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Food prices 'to remain high in next four years'
Global food prices are to remain high until 2012 given high demand amid fast-growing population and rapid biofuel development, the Agriculture Ministry has warned
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Global food prices are to remain high until 2012 given high demand amid fast-growing population and rapid biofuel development, the Agriculture Ministry has warned.
Achmad Suryana, head of the ministry's Food Security Agency, said Wednesday evening, population growth and increasing biofuel projects would push up the global stock-to-consumption ratio for many crops.
At present, the stock-to-consumption ratio for paddy stands at 32 percent, for wheat 37 percent, 17 percent for corn, according to Achmad, citing ministry data.
"The ratio for corn has declined from 20 percent last year."
According to Achmad, global paddy, wheat and corn prices had soared by 200 percent, 47 percent and 29 percent, respectively, from May last year until May this year.
Food prices had since declined but are yet to reach the levels recorded in May last year, he said, adding that "the declining trend will likely be short term."
"In the medium term, around 2011-2012, food prices will remain high although there won't be the turmoil we had in early 2008," he added.
To help face these challenges, the ministry is attempting to increase productivity of food crops by investing heavily in research and development to improve agricultural infrastructure.
Achmad pointed as an example to the government's research efforts into new seeds that would be "more productive and resistant to climate-change, with new, more effective planting techniques".
"In the meantime, the ministry is developing a paddy variety that aims to become flood and drought resistant."
Other efforts include the rehabiliation and development of irrigation systems to improve the planting frequency index.
"We hope to be able to increase our planting frequency index from between 1.0 and 1.6 per year to between 2.0 and 2.5 through irrigation rehabilitation, without extending field areas," he said.
"Besides all these efforts, we also have to let go our reliance on food commodities used in fuel production, at least for 10 years ahead, as demand for food continues to increase," he said.
