On Precipice of Global Food Crisis, ActionAid Urges US to Address Underlying Causes
WASHINGTON – Following news that US corn stocks had reached their lowest levels in 15 years and the United Nations’ warning last week of the potential for another global food crisis, anti-poverty agency ActionAid USA today urges US policymakers to take steps to address the underlying causes of food price volatility.
ActionAid calls on the Obama Administration to place a temporary moratorium on the biofuels mandate that is restricting corn and soy supply, and to work with Congress to implement laws passed last year to curb commodity speculation and ensure that irresponsible trading practices don’t exacerbate global food price volatility.
“Millions of people in impoverished countries have not been able to recover from the last price spike – and they are being hit again only two years later. Irresponsible incentives to produce biofuels and excessive speculation in commodities are causing destabilized food prices and poor peoples’ right to food.” said Marie Brill, ActionAid’s senior policy analyst.
Riots have already broken out in Algeria, India and Mozambique, evoking memories of the 2008 global food crisis that sparked riots in 33 countries and pushed 100 million people into poverty.
“The global community must immediately act to curb violence and ensure access to affordable food. However, if we only stop there, we won't avert another crisis,” warned Brill. “We can break the cycle of crises by waking up to the fact that industrial biofuels are not the clean, green answer to energy security and rural development. In fact, they are worse for the climate than fossil fuels. Biofuels are inefficient as a fuel and expensive as a rural development tool. Not only has the excessive biofuels mandate pumped 40% of U.S. corn into fuel, restricting food supply, but the $6 billion payout in the form of an ethanol subsidy deepens our debt and restricts our capacity to invest in truly renewable fuels or in effective sustainable agricultural development.”
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Contact: Marie Brill, Senior Policy Analyst, 202-642-755