Thursday, November 01, 2007

Spiralling Food Prices

Mitigating steps/procedures are being taken by respective countries in combating against spiralling food prices which don't seem to have a ceiling price now. What I have blogged earlier on Foreseeable Increase in Daily Expenses will cause further increase if it materialise.

* Russia plans this week to impose Soviet-style price controls on a range of foodstuff to soften the blow ahead of parliamentary elections in December.

The government has signed an agreement with major food retail chains and producers to freeze prices on staples such as milk, eggs, sour cream, bread, sunflower oil, sugar and salt. They have also introduced export duties on wheat and barley.

* Ukraine is considering export quotas on wheat, corn and barley.

* China has released stockpiles of pork and is considering doing the same for vegetable oil and grain.

* Bangladesh, Jordan and Egypt, which suffered 'bread intifada riots' in the 1970s, are raising subsidies or slashing import tariffs.

* Argentina, where inflation this year is expected to be 8 per cent to 10 per cent, the government has struck accords with dozens of companies to control prices.

* Italy - Italian authorities opened an investigation into pasta manufacturers over alleged price fixing. Italian pasta makers have increased prices this year - expected to surge by 20 per cent by autumn - as durum wheat used for making the trademark Italian food nearly doubled in price.

* Japan - the government is also monitoring food prices. Marudai Food said two weeks ago it will raise the prices of its ham and sausages, following rivals Nippon Meat Packers and Itoham Foods. Instant noodle makers Nissin Food Products, House Foods and Sanyo Foods have also announced price increases last quarter.

And the oil price has hit a historic high of US$96 per barrel on 31 Oct 2007. Will the target price of US$100 per barrel materialise by year end, earlier than estimated?

Reading: UN warns of food inflation effects - Financial Times
Tags: Food Price, Food Inflation, Economics, Price Fixing, Export Quotas, Stockpiles, Import Tariffs, Export Duties

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