Skyrocketing world rice prices that have tripled in Asia over the course of the year may come down, but overall food prices will remain high for years to come, a UN food agency warned on Thursday.

High oil prices, growing demand, flawed trade polices, panic buying and speculation have sent food prices soaring, trigging protests from Africa to Asia and raising fears that millions more will go hungry and suffer malnutrition.
The food and Agriculture Organization (FAO) said it had some good news: The world prices of most agriculture commodities have started to drop, The bad news: The prices are unlikely to fall back to pre-2007 levels, the agency said in a report Thursday.
“We are facing the risk that the number of hungry will increase by many more millions of people,” said Hafez Ghanem, assistant director general of FAO.
Condition on the global rice market could ease as new crops are harvested around the world. But price pressures will remain high until at least October or November, when the bulk of this year’s paddy crops reach the market, the report said. “Stock levels are low and you need several good seasons to replenish them,” Ghanem said, “There will be soe improvement, but we don’t expect a major change.”
Internationally, rice prices skyrocketed by about 76% from December to April while overall food prices have risen 83% in three years, according to the World Bank. In Asia, rice prices have tripled this year, with the regional benchmark hitting $1038 (Rs. 44841) a tonne on Wednesday for Thai 100% grade B white rice.
FAO said the price pressure could ease further if producing countries such as India relax export restrictions on rice.
In Geneva, the UN Human Rights Council debated a Cuban resolution, which said nations, “have a primary obligation to make their best efforts to meet the vital food needs of their population.”
The international community, meanwhile, must provide poorer nations with food aid and assistance so that farmers can increase food production and improve “food crop rehabilitation,” the draft resolution says.
FAO is forecasting an increase of 3.8% in this year’s cereal production compared with last year, assuming favorable weather. Tight wheat supply is likely to improve the most, the agency said, Milk, sugar and meat production are also expected to grow.
Recently, FAO said rice production is expected to hit a new record of 666 million tones (mt) worldwide, a global increase of 2.3%. Production in Asia is forecast to rise to 605 mt from 600 mt.
Bradley S. Klapper in Geneva, Switzerland and Sadibou Marone in Dakar, Senegal contributed to this story.

Japanese auto major to invest Rs. 1400 Cr & introduce small cars by 2010.

Toyoto motors corp will invest $350 million (about Rs. 1400 crore) for settings up a second plant in India as part of its plans to introduces a ‘strategic’ small cars in the country by 2010.

Ending months of speculation over the second plant, Toyota, which runs the Indian operation through a joint venture, with the Kirlosakar Group, has decided to set up the new plant at its existing location in Bangalore.
“We have decided to build the second in Bangalore at the site of the existing facility with the investments $350 million,” Toyota Kirlosakar Motor (TKM) deputy managing director K K Swamy said.

The new plant will have a production capacity of 1,00,000 units and will become operational by 2010, he added. The company’s current plant has a capacity of 63,000 units a year.
TKM has been scouting for a location for months and finally zeroed in on the existing location to drive synergies with the existing operations.
“From this plant, we will roll out a strategic new small car which is currently under development at our Japan R&D facility. The small will meet the broads needs of the Indian customers, ” Swamy said.
The new small car, which will have high localization level, is primarily aimed at the Indian market although some of it will be exported, he added.
Toyota had in the past declared that it would capture 10 percent of the Indian car market by 2010 and the new car is expected to play a key role in it.
Asked about the pricing and positioning of the small car, he said it would not be at the ‘Nano’ range nor it would be too expensive. “Currently, the product (small car) is under development and it is difficult to talk about pricing but we do have the excise duty benefits in our mind,” Swamy said