EU Blames India and China for Rise in Global Food Prices

Following the footsteps of President Bush, now the EU blames India and China for the increase in global food prices. According to the EU Commissioner for agriculture and rural development Mariann Fischer Boel, “the first elephant is the huge increase in demand from emerging countries like China and India. These countries are eating more meat. It takes about 4 kg of cereals to produce one kg of pork, and about two kg of cereals to make one kg of poultry meat. So a dietary shift towards meat in countries with populations of over 1 billion people each has an enormous impact on commodity markets.” However, this article does not quote any data to point to this growing trend of meat consumption in India and China. The article also quotes leading economist Jeff Sachs as saying that more than “third of the US maize crop in 2008 would be used to fill petrol tanks.” By the way, oil futures hit 123 dollars a barrel today. So, what is really driving global food prices, must be that the poor Indians and Chinese who live on less than a dollar a day are eating more. Hmm….we can’t have that happen. Can we?

Advertisements

Bushism, Global Food Prices and India–The Blame Game

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.

Ukraine Joins the World Economy

Another news item that sort of slipped our collective attention is that Ukraine quietly joined the World Trade Organization (WTO) as the newest member after 14 years of negotiations.  Ukraine will become the 152nd country to join the WTO.  According to the Ukrainian Premier Viktor Yushchenko it will boost the economy by nearly two percent per annum and give much-needed boost to metals industry, which accounts for nearly one-third of the economy.  It interesting to note that Soviet Russia is the only country with a major economy that is yet to join the WTO.