The G20 group of nations are planning to hold a meeting to devise a unified response to the rising global food prices triggered by the worst U.S. drought in more than half a century, the Financial Times reported on Monday citing unnamed sources.
According to the newspaper, G20 officials plan to hold a conference call in the last week of August to discuss a meeting aimed at formulating a joint response to the crisis. It added that the planned meeting could be held in late September or early October.
The proposed G20 meeting would be the first of the Rapid Response Forum, a newly created body to "promote early discussion among decision-level officials about abnormal international market conditions," the daily said.
Rapid Response Forum is part of the G20-backed Agricultural Market Information System, and was created last year at the initiative of France. The forum is seen as a key policy response to the 2007-08 crisis.
Incidentally, the U.S. Department of Agriculture had slashed its forecast for corn production by 17 percent on Friday and predicted record prices for corn over the next year. The move triggered fears that the world was heading for a repeat of the 2008 food price crisis, and prompted the corn prices to hit
an all-time high. Notably, the prices of soyabean and wheat have also surged by about 30 to 50 percent since June.
The Financial Times cited unnamed G20 officials as saying that the planned meeting should not be interpreted as a sign of panic. They said it was rather part of part of efforts aimed at avoiding the repeat of national policies that resulted in the 2007-08 global food crisis.
"In many respects it is just making sure everyone is on the same page in terms of what the situation is, and certainly trying to discourage any policies that would exacerbate the volatility," the paper quoted one G20 official as saying in its report published Monday.
For comments and feedback: editorial@rttnews.com