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Top US and Brazilian agricultural officials have blamed the trade restrictions as the major force behind the soaring world food prices.

“Export restrictions in India, Vietnam and Argentina, among the world’s top producers of Rice, Soya and Wheat are reducing world food supply and inflating prices around the globe,” said Mark Keenum, Undersecretary for Farm and Foreign Agriculture Services at the US Department of Agriculture.

India and Vietnam have restricted most rice exports, while Argentina has banned wheat and beef exports and imposed heavy export taxes on soy.

After a meeting with agricultural officials in Brasilia, Keenan told that these restrictions have inhibited the capacity of its producers to maximize their income pushing up food prices far more than demand for biofuel.

Increased production of sugarcane-based ethanol has not reduced Brazilian bean, soy and corn output, as experts predicted, Brazilian International agribusiness secretary Celio Porto agreed.

Brazil is the world’s largest ethanol exporter, and last year signed accords with the US to boost biofuel production and draft international quality standards that would allow ethanol to be traded as a commodity, as oil is.

Keenum urged nations to cut farm subsidies and tariffs to boost world food production by giving smaller countries access to larger markets. This will help reduce food crisis.

Tags: Argentina, Biofuel, Brazil, Food Prices, India, US, Vietnam

People are not at all getting relieve from the rising prices in the essential commodities in India and inflation rose to a record high of 7.83% on the week ends on 3rd of May 2008. This was the highest value of inflation rate recorded in last 44 months.

In the previous week, that is the week ending on 26th APril inflation was at 7.61%. Despite Indian Government trying its best, inflation is not at all coming under control and the prices of the vegetables, essential food items etc. are increasing day by day.

The main gainers in the prices are fruits and vegetables, coffee, maize, spices, masoor rose, atta, coconut oil etc.

A few days back Indian Finance Minister PC claimed that the prices of the food items are begun to come down and very soon inflation index will also come down.

Tags: Finance, Finance Minister, Food Prices, Inflation Rates, PC

US President George Bush blamed the growing prosperity of India’s large middle class for global rise in food prices. Bush joined his top diplomat Condoleezza Rice in suggesting India’s role in the world food crisis as she had also said last week that apparent improvement in the diets of people in China and India and resultant export caps among the reasons for the skyrocketing prices of grain worldwide.

While commenting on the economy during a visit on Friday to World Wide Technology, Inc. in Maryland Heights, Missouri Bush said,”…the more prosperous the world is, the more opportunity there is, It also, however, increases demand.”

“So, for example, just as an interesting thought for you, there are 350 million people in India who are classified as middle class. That’s bigger than America. Their middle class is larger than our entire population. ”

“And when you start getting wealth, you start demanding better nutrition and better food. And so demand is high, and that causes the price to go up,”

But unlike Rice who acknowledged that biofuels may be a contributory factor, Bush would not agree that America’s new found love for corn-based ethanol was causing the prices of food to go up.

Major part of ethanol now is produced from corn causing increase in the price of corn, he said.

‘I’ve looked at this issue a lot. Actually, the reason why food prices are high now is because, one, energy costs are high. And if you’re a farmer, you’re going to pass on your cost of energy in the product you sell; otherwise you go broke,’ Bush said.

Weather-related problems are one more factor for the crisis as told by Bush. He said, “Some of the major producers of food have had drought. That’s what happens. Weather patterns change. And so there’s a lot of reasons why the price of food is high.”

Telling that America is by far the most generous nation when it comes to helping the hungry, he said, “No contest. We’re an unbelievably compassionate nation.”

Bush asked Congress to put some more money out, about USD 5 billion as compared to their USD 19 billion, over a two-year period of time, of food.

Tags: Bush, Food Prices, India, US