General expectations are that food prices will continue to rise. Bad news for consumers and ruling parties that is the conventional wisdom. Such conventional wisdom is bunk. Many compared him to Marie Antoinette who had famously recommended cake to those who didn t have bread. This means diversion of food to feed the animals that yield these high value foods. Corn is the preferred feed for poultry. Thanks to American attempts to produce large quantities of ethanol from corn corn prices have zoomed. So coarse grains are replacing part of the corn in poultry feed. The global shortage of wheat and rice have added to the upward pressure on food prices in general. The European Union has reduced its subsidy on milk. Europe s export of milk has fallen. India has suddenly started to export a lot of skimmed milk powder. Milk has emerged as a great white hope for agribusiness in India. Global demand creates an incentive for greater production of milk by raising mi! lk prices for local producers. Higher prices for food represent a huge opportunity for the farm sector. The point is to grab this opportunity raise output and market efficiently. This is a huge challenge that cannot be left just to the forces of the market. The government has to at the least remove these obstacles. or higher Firefox .
Source: http://economictimes.indiatimes.com/Columnists/T_K_Arun_Food_crisis/articleshow/2706411.cms
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