JAPAN: UN Asia Food and Agricultural head warns of market volatility due to natural disasters and calls for an end to export restrictions
Record ID:
465377
JAPAN: UN Asia Food and Agricultural head warns of market volatility due to natural disasters and calls for an end to export restrictions
- Title: JAPAN: UN Asia Food and Agricultural head warns of market volatility due to natural disasters and calls for an end to export restrictions
- Date: 15th January 2011
- Summary: TOKYO, JAPAN (JANUARY 14, 2011) (REUTERS) REGIONAL REPRESENTATIVE ASIA AND THE PACIFIC FOR U.N. FOOD AND AGRICULTURE ORGANIZATION HIROYUKI KONUMA WALKING IN KONUMA BEING INTERVIEWED (SOUNDBITE) (English) REGIONAL REPRESENTATIVE ASIA AND THE PACIFIC FOR U.N. FOOD AND AGRICULTURE ORGANIZATION HIROYUKI KONUMA SAYING: "Australia, floods. Brazil, floods. It's happening continuously, very frequently nowadays. So it will give the market price volatility, that the market reacts in a way to the external shocks." KONUMA'S CLASPED HANDS (SOUNDBITE) (English) REGIONAL REPRESENTATIVE ASIA AND THE PACIFIC FOR U.N. FOOD AND AGRICULTURE ORGANIZATION HIROYUKI KONUMA SAYING: "There should be an international rule that, yes we should discourage those countries who would like to restrict exportation of their food commodities. They should be asked not to do it." KONUMA BEING INTERVIEWED KONUMA TALKING (SOUNDBITE) (English) REGIONAL REPRESENTATIVE ASIA AND THE PACIFIC FOR U.N. FOOD AND AGRICULTURE ORGANIZATION HIROYUKI KONUMA SAYING: "Creating sufficient buffer stock is also important. Each country should have sufficient buffer stock which can prepare for any shortage and limit the price hike by releasing their own buffer stock." KONUMA BEING INTERVIEWED
- Embargoed: 30th January 2011 12:00
- Keywords:
- Location: Japan, Japan
- Country: Japan
- Topics: Disasters / Accidents / Natural catastrophes,Economic News
- Reuters ID: LVA2RE24TQ0D8KC5ROXE87YU5MUQ
- Story Text: The United Nation's food agency in Asia said on Friday (January 14) that recent floods could increase market volatility and that countries should avoid export-limits.
Hiroyuki Konuma, Asia chief of the U.N. Food and Agricultural Organisation, said conditions are worrying but won't lead to the sometimes deadly food riots seen two years ago, although disasters could influence market prices.
"Australia, floods. Brazil, floods. It's happening continuously, very frequently nowadays. So it will give the market price volatility, that the market reacts in a way to the external shocks," Konuma said in an interview with Reuters.
World food prices hit a record high in December after adverse weather affected crops, the UN's food agency said in a report last week that raised concerns about inflation, protectionism and social unrest -- factors that contributed to the 2008 food crisis.
In India, where vegetable prices have risen more than 70 percent in the past year, the government said in a statement on Thursday (January 13) that it would review import and export of all essential commodities, in its bid to tame spiraling food prices that have fueled rapid inflation.
Konumo emphasised however restrictions on free trade can only make the problem of food inflation worse, and called for rules to be made to prevent countries from closing themselves off.
"There should be an international rule that, yes we should discourage those countries who would like to restrict exportation of their food commodities. They should be asked not to do it," said Konuma.
India's food inflation is the highest among major economies in Asia and is an issue particularly sensitive to the government because roughly two out of every five Indians live on less than $1.25 a day, according to the World Bank's measure of poverty.
Governments such as South Korea are boosting food supply ahead of the Lunar New Year holiday next month, while its latest surprise hike in interest rates may be repeated as food and energy inflation intensifies.
"Creating sufficient buffer stock is also important. Each country should have sufficient buffer stock which can prepare for any shortage and limit the price hike by releasing their own buffer stock," Konuma said.
A rally in grains prices after a U.S. report on Wednesday (January 12) warned of dwindling global supplies suggested further price pressures may be in the pipeline. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None