Empresas y finanzas

U.N. says food riots to worsen without global action

By Robin Pomeroy

ROME (Reuters) - Food riots in developing countries willspread unless world leaders take major steps to reduce pricesfor the poor, the head of the United Nations Food andAgriculture Organisation (FAO) said on Friday.

Despite a forecast 2.6 percent hike in global cereal outputthis year, record prices are unlikely to fall, forcing poorercountries' food import bills up 56 percent and hungry people onto the streets, FAO Director General Jacques Diouf said.

"The reality is that people are dying already in theriots," Diouf told a news conference.

"They are dying because of their reaction to the situationand if we don't take the necessary action there is certainlythe possibility that they might die of starvation. Naturallypeople won't be sitting dying of starvation, they will react."

The FAO said food riots had broken out in several Africancountries, Indonesia, the Philippines and Haiti. Thirty-sevencountries face food crises, it said in its latest World FoodSituation report.

Some of the worst tensions have been in Haiti whereprotests at high cost of living descended into riots last weekand four people were killed in clashes with security forces.There is concern about rising prices in the Philippines, but itwas not clear what incidents FAO was referring to there.

"I am surprised that I have not been summoned to the U.N.Security Council as many of the problems being discussed therewould not have the same consequences on peace, security andhuman rights (without the food crisis)," Diouf said.

Increased food demand from rapidly developing countriessuch as China and India, the use of crops for biofuels, globalstocks at 25-year lows and market speculation are all blamedfor pushing prices of staples like wheat, maize and rice torecord highs.

While people in richer countries have noticed highersupermarket prices, the effect is far more pronounced indeveloping countries where 50-60 percent of income goes to foodcompared with just 10-20 percent in the developed world.

FOOD CRISIS SUMMIT

Diouf called on heads of state and government to attend afood crisis summit at FAO headquarters in Rome on June 3-5.

He said the priority was a "massive seed transfer" -- toensure farmers in poor countries could buy seeds, fertiliserand feed at prices they could afford.

Other necessary measures include creating financialmechanisms to ensure poorer food importing countries couldcontinue to buy the food they need and give a larger proportionof aid budgets to agriculture, Diouf said.

The comments echoed those of British Prime Minister GordonBrown, who called this week for a coordinated response to thefood crisis which would include reaching a deal on the Dohatrade talks and the possible use of market-based riskmanagement instruments to avert food price volatility.

Diouf said it was normal to expect developing countries toput controls on food exports, even if that exacerbated globalfood prices. The price of rice jumped 40 percent in three daysrecently when India and Vietnam banned exports, an FAO officialsaid.

"Export bans are a normal reaction for any government thathas a prime responsibility to its people," he said.

Expanded crop plantings this year should mean a 2.6 percentincrease in cereal output, with wheat up 6.8 percent on lastyear, FAO has forecast. But with only a small proportion ofthat reaching the open market, the effect on prices will benegligible as other prices pressure remain, it said.

(Editing by Chris Johnson)

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