Governments around the world take measures to rein in rising food prices

Dubai: Governments around the world have declared war on galloping food-price inflation and have instituted various means to put a lid on simmering social unrest.

UAE Economy Minister Sultan Bin Saeed Al Mansouri told the Federal National Council yesterday that the nation is investing in farms abroad, especially in Vietnam, Cambodia, Egypt, Pakistan, Romania and America to secure food supplies and protect itself from price fluctuations. He said the UAE is also in "serious negotiations" on agricultural investments with other countries including Australia and Indonesia.

In India, Prime Minister Manmohan Singh convened a cabinet meeting to discuss rising food prices, especially onions, which drove India's annual food inflation to 18.32 per cent for the week ended December 25. Saudi Arabia said it will increase wheat reserves to cover a year instead of six months. Indonesia said it will scrap the import duty on wheat, soybeans and livestock feed.

Algeria's government suspended customs duties and tax on imports of sugar and cooking oil after riots erupted last week. Bangladesh has launched a drive to distribute rice and wheat to the poor and Ethiopia has instituted price caps.

King Abdullah II of Jordan has instructed Prime Minister Samir Rifai to take "immediate and effective measures" to protect the poor and middle-class citizens.

The South Korean government said it would increase the supply of 16 items including vegetables, meats and fish.

Central bankers warned on Monday that rising prices in fast-growing economies were an increasing menace to global economic recovery. The Group of 20 nations also promised action on food prices, which have already pushed food inflation in countries such as Brazil, China and India into double digits.

Contributory factor

Prices of food and non-alcoholic beverages saw the largest increase after education costs last year in Abu Dhabi, according to data released yesterday by Statistics Centre Abu Dhabi (SCAD). These two categories, along with transport costs, contributed the most to an overall 3.06 per cent rate of consumer price inflation in the emirate last year.

SCAD said the maximum impact of inflation was felt by the middle-income group, followed by the lower-income and the high-income groups.