What is the crisis?
For the first time since 1973, the world has been hit by a combination of record high food and fuel prices. The price of oilseeds and grains, such as wheat and maize, has doubled since January 2006, with over 60 percent of the hike taking place since January 2008, according to the World Bank. Rice more than tripled between January and May 2008.

Prices have begun to fall as the 2008 crop is being harvested, but recent floods in US states producing maize and soya-beans, and poor weather conditions in Australia have slowed the decline.

Since 2001, oil has rocketed from US$20 a barrel to an unprecedented $140. The World Bank says oil prices are now higher than any time in the last century, not only pushing up the price of food in poor countries importing staple grains and fuel, but also eroding their capacity to buy food.

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[9 Jul 2008 11:31]

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