Surging food prices have become a serious concern in South Asia, where food insecurity is relatively high, the World Bank Report on Global Development Finance has said.
"The situation has become increasingly acute across the region, especially in Afghanistan and Bangladesh," the report said.
It said rice producers, such as India, China and Vietnam, had imposed export restrictions to keep stocks for domestic use and to prevent price increase in the domestic market. "These policies have contributed to the increase in international grain prices," the report said.
A senior US official said yesterday that India's decision to impose certain export bans on non-Basmati rice and edible oils had "rattled" the international market.
"We can only adequately address this crisis if we discourage continued use of export controls that will harm India's neighbours and drive up world food prices," US Under Secretary of Commerce for International Trade Christopher A Padilla said while addressing a Heritage Foundation seminar.
He said while export bans were designed to increase short-term food security, (by) imposing the restrictions, these policies make the situation worse. Export restrictions take food off the global market, drive prices higher and discourage farmers from investing in future production, he added.
Besides the South Asian neighbours, several other countries, particularly from Africa, have asked India to lift the ban on foodgrain export.
