In the month of july the food prices in the international market have appreciated in a big way,surpassing all earlier periodic rises in the last three years.According to a report of the World bank the prices have appreciated 33% in the month of july beating the previous high of 2008 This has primarily happened because of declining food production worldwide,and diversion to non food sector Maize prices have increased by 84% as compared to the last year,so also is the case of Sugar which has increased by 62% The rise of Maize prices have been partly attributed to Ethanol sector Even in case of Rice the prices have increased by 11%.As per the report the situation has been partly rescued by higher production of wheat in USA & Europe and Maize in Argentina & Brazil This continued rise of food & energy prices has created dangerous inflationary trends . This would create difficult problems for the poor & emerging nations . Though there is a prediction of world foodgrain production increasing by 3% in 2011-2012,but still the growth is predicted is meagre given the already depleating stocks and inflationary tendencies worldwide .Though in India the monsoon has been smooth,but still it would be too early to hazard any guess with this regard.So one just expect countries like India & China to have normal agricultural growth so that it does not aggravate already worsening situation.
