http://www.enn.com/agriculture/article/34367

From: Reuters
Published April 9, 2008 07:32 AM

By Mayank Bhardwaj

NEW DELHI (Reuters) - Food riots which have struck several impoverished countries could spread with shortages and high prices set to continue for some time, the head of the United Nation's Food and Agriculture Organization (FAO) said.

A combination of high oil and fuel prices, rising demand for food in a wealthier Asia, the use of farmland and crops for biofuels, bad weather and speculation on futures markets have pushed up food prices, prompting violent protests in a handful of poor states.

Jacques Diouf, director general of the Rome-based FAO, said on Wednesday during a trip to India that there was a growing risk of social instability in countries where families spent more than half their income on food.

"The problem is very serious around the world due to severe price rises and we have seen riots in Egypt, Cameroon, Haiti and Burkina Faso," he told reporters in New Delhi.

Five people have been killed in a week of demonstrations in Haiti over high food prices in the poorest country in the Americas, while unions in the West African nation of Burkina Faso called a general strike over soaring food and fuel costs.

"There is a risk that this unrest will spread in countries where 50 to 60 percent of income goes to food," Diouf added.

He said world cereal stocks were enough to meet demand for eight to 12 weeks, while grain supplies were at their lowest since the 1980s.

"This is due to higher demand from countries like India, China, where GDP grows at 8-10 percent and the increase in income is going to food," Diouf said after meeting India's farm minister, Sharad Pawar.

He said he was advising governments to invest in irrigation, storage facilities and rural infrastructure and increase productivity to meet the challenge of food scarcity.