Biofuels blamed for hunger

Food prices will remain high over the next decade meaning millions more risk further hardship. A report published by the OECD and the UN's FAO food agency, ahead of next week's world food summit in Rome, urged immediate humanitarian aid for those worst affected. The paper also blamed biofuel for using up grain that could otherwise feed people and livestock. Speaking at an aid conference in Japan, the director of the World Food Programme, Josette Sheeran, said the effects could be catastrophic.

(SOUNDBITE) (English) JOSETTE SHEERAN, EXECUTIVE DIRECTOR AT WORLD FOOD PROGRAM (WFP) SAYING:

"Record high prices of food and fuel are a painful pinch for consumers all over the world, but for those who are living on less than a dollar a day, it's devastating. If these prices are sustained, the world's bottom billion could become the world's bottom two billion virtually overnight just because their purchasing power has been cut in half almost overnight."

Drought in big commodity-producing regions such as Australia, and growing demand from fast-developing countries such as China and India, were some of the reasons behind the increases.

And food and fuel price increases are closely related, though signs of a demand slowdown in some markets has caused the price to retreat earlier in the day. Asian countries, under pressure from oil companies, have been reviewing the fuel subsidies which have sheltered drivers from the shock of steep price rises.

And that's why Dutch truckers called on motorists to honk their horns to push for lower fuel taxes in the latest protest at soaring oil prices. Protesters called on the government to reverse a diesel tax hike that is due to take effect on July 1. Truck drivers have also been protesting in France, the UK and Bulgaria.

In the markets, stocks crept back into positive territory. The FTSEurofirst 300 was up around a third of a percent. In-line U.S. growth data had pushed European stocks down in earlier trade with banks the biggest drag on the index.

Stefanie McIntyre, Reuters

hardship - Extreme privation; suffering.
livestock - Domestic animals, such as cattle or horses, raised for home use or for profit, especially on a farm.
pinch - extreme stress or need: most companies are feeling the pinch of recession
shel·ter - To provide cover or protection for.