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It's grim news for everybody. [...] Wheat prices hit $24 a bushel this week in the futures markets, having been $3 a bushel four years
go. That dwarfs the rise in oil prices.
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"In some of these developing countries, prices have gone up 80 percent for staple food. If food is twice as expensive, we can bring half
as much in for the same price and the same contribution."
- Josette Sheeran, executive director of the U.N. World Food Program
American food aid is expected to drop from 2.6 million tons last year to about 2.2 million this year. Since America is
still the largest single food donor in the world, that means that people are going to starve to death. It's really as simple as that.
Already, 25 million people in India are believed to have cut their meals from two to one a day. The calorie intake from an average meal in El Salvador has fallen by half in less than two years. Riots have broken out from Mexico to Mauritania.
President Musharraf's electoral defeat in Pakistan can be partly attributed to his reintroduction of food rationing cards.
China and Russia are imposing price controls. Argentina and Vietnam are applying export taxes on food staples and
limiting wheat exports. Kazakhstan has frozen grain exports and Russia is considering doing the same.