Speculators return to the charge. Are being left behind blackmail European states through its sovereign debt markets. Time is now speculative prices achieved in food commodities and oil and suffer especially poorest countries. No wonder the origin of the riots in Egypt and the Maghreb countries is in the dire situation suffered by thousands of citizens who can not afford the prices achieved in food. Nor can farmers cope with the price of seeds, fertilizers and seeds which leads us to another food crisis.
The global food prices reached their highest level in the last quarter century that condemns millions of people into extreme poverty. Sugar and oilseeds are leading the rise, but cereals, which account for 46% of global consumption of calories, are still below the peak levels of 2008.
Those most affected for this rise are the poorest, who spend more than 70% of their income on food. The only factor so far is encouraging that in a number of countries, the domestic prices of some basic foods remain low compared to world prices that are driving speculators. The price index for food of the FAO, which measures monthly changes in the values \u200b\u200bof a basket consisting of cereals, oilseeds, dairy, meat and sugar, hit a 214.7 points in December, up from a previous record seen in June 2008 during the food crisis.
High food prices have returned to the spotlight, after that encouraged protests in Tunisia, which led to the downfall of the country's president this month, continuing demonstrations in Egypt and spread among populations most affected by this new price hike.
World leaders at the World Economic Forum in Davos last week warned that rising prices of food risks stoves generate more instability, even lead to war. And the surprising thing is that there are speculators who are slow despite a financial crisis triggered the biggest stories of the past three years without a regulation to limit speculation and volatility.
FAO warns of the risk of another crisis global food riots that occur, and called for greater regulation to control speculation in commodity markets. France, which currently holds the rotating presidency of the G-20, and FAO blamed financial speculation in commodities markets as a factor contributing to high prices.
France placed the issue of volatility in food prices high on the agenda of the G-20 and called a meeting of farm ministers of the group in Paris in June, to discuss concrete measures but by then it may be too late for thousands of people die every day from hunger.
The food crisis should also serve to strengthen this strategic sector in Europe through the reformed CAP as well as price controls applied by the major retail chains while still paying farmers miseries.
Then there is a new threat of energy crisis that has triggered the price of agricultural diesel by 27% last year, from 0.71 euros per liter in January 2010 at 0.90 euros at the moment. Filling the tank of a tractor de300 liters, costing the farmer about 270 euros, 57 euros more than a few months ago.
agricultural organizations warn that most of the farms on the verge of technical bankruptcy, any increase in production costs is a hard blow to hit revenues of farmers and ranchers, is why add to the current demand return of the Special Tax on Hydrocarbons (IEH) charged on diesel (0.078 euros per liter), the elimination of taxes on retail sales certain hydrocarbons, known as the rate of oil, and applying a reduced VAT rate to go from 18% to 8%.
is time for governments to take more seriously the measures taken against speculators in the markets for food and incidentally also protect producers of the performances of these. The food crisis to again highlight the importance of our farmers and recognize actively consuming products of our land.
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