Oral question asked in the House of Lords, by Lord Williamson of Horton (Crossbench). It was answered on Tuesday, 25 March 2008.

Food: Grain Stocks

Question: My Lords, does the Minister agree that, although there is no need to panic, we need a thorough examination by government and officials of the consequences of the extremely high world prices for wheat and, even more significantly, world record prices for rice, the principal food of the human race? Does he also agree that some countries have imposed export bans or intervened in the market already, and others plan to set up emergency stockpiles, so clearly the issue goes wider now than UK food prices and supply and is likely to affect food hunger, food aid and possibly political stability in some countries?

Answer: Yes, my Lords, to a greater or lesser extent, all the factors that the noble Lord mentioned will be relevant. There is no question about that, but there is no easy answer. The countries that have imposed export restrictions, including some in South America as well as the Ukraine and Russia, have done that for domestic purposes, trying to keep inflation down in their own countries. That has had added effect because of the adverse weather conditions; we have volatile weather conditions, as everybody knows. However, the actions taken will probably bring more land into production. So far as the EU is concerned, I mentioned set-aside. There will be a need to look at using land for biofuels. An inquiry was announced during the passage of the Climate Change Bill, in which the chairman of the Renewable Fuels Agency will have a look at the environmental impact and the impact on food prices of using food crops for biofuel. That is important, no doubt. Also, diets are changing round the world, especially in Asia and India, requiring more of the crops. Therefore, there will be more pressure on prices if we do not supply more crops. Clearly, no one Government can deal with that matter, but it is being looked at in the EU and on a world basis.

Secondary information