Laos - Soaring food price hits poorest harder

The world's least developed countries including Laos are the most heavily affected by the global economic crisis and rising food prices, according to the Minister of Agriculture and Forestry of Laos.

During a recent speech in Luang Prabang province marking World Food Day, Vilayvanh Phomkhe said the economic crisis had resulted in rising unemployment and soaring food prices.

"From 2009 and 2010, the price of rice in Laos went up dramatically, soaring 40 percent, and had a direct impact on the stability of social and economic aspects including the food price structure, food production and the food market," he said.

"The heaviest and most adverse impact is that people on low incomes may not be able to afford to buy food when the price rises," he added.

"Food Price–from Crisis to Stability" has been chosen as this year's theme for World Food Day to shed some light on a trend that is hurting poor consumers, small producers and agriculture in general.

The FAO Director General issued a message to mark the day, saying "If we are to seriously address the issue of world hunger, more effort has to be made to address the problem of food price fluctuations particularly for those who spend most of their incomes on food."

According to the FAO, eight million people are born every year, creating more demand for food. The stability in food markets depends on increased investments in agriculture, particularly in developing countries where 98 percent of the hungry live and where food production needs to double by 2050 to feed the growing population.

Greater policy coordination in international food trade can reduce volatility by helping maintain an assured flow of goods. FAO supports the elimination of trade-distorting agricultural subsidies in rich countries.

Laos has a population of 6 million people of which more than 80 per cent live in rural areas with some scattered in remote areas.

Unfortunately, the country's rain-fed rice production this year was seriously affected by flooding and plant diseases.

Vilayvanh said thousands of food production areas have been destroyed by flooding nationwide, with the worst affected areas in central and southern Laos.

The disasters caused widespread damage to roads, irrigation, property, livestock and fishponds with an estimated total loss of more than 1.76 trillion kip 9US$220,137). The agriculture loss has sparked concerns over food security in the upcoming year.

As poverty and hunger is the biggest concern of the world, the United Nations has been taking a leading role in several mitigation measures to fight against poverty.

The UN conference in 1993 formally assigned October 16 as World Food Day. Government bodies and other organisations gather to commemorate this event every year in order to enlighten and motivate people and to raise funds to fight for poverty eradication and food security.

News Desk

Vientiane Times

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