Return of global food crisis?

Russia's decision to keep its grain export ban in place until late 2011 raised again the specter of a repeat of the 2008 food crisis and the ensuing political upheaval and violence across the globe.

While Prime Minister Vladimir Putin was making the announcement on Thursday at a government meeting, at least six people were killed in Mozambique riots over food price hikes.

More than 100 people were injured in the deadly riot hitting Maputo, capital city of the southern African country, where local people have seen the price of a loaf of bread rise by 25 percent.

Russia's longer ban may contribute to higher global prices, which make analysts raise their concerns that the 2007-2008 food crisis might return and similar unrest over food prices will soon occur elsewhere in the world.

There are certainly ample reasons for their concerns.

Moscow announced a ban on grain exports last month in face of a record drought that has destroyed a quarter of its harvest.

During a government meeting, Putin said his country might extend the ban into next year "in order not to create unnecessary nervousness, to secure stability and predictability of business for all market players."

The expanded ban from Russia, the world's fourth largest wheat exporter, has sent international market prices to two-year highs.

The UN Food and Agriculture Organization (FAO) said it has recently further revised down its forecast for 2010 world wheat production, putting this year's wheat crop at 648 million tons, down 5 percent from 2009 but still the third highest ever.


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