International food prices are on the boil, literally. This has led to violent protests in many parts of the world from Haiti to Egypt to Indonesia, this year. The prices of major food grains like rice, wheat and maize have gone through the roof in most parts of the world in the last few years; global wheat prices rose more than 180%, while the overall global food prices increased by 83% during the last three years. High food and energy prices have pushed inflation to record highs in OECD countries, India, China and several developed countries. The dramatic spike in food prices worldwide has evolved into an unprecedented challenge of global proportions, says the United Nations. This clear and present danger now poses a serious threat to the global economic stability, if not tackled at the earliest. There are not many solutions though, and worst, the high prices are here to stay, at least in the short-term.

This April, nasty demonstrations in Les Cayes, Haiti, a tiny Latin American nation, turned into riots as scores of agitators who were protesting over rising food prices, which have gone up sharply in recent months, began looting shops and shooting at the UN peacekeepers. Violent protests in many parts of the Caribbean island that killed several and injured many led to the fall of the government. Similar riots broke out in Egypt, Cameroon, Mozambique and Senegal. There were protests in Uzbekistan, Yemen, Bolivia and Indonesia. In fact, recent clashes over food prices in many parts of the world prompted World Bank President Robert Zoellick to warn that 100 million people in poor countries could be pushed deeper into poverty by spiraling prices. "In just two months, rice prices have skyrocketed to near historical levels, rising by around 75% globally… In Bangladesh, a 2-kg bag of rice now consumes about half of the daily income of a poor family.

The price of a loaf of bread has more than doubled. Poor people in Yemen are now spending more than a quarter of their incomes just on bread," he said. According to Rising Food Prices: Policy Options and World Bank Response, global wheat prices rose 181% over the 36 months leading up to February 2008, and overall global food prices increased by 83%. The report predicts food crop prices to remain high this year and also next year before they begin to decline, "but they are likely to remain well above the 2004 levels through 2015 for most food crops."

The Analyst Magazine, International Food Prices, Global Wheat Prices, Global Economy, World Bank, International Food Policy Research Institute, IFPRI, Food and Agriculture Organization, FAO, Economists, Agricultural Tax, Agricultural Marketing, International Monetary Fund, IMF.