Global food prices hit record


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3 March 2011 last updated at 16: 30 GMT A worker packs onions in India food markets are "already precarious", the UN says global food prices hit record highs have, and even could further increase according to the United Nations.

The UN food price index increased 2.2% in February to its highest level since the beginning of the monitoring prices in 1990, the UN food and Agriculture Organization (FAO).

He warned also that tips in might make worse oil price "already precarious" situation in the food market.

Apart from sugar, the FAO said all commodity groups in the price rise.

Oil prices hit highs due to political unrest in North Africa and the Middle East before recently two - and a half years.

The FAO said that have added to the volatility on the oil markets to an already difficult and precarious situation.

"This adds to start even more uncertainty with regard to the price Outlook as well as planting crops in some of the most important growing regions," said the FAO David Hallam.

The International Monetary Fund (IMF) said he "was concerned about the situation".

IMF spokesman pointed out that "effects on the poorest and weakest, for all in the countries with low income, but not only there" Caroline Atkinson.

The prices of cereals, wheat, rice and maize, have risen in the last year to 70%.

This is both significant crop producers on droughts in Eastern Europe and floods in Australia.

The FAO said that it expected world cereal production to a total decreased in the last year.

In addition, it is also forecast increased demand for agricultural products for food, feed and fuel production.

These contradictory pressures could push higher prices.

However, the FAO said there were positive signs, the agricultural areas in Russia, which had droughts and forest fires Ukraine and Kazakhstan to the recovery of the last year.


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