Sign up | Log in



Home  >>   Daily News  >>   Asean  News  >>   Commodities  >>   High food prices threaten Asia
NEWS UPDATES Asean Affairs        17  February 2011

High food prices threaten Asia

Related Stories

July 6,2010

Food security in Asia

June 30, 2010
Vietnamese steelmakers feel pressure

May 27-28, 2010
Vietnam: Major steel project seen changing hands

May 9, 2010
Vietnam’s rice shipments slightly down in 2009

April 29, 2010
Vietnam: Low prices put rice exports on a slow boat

April 12, 2010
Vietnam plans 2m tonnes of rice export in second quarte

March 6, 2010
Vietnam: High energy cost to push up cement prices

Surging food prices in India are forcing families to cut back on meat and vegetables. In Indonesia, they prompted the president to urge people to grow their own chili peppers. And in China, restaurant owners are feeling the squeeze.

Inflation is climbing across Asia as the cost of food jumps, echoing the previous global food crisis that peaked in 2008.

While people in the U.S. and other wealthy Western nations will barely feel the effects of higher prices, getting enough to eat is a big challenge for millions in Asia. Poor families typically spend more than half their household income on food and are bearing the brunt.

On Tuesday, the World Bank said in a report that global food prices have hit "dangerous levels" that could contribute to political instability, push millions of people into poverty and raise the cost of groceries.

The report said global food prices have jumped 29 percent in the past year, and are just 3 percent below the all-time peak hit in 2008.

Bank President Robert Zoellick said the rising prices have hit people hardest in the developing world because they spend as much as half their income on food.

The World Bank estimates higher prices for corn, wheat and oil have pushed 44 million people into extreme poverty since last June.

The report comes a day before finance ministers and central bank chiefs from the Group of 20 leading economies meet in Paris. Zoellick said he's worried some countries might react to food inflation by banning exports or implementing price controls, which would just aggravate the problem.

Wary of potential unrest, Asian governments are trying to keep food price inflation from spilling into the rest of the economy. Officials face a tough dilemma as they raise interest rates to dampen inflation. Too fast and it will choke off economic growth, too slow and the problem could spiral out of control.

The UN Food and Agriculture Organization says food costs have reached an historic high but recent good harvests are staving off the kind of food emergency felt in 2008, when shortages and skyrocketing prices caused riots in poor nations.

Other experts fear that the worst is not over yet. Inflation in Indonesia powered to 7 percent in January and 8.2 percent in India - where the cost of vegetables skyrocketed by almost two thirds - while in China it was near a 28-month high as food costs jumped more than 10 percent.

Analysts say Chinese inflation will head still higher in coming months because the government cannot quickly increase food supplies.

Huge swings in prices are characteristic of the latest bout of food inflation. In Indonesia, the price of chili peppers vaulted as much as 10-fold in recent months due to heavy rainfall that decimated crops.

Economists say higher energy prices also play a role, not only through higher transport and fertilizer costs, but also by encouraging farmers to use more of their land to grow crops for biofuels.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    17  February 2011 Subsribe Now !
• High food prices threaten Asia
Subcribe: Asean Affairs Global Magazine
• New trading hours for Indonesian bourse Asean Affairs Premium
• Indonesia to boost Asean tourism
• Metro Kajang to grow plantations
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippine central bank behind on interest rates
• Thai telecom DTAC gets approval for 3G
• Solar projects to increase Demco inventory
• Vietnam's climate change strategy
Asean Analysis    17   February 2011 Advertise Your Brand
• China and Asean-a good fit? Sponsor Our Events
Asean Stock Watch    17  February 2011
• ASEAN to Head to Record Highs
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand