The G20 protects food prices and rice prices will bear the brunt of it

Before the Group of Twenty (G20) made a collective move, Thailand Vietnam vowed to keep the supply, and rice prices are expected to become the "immunity zone" for a new round of skyrocketing global food prices.

Overseas media yesterday quoted G20 officials as saying that several of the world’s largest economies are currently trying to adopt various measures to depress rising food prices.

At the same time, news from Thailand and Vietnam, the world's major rice exporters, shows that rice supplies are abundant this year, and analysts believe that the rise in rice prices in the first quarter of this year is expected to be contained.

The price of food is ready for G20. Li Changjun, who represented South Korea at the G20 meeting, said on the 7th that the G20 members are negotiating on a working group basis to increase global cooperation in the field of food security. He said, "France is emphasizing food security, and as the host country of the previous G20 summit, we are willing to completely solve the problem of price fluctuations."

French President Nicolas Sarkozy has asked the World Bank to conduct an urgent investigation on the impact of food prices. Thailand, the largest rice exporter, has vowed to maintain a stable export volume and avoid a repeat of the 2008 food crisis.

The World Food Programme (WFP) announced last week that global food prices reached a record high in December last year, and that the main food prices may continue to rise.

Analysts believe that if consumers in Asia and other emerging markets spend more money on food, then the purchasing power of other areas will be reduced, which is to place a great deal of hope on the global economy in the recovery of consumption in developing economies. It is not good news.

Supplying enough rice prices or taking the lead to avoid madness Although grain prices are still being “buy” at the moment, rice prices are expected to be the first to stabilize. Overseas media reported on the 7th that the world's rice exporters are well supplied by Thailand and Vietnam, and Asian rice staple foods are expected to avoid escalation.

Reported that Vietnam, the world's second-largest rice exporter, will start rice harvest next month, and overseas media predict that Vietnam's rice production in 2011 may be 40 million tons, which is higher than the 39.9 million and 38.89 million tons in the previous two years. At the same time, the Philippines, the largest importing country, reiterated on the 7th that rice imports this year will at least reduce by half the import volume recorded in 2010. Analysts said that these two factors alone should ensure that rice maintains a good balance between supply and demand over time. "Vietnam will harvest rice crops in February, and production may reach its peak in March, and rice prices are expected to decline," said Novel Agritrade, a large rice trader in Bangkok.

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