NEW DELHI – Asia, facing some of the highest food inflation in the world, may support the broad thrust of France’s push for G20 to tame volatile commodity prices but it is also seen as only part of the solution to ensuring the world can afford to eat.
South Korea said it supported the plan but an Australian farming body said the proposal put forward on Monday by French President Nicolas Sarkozy was avoiding the “elephant in the room” – the need to reduce trade barriers. “To suggest that the problem is solely around regulation or practices around commodities markets is missing a large portion of the issue,” said Charlie McElhone, economics and trade manager for Australia’s National Farmers Federation.
Sarkozy targeted commodity price volatility as he laid out plans for France’s turn at the helm of the G20 group of leading economies, calling for improved transparency and tougher regulation. “If we don’t do anything we run the risk of food riots in the poorest countries and a very unfavourable effect on global economic growth,” Sarkozy said.
Food prices, which shot to record highs in December, have also moved to the top of the global policy agenda.
