Food crisis - What is the Reason !!!!!

''There are 350 million people in India who are classified as middle class. Their middle class is larger than our entire population. And when you start getting wealth, you start demanding better nutrition and better food. And so demand is high, and that causes the price to go up."

This isn't an analysis report about the global food crisis by the expert global economicist nor a report from the a world organisation about the global food crisis. This is a comment from the President of United states of America, George W Bush. Adding more to the comments, "The increase in the demand of food is due to the prosperity of the developing countries." Thus according to the comments of George W Bush, the properity of India and china are increasing which have created an increase in the food consumption in these country which lead to the global food crisis.

This total irrevalent comment without any figures from The President have drawn lot of criticism from India. Indian political leaders were fuming at The President for his state on the prosperity of the country. It isn't alone Bush, it was also from Condoleezza Rice, the Secretary of state said that the development in the countries like India and china have lead to the global food crisis.

This 'might' hit to be true by looking at the population these two countries and the economic growth these countries are undergoing. But that isn't the case. Though population of India and China together conduct one third of the global population, the consumption of cereals ( Wheat, Rice, Corn) have grown at considerable rate compared to that of one country. Here are the reports from FAO - Food and Agricultural Organisation of the United Nation.

According to the global market report of FAO, the Consumption of Cereals by India have grown by 2.17% from 2006-07 to 2007-08. Chile consumption have grown by 1.8% for the same period. One country where the consumption of cereals have grown high is none other than United States. For the same period, the consumption have grown by 11.81%. This is primarily due to the new method in which US is producing their Fuel.

Currently with the growing prices of Oil barrel ( $ 112 per barrel), US are currently producing Bio fuel using Corn. Though there is increase in demand from the India and China on the food and cereals, the actual inflation have been caused due to several constraits which the developed countried are undertaking. One such is corn used to produce Bio fuel in US, increase in the crude oil prices, increase in the use of Crude oil derived products for agriculture, increase in the investment on the future market leading to lowering interest in agriculture in developed country.

So India and china are the not one to be pointed at. Developed countries have to check in them and should help the world to come out of the Global Food crisis. Lets hope the President who know the figures from FAO would work out on it, rather just try to and attract everyone with his speech as " America is by far the most generous nation when it comes to helping the hungry."