After reaching peak in 2008, food prices were coming down due to good harvests for most basic food items. But, severe weather in some of the world’s biggest food exporting countries damaged harvests and led to another spike in December 2010. Flooding in Pakistan, Australia, and Canada, and drought and fires in Russia have affected crops in 2010 and even in 2011. Wheat production is going to come down this year. It will push prices even higher. Speculators are also helping to jack up prices.
Wheat Production and Consumption | |||
|---|---|---|---|
| Year | Global Production | Global Consumption | Stockpiles (end of period) |
| MILLIONS OF TONNES SOURCE: US DEPARTMENT OF AGRICULTURE | |||
| 2006-07 | 596 | 616 | 131 |
| 2007-08 | 611 | 617 | 125 |
| 2008-09 | 683 | 643 | 166 |
| 2009-10 | 680 | 652 | 187 |
| 2010-11 | 646 | 665 | 175 |
However, prices of some crops are falling, especially if they do not depend on disaster hit countries for supplies. Countries like Mexico, Kenya and Uganda are seeing drop in prices of major crops. Meanwhile, others like India, Thailand, and El Salvador are seeing rising prices.
