"We could afford 40 percent less food today than we couldlast June simply due to the soaring food prices," said WFPExecutive Director Josette Sheeran.

U.N. Secretary-General Ban Ki-moon called on theinternational community to provide the WFP all of the $755million in emergency funds it needs for the crisis.

"Without full funding of these emergency requirements, werisk again the spectre of widespread hunger, malnutrition, andsocial unrest on an unprecedented scale," Ban warned.

Concern about soaring food costs and limited supplies havetoppled Haiti's government and caused riots in parts of Africa.

The task force, bringing together the heads of U.N.agencies, funds and programmes, the IMF and the World Bankunder the leadership of Ban, will set priorities for a plan ofaction and make sure it is carried out.

WORLD BANK PLEA

The U.N. Food and Agriculture Organisation's (FAO) FoodPrice Index, measuring the market prices of cereals, dairyproduce, meat, sugar and oils, was 57 percent higher in March2008 than a year earlier.

The surge is due to several factors, including increaseddemand in developing countries, higher fuel costs, drought inAustralia, the use of crops for biofuels, and speculation onglobal commodity markets.

There was at least some short-term easing in prices of keycommodities on Tuesday.

U.S. rice futures fell more than 2.5 percent, deepening aretreat from last week's record high as top exporter Thailandsaid it would release government stocks for domestic use andtraders looked ahead to Asian harvests.

The Thai pledge to release 2.1 million tonnes of stockpiledrice came a day after a trade official said the country's riceprices were likely to ease by about 20 percent in coming weekson increased supply from the new domestic crop.

Thailand is the world's top rice exporter.

The World Bank called on countries not to ban exports offood, saying that only worsens the problem.

"We are urging countries not to use export bans," WorldBank President Robert Zoellick said in a statement. "Thesecontrols encourage hoarding, drive up prices and hurt thepoorest people around the world who are struggling to feedthemselves."

(Additional reporting by Sambit Mohanty in Bangkok, MiyoungKim in Seoul, Apornrath Phoonphongphipat in Bangkok, CarmelCrimmins in Manila and Ho Binh Minh in Hanoi; Writing byValerie Lee and Keith Weir; Editing by Janet McBride)