19 Dec '11, 2am

Food prices could rise 5% in 2012 from impact of fuel, rice scheme

Food prices could rise 5% in 2012 from impact of fuel, rice scheme

The Nation/Asia News Network Monday, Dec 19, 2011 Food prices in the country are expected to increase by at least 5 per cent next year, due mainly to higher fuel prices, the government's scheme to increase farmers' incomes and uncertainty over further natural disasters. Pornsilp Patcharintanakul, chairman of the Board of Trade's Farm and Food Business Committee, said prices of commodities, including crops and livestock, will rise by at least 5 per cent next year for end-consumers, because of increased production costs. Food prices are expected to continue to rise gradually in subsequent years as production costs are further pressured by uncertainty related to natural phenomena, he said. The global oil price is expected to stay above US$100 (S$130) per barrel next year. This will result in rising prices of fuel crops, mainly maize, oil palm, sugarcane and cassava. The price...

Full article: http://www.asiaone.com/News/Latest%2BNews/Asia/Story/A1St...

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