EU takes urgent step to ease food prices

The European Commission stepped in yesterday to try and ease some of the pressure resulting from rising food prices by suspending import duties on certain cereals, particularly those used for animal feed.

As world food prices reach alarming levels, Dacian Ciolos, Commissioner for Agriculture and Rural Development, said the decision, supported by member states, should ease tensions on the European cereals market. The suspension relates to tariffs on low and medium quality soft wheat and feed barley.

“While prices remain high on world and EU markets we have an obligation to do what we can to help ease the situation,” Mr Ciolos said.

MEPs yesterday backed a resolution calling for urgent measures at EU level “to combat food price manipulation and ensure that food production is maintained in the EU”.

According to the latest report of the World Bank, rising food prices have driven an estimated 44 million people into poverty in developing countries since last June as food costs soar to near 2008 levels.

“Global food prices are rising to dangerous levels and threaten tens of millions of poor people around the world,” World Bank president Robert Zoellick said. “The price hike is already pushing millions of people into poverty and putting stress on the most vulnerable who spend more than half of their income on food.”

Wheat prices on world markets have doubled between June 2010 and this January. Maize prices are about 73 per cent higher but, crucially for many of the world’s poor, rice prices have increased at a slower rate than other grains. Sugar and edible oils have gone up sharply. Other food items essential for dietary diversity in many countries have also increased in price, such as vegetables in India and China and beans in some African countries.

Malta, which imports almost all of its food, has been experiencing its own rise in prices over the past few months with increases announced in various products including bread and milk.