THE scenes aired by several media outlets earlier this month are startling. In the Egyptian Nile Delta City of Al-Mahala El-Kobra, riots against the skyrocketing prices of cereals and bread have become commonplace. This form of agitation is not confined only to Egypt but took place in several countries boasting fundamentally healthy economies. Egyptian Minister for Public Mobilization and Statistics has conceded that the price of cereals and bread have increased to a high record, nearly 48 percent during the past few weeks. In Yemen, it is no exception. Violence erupted in various places in response to the irrational rise of food prices. Some estimates say that the price of wheat, a vital staple for the Yemenis, has doubled since February. However, riots of this type are not new. Three years ago the Yemeni government removed fuel subsidy and this decision triggered nationwide riots and protests. Internationally, an economic and humanitarian crisis is looming on the horizon. According to a report published by German newsmagazine Der Spiegel as many as 850 million people in the developing world go to bed hungry every night. Some of those live in abject poverty so the current international crisis has a devastating effect on them, not to mention the far-reaching consequences that might impact the stability of numerous regional powers which have not yet seen such a dramatic increase in the prices of key food and essential commodities. Analysts say there are several reasons for the alarming rise in food prices. The climate change is believed to be the unseen force behind the soaring prices of key food items such as corn and cereals. Others believe that the climate change is also indirectly involved in the crisis since countries with predominantly agricultural economy like Australia have been hit by unprecedented drought. Experts say that up to 80 percent of fertile land there had been badly affected by the drought which has greatly jeopardized the country's production of food grain. Others believe that prices of food soared because of the rising prices of fuel. Once the fuel prices go up, nearly everything would follow suit. It is also assumed that the middle class in heavily-populated countries such as China and India is consuming more food due to the economic privileges gained as a result of massive investments in high-tech industries. But many economic experts believe that fuel prices peaked during the year 2007, a situation that forced many developed countries to seek other alternatives. Bio-fuel, a highly recognized alternative for the environmentalists, requires a fair amount of agricultural land. So many farmers in several countries turned their fertile land into refineries to produce corns so as to produce bio-fuel, but not food. World Food Program has warned that the current crisis is threatening as many as 20 million people, particularly those living in the world's most impoverished countries. Josette Sheeran, the WFP's executive director, said that “a silent tsunami is sweeping the world” and this would affect “more people in every continent.” Speaking on the same occasion, British Prime Minister Gordon Brown said that “tackling hunger is a challenge to each of us and it is also a threat to all of us and it is also a threat to the political and economic stability of all nations.” Here in Saudi Arabia, the Consumer Price Index (CPI) for March of this year was released furthering concerns that the inflation rate, as was previously speculated by the officials in the Saudi Monetary Agency, hit a new record high at 9.6 percent. The report indicated that the index went up to 114.2 points compared to 104 points in February. The overall Consumer Price Index rose 1.0% compared to February of this year. The rentals increased 15.8% during the past 12 months, health care 7.4% and food and beverages rose 14.2%. Regardless of the sound anti-inflationary measures taken by the Saudi Government, many people fear the worst: Another sharp increase in the prices of key food items is in the cards amid speculations that many countries may decide to control certain food exports. India, the third-largest rice exporter in the world, decided to ban exports of non-Basmati rice in an effort to combat inflation and, further, to control prices in the domestic market. Although Saudi Arabia has created the Saudi Food & Drug Authority, a non-profit organization, to monitor health-related issues, a science-based food safety system is urgently required in the Kingdom. The pros of such an agency far outweigh the cons, particularly during this time of high price fluctuations in the local food markets. It is also responsible for suggesting price lists that are affordable to many low-income people. Finally, the system also may suggest further measures which restrict imports of products that fail the health or quality standards. __
