The Food Crisis

Presented By: Roya Gharwal Nabeela Mayvong Pamtingla Sanjay Kumar Dated:26.11.08

FOO D CR ISIS

One of the current world wide issue

Major Causes of Food Crisis Ø Production of Food based biofuel Ø Biofuel subsidies in the US and the EU Ø Rise in price of petroleum Ø Increased demand for more resource intensive food Ø Crop shortfalls from natural disasters Ø Rising prices Ø Distorted global rice market Ø World population growth

Major Causes of Food Crisis q Production of Food based Biofuel • diversion of food crops for making firstgeneration biofuels. • United States is the largest producer of cornbased biofuel • Brazil, the world's second largest producer of ethanol

Major Causes of Food Crisis qBiofuel subsidies in the US and the EU • Farmers switch to production of biofuel. • 23% of U.S. maize crops were being used for ethanol in 2006-2007.

Major Causes of Food Crisis

Major Causes of Food Crisis qPrice Rise q Population Growth qWorld Distorted Global Rice Market

Worldwide Impact of Food Crisis b a b m Zi we

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Worldwide Impact of Food Crisis

Worldwide Impact of Food q Afghanistan q Laos India Conclusion:

provinces which are According to Dr K Kof Barman an Indian economic teacher “food price inflation in Factors Food Price Wheat prices have international markets in recent months has crossed 40% where as in India it has facing food crisis Rise remained below 8%.” it is due to

Risen by an average Ø An increase of food grain production in two consecutive years 2006-2007 and 200760%. in price of 1. 3. OfXekong Increase 2008 due to favorable condition. 2. Pakistan Savannakhet has banned cereals Ø and affective government intervention in domestic market. 4. Climatechange 3.Timely Phongsali Export of wheat 5. Biofuels vs food Ø Tightening of monetary policies by RBI security Ø Banning on export of wheat and nonbasmati variety of rice to prevent domestic shortage of food.

Ø Fertilizer prices are not increased in response to the increase in international prices

HOW TO FIGHT AND COPE UP WITH THE CURRENT WORLD WIDE ISSUE: Take a food Pause Improve aidon Biofuels • U.N food official labels these policies “criminal” •The Foodforand Agriculture (SOFA) & FAO andstate has of called a five-year biofuels production recommended suspension. an end to the widespread practice of “tying” food aid“the government could modify policy • Brown says so that the blenders of ethanol collect the •Insubsidies contrast with in kind, “cash-based” only aid if they reduce production”transfers or food vouchers can stimulate local production, strengthen local food systems and empower recipients in ways that traditional food aid cannot”

HOW TO FIGHT AND COPE UP WITH THE CURRENT WORLD WIDE ISSUE: Produce higher yields • Better farming techniques can help alleviate shortages • The Gates Foundation recently announced $306 million in grants to boost agricultural yields in the developing world, with nearly $165 million to replenish depleted soils in Africa. Says Rajiv Shah, director for agricultural development at the Gates Foundation:

HOW TO FIGHT AND COPE UP WITH THE CURRENT WORLD WIDE ISSUE: Curb the Speculators Organizations whichTrade help the needy people to Break Down Barriers overcome food crisis:

qWorld Food Program (WFP) • With more than five million Zimbabweans facing severe food shortages the UN's World Food Programme is appealing for US$140 million to provide vital relief rations in year 2008. • The United States was the largest donor to WFP's operations in Zimbabwe in 2008, giving US$105 million, followed by the UK, which donated $18 million, and Australia with $14 million

HOW TO FIGHT AND COPE UP WITH THE CURRENT WORLD WIDE ISSUE: qThe World GroupGates (WBG)Foundation q BillBank & Melinda

•• On In May 2008,2008 the World Bank Group created aa $17.6 14th August this foundation has announced million of grants to help people facility most affected newpackage $1.2 billion rapid financing - the by the global food Food crisis and support small-scale in Global Response Program -farmers to speed developing countries. The largest grant of $10 million to the assistance to the neediest countries. As of World Food Programme(WFP)—, $2.9 million to Catholic October 9 2008, the program hadand approved and Relief Services, $2.7 million Mercy Corps $2 million Oxfam begun disbursing $193 million in 20 countries, America. including Somalia southern Sudan. United States agency and for international development (USAID) • USAID has provided 88% of the U.S international food aid and 39% of all global food aid for the current food crisis

We must go from this… ...to this.

References: • • • • • • • • • •

http://www.gatesfoundation.org . http://en.wikipedia.org http://www.iht.com http://www.wfp.com http://www.sundayherald.com http://www.bbcnews.com http://www.guardian.com http://www.reuters.com http://southasia.oneworld.net http://usnews.com