Food prices: Leaders warn of “economic war”

28 January, 2011 by (comments)

With supply fears looming, some countries are racing to stockpile crops like wheat and rice, sending prices through the roof, the Financial Times has reported.

Countries are reacting to the various fires, floods and droughts of the last few months that have affected global crop yields, as well as to the current social unrest about food prices occurring in North Africa. Specifically, Algeria ramped up its wheat stocks, buying 800,000 tonnes, while Indonesia quadrupled their usual quarterly rice purchase. Saudi Arabia and Bangladesh have announced they’ll double their annual stores of wheat and rice, respectively.

World leaders currently meeting in Davos, Russia, for the 2011 World Economic Forum (WEF), warn that price volatility like this can further incite public protest and lead to “economic war”, reported the BBC.

Stay tuned for a roundup on the outcomes of the WEF conference in Davos.

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Filed Under: Agro-ecology and Economics @en