GENEVA, May 7, 2008 (Reuters) — The World Trade Organization cannot conjure up a short-term solution to soaring food prices but a successful end to global trade talks would help in the longer term, the organization's chief said on Wednesday.
Staple food prices have risen more than 40 percent in the last year causing shortages, hoarding and riots in many developing countries and prompting the United Nations to warn of malnutrition and social unrest.
Many countries have responded to the high prices by imposing taxes and other restrictions on exports -- allowed under WTO rules -- to try to ensure adequate supplies at home.
Bangladesh said on Wednesday it had banned exports of non-aromatic rice for six months to secure domestic supplies.
Export bans by India and Vietnam, in addition to dwindling world stocks, have helped rice prices in Asia to treble this year, ringing alarm bells for policy makers struggling to rein in inflation.