FAO, G-20 Nations to Discuss Global Food Situation

The G-20 nations, a group of 20 of the world's major economies (19 countries plus the European Union), along with the Food and Agriculture Organization (FAO) will discuss possible food crisis scenario amidst widespread drought in the US and its impact on world food supplies to avoid a repeat of the 2008 food price hike.

According to an official of the French Agriculture Ministry, if the situation requires, a meeting of the Rapid Response Forum could be called in September, in the light of the U.S. drought situation - the worst in half a century.

Dramatic upsurge of the prices of U.S.' maize and soybeans was already seen and these could further aggravate if the drought would continue. This, in turn, would also affect the crops' export prices. The United States is the top producer and exporter of maize and soybeans. As of 2011, U.S. production of maize and soybeans accounted for more than 30 per cent of total world production, and U.S. exports of those crops represented over 40 per cent of total world exports.

According to the Washington-based International Food Policy Research Institute, poor and vulnerable groups in developing countries will be particularly hit by the high and volatile prices of the agricultural commodities, due to their dependency on these crops as their primary daily caloric source.

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