2008 is expected to see a substantial rise in harvest worldwide but the food prices are likely to be very high for poor countries of the world, says the UN food organization.

The Food and Agriculture Organization of UN has forecasted that in 2008, a rise is expected in global harvest but the food prices are likely to be four times higher in comparison to the food prices in the beginning of the decade (2001-2010) for many poor countries of the world, as reported by REUTERS Africa. Thus, the food crisis will continue in the global food market.

The organization reveals that the food prices are likely to be high (in nominal terms) in comparison to past but less than the present records. The inflation adjusted prices of wheat, rice, corn and oilseed are expected to be go up by 2%, 1%, 15% and 33% in comparison to average food prices recorded in 2005-2007.

A rapid increase in prices of agricultural commodities in 2006, 2007 and Q1 2008 is considered as the main reason behind the rise in food prices in the global market. Also, rising consumption of food in emerging economies like China and India, bad weather conditions, and increasing fuel prices are leading to a decline in production of agricultural commodities and resulting in rise in food prices. The increasing use of food grains in biofuel production is also leading to a rise in food prices.

However, the most vital factor resulting in inflating world food prices is low exportable supplies due to utilization of many crops surpassing their production in several key exporting countries.

The food prices are expected to drop from the present records but the problem of food prices will continue, especially for poor countries.

A Senior Research Analyst at RNCOS said, “The UN forecast reveals that the improvement prospects are very low in world food crisis in short-term. Also, rise in international demand for food and a decline in supply are some factors that are going to maintain the present situation of global food market. Thus, the UN should revise its (food) strategies to fulfill the food demands of poor countries with the help of key food producing countries.”

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