Nothings going off there YET. But say Russia has another drought and fires, USA has lower than normal crops, el Nina causes droughts/floods down there... inflation pushes the prices up as well as petrol prices... what will that do to food prices in those places this year?
From last week:
http://www.ft.com/cms/s/0/0dd506b6-1e7e-11e0-87d2-00144feab49a.html
Sounds like it could happen to any one of those countries.
From last week:
http://www.ft.com/cms/s/0/0dd506b6-1e7e-11e0-87d2-00144feab49a.html
Arab states act to restrain food costs
By Heba Saleh in Cairo
Published: January 12 2011 20:15 | Last updated: January 12 2011 20:15
Libya, Jordan and Morocco have taken measures to control food prices in the wake of violent protests in Tunisia and Algeria fuelled by anger over unemployment and poverty.
Libya has abolished taxes and custom duties on locally produced and imported foods such as wheat-based products, rice, vegetable oil, sugar and infant milk.
The government in Jordan cut taxes on fuel and some foods, and Morocco introduced a compensation system for importers of soft milling wheat aimed at keeping supplies stable as global prices rise.
Tunisia, one of the most tightly controlled countries in the Arab world, has suffered a month of rioting by youths angry at high unemployment. Neighbouring Algeria also erupted in riots for three days after prices of basic commodities such as oil and sugar rose steeply. The Algerian authorities hastened to reverse the increases to prevent further shows of public anger.
The Jordanian government said this week it was cancelling a special sales tax of 6 per cent on kerosene and diesel and it reduced the tax on petrol from 18 to 12 per cent. It also allocated more funds to state-run food providers that will reduce the cost of staples such as sugar, rice and poultry.
Sounds like it could happen to any one of those countries.