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UN food aid scheme endangered by high agricultural costs
Published in Saudi Press Agency on 25 - 02 - 2008


The United Nation's agency responsible for
relieving hunger in the world is drawing up plans to ration food aid
in response to the spiralling cost of agricultural commodities, its
director told the Financial Times newspaper Monday, according to dpa.
Josette Sheeran, executive director of the World Food Programme
(WFP), told the Financial Times that the agency would look at
"cutting the food rations or even the number or people reached" if
donors did not provide more money.
"Our ability to reach people is going down just as the needs go
up," she said.
WFP officials hope the cuts can be avoided, but warned that the
agency's budget requirements were rising by several million dollars a
week because of climbing food prices.
The WFP sees the emergence of a "new area of hunger" in developing
countries where even middle-class, urban people are being "priced out
of the food market" because of rising food prices.
The warning suggests that the price jump in agricultural
commodities - such as wheat, corn, rice and soya beans - is having a
wider impact than thought, hitting countries that have previously
largely escaped hunger.
"We are seeing a new face of hunger in which people are being
priced out of the food market," said Sheeran.
Hunger is now "affecting a wide range of countries", she said,
pointing to Indonesia, Yemen and Mexico. "Situations that were
previously not urgent - they are now."
The main focus of the WFP to date has been to provide aid in areas
where food was unavailable. But the programme now faced having to
help countries where the price of food, rather than shortages, is the
problem.
Sheeran said that in response to rising food costs, families in
developing countries were moving in some cases from three meals a day
to just one, or dropping a diverse diet to rely on one staple food.
In response to increasing food prices, Egypt had widened its food
rationing system for the first time in two decades while Pakistan had
reintroduced a ration card system that was abandoned in the mid-
1980s.
Countries such as China and Russia were imposing price controls
while others, such as Argentina and Vietnam, were enforcing foreign
sales taxes or export bans, said the Financial Times.
Food prices were rising on a mix of strong demand from developing
countries, a rising global population, more frequent floods and
droughts caused by climate change and the bio-fuel industry's
appetite for grains, according to analysts cited by the Financial
Times.


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