G-20 ministers meet begins; to focus on food prices

Paris, Feb 18 (PTI) Finance ministers of 20 most
influential countries will discuss ways to deal with rising
energy cost and food prices moving to "dangerous levels", at
their two-day meeting which began here today.
"International commodity prices are rising. Food
situation is a major issue which is going to affect the
international economy and trade. (It) is going to be
discussed," Indian Finance Minister Pranab Mukherjee said
ahead of the G-20 ministerial meeting here.
Mukherjee and finance ministers of rich and developing
countries such as China, Brazil, Russia, the US, Japan,
Germany and UK are meeting at a time when increasing food and
crude oil prices have replaced currency war and the bail-outs,
as the burning issues, as highlighted by the World Bank.
World Bank highlighted the gravity of rising food prices.
"Global food prices are rising to dangerous levels and
threaten tens of millions of poor people around the world,"
its President Robert B Zoellick had said.
The World Bank report said that about 44 million people
in developing countries have slipped into poverty on account
of soaring prices of food items.
The global food price index has climbed 15 per cent
between October 2010 and January 2011, it said, adding that
wheat prices have doubled during the same period.
Governments in several countries are battling food
inflation, which in India remains in double digit despite
moderation in recent weeks.
Noting that the global economic recovery is still
fragile, Mukherjee said, the ministerial meeting would focus
on achieving long-term sustainable growth.
"The recovery process from the international financial
crisis is still fragile. It was expected that by 2010, most of
the countries will recover.
"There is strong recovery in North America, particularly
the USA, but it is still fragile, particularly in four
countries where sovereign debt is very high (and ) are
causing problems. These countries are Ireland, Portugal, Spain
and Italy," Mukherjee added.
Currency war, which was a major issue at G-20 meetings in
South Korea last year, will take a back seat this time. The
currency war refers to competitive devaluation of currency by
certain countries to keep their exports competitive.
"I don't think it (currency war) is going to be that
prominent in this meeting of the G-20. It was exhaustively and
extensively discussed during the last meeting (in South
Korea)," Mukherjee said.
The G 20 countries collectively account for 85 per cent
of the global output and two-third of the world population.