Food Riots Break out in Africa while Food Inflation Soars in Asia

The recent weather catastrophe in different parts of the world has pushed up the food prices.The Russian Wheat Export Ban imposed earlier had exacerbated the situation with news coming of the ban being extended into 2011.The exponential increase in wheat price which had moderated earlier is starting to soar again.The rising food price has led to riots in the Maputo town in Mozambique where food prices were increased by25%.Food insecurity is raging in the poorest parts of the world amongst populations which are most vulnerable to slight increase in food prices.Wheat Prices have increased 74% in the last 3-4 months and other grain prices have moved up in sympathy as well.Food inflation is rearing its ugly head with India reporting double digit inflation in Food Prices.China has also sown increased wheat and port prices due to incessant flooding.Major Food importers like Bangladesh are increasing their imports of Rice as Wheat is expected to be in short supply.Animal Feedstock is being substituted with corn based products from wheat based products.This has led to a  general rise in prices of all grains leading to worldwide distress.Major food producing and consuming countries like China and India are clamping down on exports of food items as it is every country on their own.Globalization of Agriculture has not proved to be more of a bane than boon as speculation in agri futures has led to a faster rise in food prices.The future of Food Security looks bleak with increasing population and affluence marching ahead of the food growth.

Floods From Pakistan to Korea May Strain Aid as Food Costs Soar – Bloomberg

Floods sweeping through a swath of Asia from Pakistan to North Korea have killed thousands, left millions homeless and may stretch aid efforts as crops are destroyed at a time of soaring wheat prices.

In Asia, Afghanistan and North Korea are the most susceptible to shortages of food, the Economic Research Service of the U.S. Department of Agriculture said in a July report. “Afghanistan and North Korea are the region’s most vulnerable countries,” the report titled “Food Security Assessment, 2010-20,” said.

About 62 percent of the hungry people in the world are in the Asia Pacific and about a fourth are in sub-Saharan Africa, according to the U.N. Food and Agriculture Organization. The number of people who are hungry surged to 1.02 billion in 2009, the highest since 1970, the agency said.

India Food Prices Remain Red-Hot – WSJ

Prices of primary articles increased 15.19% from a year earlier, accelerating from the previous week’s 14.75% expansion, driven mostly by a higher costs of milk, fish and fruits.Food prices rose 1.8% in the week ended Aug. 21 from seven days earlier and the food inflation rate has stayed above 10% since November because of constrained supplies and last year’s poor rains, which were the lowest in almost four decades.

Putin Extends Wheat-Export Ban – WSJ

Russia said it would extend its ban on wheat exports into late 2011, pushing up the grain’s price and sparking fears of supply shortages and broader unrest over rising food costs. Warnings of possible unrest came this week as protesters spilled into the streets in Mozambique again on Thursday, after riots erupted the day before, the Associated Press reported. Bread prices there have risen about 25% in the past year, and fuel and water costs also are up.Russia’s announcement helped send wheat prices up 5.25 cents, or 0.8%, to $6.8075 a bushel on the Chicago Board of Trade Thursday. That is down 13% from its peak of over $7.85 a bushel in early August, but still up about 60% in less than three months.