Tackling Food Prices in staple foods essential for better functioning of Markets
25 Jan 2011
Surging food and commodity prices are undermining efforts to tackle global poverty and hunger and threaten economic growth, said OECD Secretary-General Angel Gurría.
Welcoming the French government's decision to make commodity price volatility and global food security priority issues of its G20 presidency, Mr Gurría said: "Agriculture markets have always been volatile, but if governments act together then extreme price swings can be mitigated and vulnerable consumers and producers better protected."
In a press release issued in the OECD website it is stated that: The OECD believes stronger discipline should be imposed on the use of trade restrictions - on both exports and on imports. OECD work has also shown the need for better public information on short-term production, consumption and stocks, as well as on medium-term market prospects. Greater transparency would help decision-making and avoid market panic, the OECD says.
OECD work has also shown that subsidizing biofuel production based on corn, sugar beet or vegetable oil can contribute to higher food prices, with only a limited impact on reducing greenhouse gases. It recommends to use alternative feedstocks - such as cellulosic materials - which produce energy more efficiently, and at the same time to allow more open trade in biofuels and feedstocks.
For further information please see: www.oecd.org/agriculture or contact the OECD Media Division (news.contact@oecd.org; tel: +33 1 4524 9700).
