No doubt global food prices have gone up. Last week big box food retailers and wholesalers started to ration key grains such as rice. The reasons for the sudden jump on food prices is complex. Particularly, speculation in the commodity prices, jump in fuel prices, and use of corn as a biofuel, drought, global warming, and increasing consumption are some of the reasons for the jump in commodity prices. It is completely surprising for high consuming United States to argue that the emergence of the Indian middle class as the reason for the jump in global food prices. The current US administration has indeed hit the pits and reached new lows. Really, rise in the middle class in India is the reason for jump in food prices? Really? I mean really? India is a net food exporter not an importer. You are unbelievable, lil bush and condi. Did you guys know that US agri-business is heavily subsidized by the American taxpayers so that corporations can make a tidy profit.
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May 6, 2008 at 10:51 am
I, for one, am glad the middle class is growing. Prosperity is a good thing. And, of course, the increase in demand will cause fluctuations in price, and the market will compensate. So, it is a factor.
But, to suggest that it is a key factor is dead wrong, in my opinion. The biofuel industry and the heavy government subsidies are the key to this whole mess, which can readily be seen if you look at examples such as the use of corn for biofuel in the last 20 years. The growing demand from the middle class is accentuating the problem, not causing it.
So, I guess that is a round about way of saying I agree with you.