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Rising food prices: After Rice, Bush blames India

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Agencies

Posted online: Saturday , May 03, 2008 at 10:54:08
Updated: Saturday , May 03, 2008 at 12:20:36


Washington, May 3: Prosperity in countries like India is ‘good’ but it triggers increased demand for ‘better nutrition’, which in turn leads to higher food prices, US President George W Bush said.

The comments come close on the heels of US Secretary of State Condoleezza Rice's controversial statement that ‘apparent improvement’ in the diets of people in India and China and consequent food export caps is among the causes of the current global food crisis.

At an interactive session on economy in Missouri, Bush argued that there are many factors for the present crisis, only one of which was investment on biofuels like ethanol.

"Worldwide there is increasing demand. There turns out to be prosperity in developing world, which is good. It's going to be good for you because you'll be selling products in the countries, you know, big countries perhaps, and it's hard to sell products into countries that aren't prosperous.

In other words, the more prosperous the world is, the more opportunity there is," the US President said. "It also, however, increases demand. So, for example, just as an interesting thought for you, there are 350 million people in India who are classified as middle class. That's bigger than America. Their middle class is larger than our entire population.

"And when you start getting wealth, you start demanding better nutrition and better food, and so demand is high, and that causes the price to go up," he said.

Bush also listed change in weather patterns and increase in basic costs like that of energy as factors contributing to higher food prices.

"No question that ethanol has had a part of it. But I simply do not subscribe to the notion that it is the main cost driver for your food going up," Bush said.

Several international experts have in recent days held biofuels, until recently cast as a miracle alternative to polluting fossil fuels, for being responsible for usurping arable land and distorting world food prices.

"Actually, the reason why food prices are high now is because, one, energy costs are high, and if you're a farmer, you're going to pass on your cost of energy in the products you sell, otherwise you'd go broke.

"And when you're paying more for your diesel, paying more for your fertiliser because it's got a lot of, you know, natural gas in it, in other words, when your basic costs are going up, so does the cost of food," Bush said.

He said there are two aspects of rising food prices -- its effect on US citizens and the fact that there is a food scarcity in the world.

"We don't have a scarcity issue in America...We got a price issue. Our shelves aren't going empty, it's just costing more money," Bush said. "There is scarcity in the world, and I happen to believe when we find people who can't find food we ought to help them find it," he said adding, "America is by far the most generous nation when it comes to helping the hungry."

"We're an unbelievably compassionate nation," he said. "I think we ought to change our food policy in Africa and other developing countries...buying food directly from farmers as opposed to giving people food. I think we ought to be saying, 'Why don't we help you be able to deal with scarcity by encouraging your farmers to grow and be efficient growers? Otherwise, we're going to be in this cycle forever."

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Food crisis by DJ on 03 May 2008

Whats wrong with these comments?! Isn't it true more people in India and China can get better foods in more quantity than before?! Ofcourse that will cause some temporary imbalance in supply demand equation. With time, the production will go up and this problem will be solved!

Cheapest News by SK on 03 May 2008

Indian express is the cheapest indian news company both in terms od price and content. This report is an example of how cheap they can be to get attention. Perfect example of lack of jouralistic ethics

Media hype by Jojo on 03 May 2008

Oh come on, what sort of sensationalist hype is this? There was nothing wrong in what Bush said, and we need not be so touchy about every word uttered. I always hold Indian Express in a high regard and did not expect this; this headline was more in 'Timepass of India's line. Come on IE, to compete, you do not have to stoop to such a sensationalist level.

Misleading Headline by Shekhar Naik on 03 May 2008

A responsible paper like Indian Express should understand the difference between BLAME and REASON.Was there anything wrong in what Bush explained?

BUSH MAN HIT ON HEAD BY INDIA BOTTLE by JATI HOON on 03 May 2008

When Bush man came out white house jungle, he was hit on the head by rising food prices, could not explain the cause, blamed India.Bush-Bush-Bush, the king of the jungle......says the press.

Bush's Eyes are 'hungrier'. by Ganesan Kannuchamy on 03 May 2008

President Bush's knowledge on economics is no doubt serves a reminder to the world that the crisis is all due to the failure meeting the demands of 'hungrier eyes' in the USA and not the 'hungrier stomachs' in India anymore.

Read the news not headlines by vijay on 03 May 2008

I just don't understand. I know most of journalists have low IQs. But this one got to take the cake. Come on! He did not blame India. Our low IQ, self important journalists. They want to put some headlines that get some attention. Unfortunately, they are what they are. You can't help them.

Pot calling the kettle black by Vijay USA on 03 May 2008

The US is also to be partially blamed for rising food prices. The Americans like their gas guzzler cars which drive up the demand for gas in turn drives the prices. The answer to high oil prices is ethanol which is made from corn, and is a good cash crop for the farmers. As a result American farmers started planting corn instead of wheat. The ethanol was supposed to be made from a by product not replacement of food grain. US blaming others for rise in food prices is pot calling the kettle black.As far as changing diet, the Americans are one of the most obese people in the world.

Partly true by mydaksha.com on 03 May 2008

This tatement is partly very true becasue i have observe India is healthy. There is no doubt about it. But there is no actual study done extensively whether we are producing more compare to previous years.Rajesh Dharia

We want US investment dollars and US salaries, but are very nationalistic about a small remark. by Sushma on 03 May 2008

People think about pre-1990, very low salaries, Indian businessmen taking advantage of Indian legal system which failed in protecting individual rights of citizens. Highly corrupt government which is obsessed with controlling people and being the Brown British masters. Now, US investments gave money and better living to talented people. I think we Indians are jealous of the American success and are too sensitive about the nationalistic feelings. In reality we are slightly better than a failed nation, atleast American investments gave us hope and a better life. So, stop being sensitive and overly nationalistic and try to make the country better by getting rid of poverty and social justice, everything and anything else, just ignore it.

BULL SHIT BY IE by sridhar on 03 May 2008

IT IS A LOT OF BULL SHIT BY IE AND OTHER NEWS PAPERS. A SLIGHTEST REMARK BY A USA POLITICIAN IS TWISTED AND REPORTED IN. IE. FOR EXAMPLE, IF INDIA IS INDICATED ALONGWITH SEVEN OTHER COUNTRIES, OTHER SIX ARE EXCLUDED, AND IT IS SHOWN LIKE ONLY INDIA WAS MENTIONED. IF CHINA AND INDIA ARE MENTIONED, IT IS TITLED AS INDIA. I THINK IT IS MORE LIKE FEELING SATISFACTION IS SOME BODY IS TAKING NOTE OF INDIA'S EXIXTENCE.

Nutriton by Himanshu on 03 May 2008

These commaents are bullshit. What he want to say, "we should stop eating". Whats economy after all. What use of the world. no body will eat anything. there will be no crisis. all will die. i think that will be a better world. I can t understand what these shitty us people want? they dont want arab countries to sell oil. They are questioning our prosperity for sake of world economy. He is the kind of person who should be hanged right now.

How dare you Mr Bush?! by A on 03 May 2008

I'm sorry but it sounds as though the US Government actually believes that the rest of the world must starve while they burn the food they grow (Yes they are burning corn to make ethanol instead of eating it). Several million people in India still do not get enough nutrition. If anything food consumption must increase in order for at least satisfactory development of the country and the people.

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