Food Price Volatility

It may seem that commodity prices are down, but countries remain nervous about food price volatility. At the United Nations, they passed a resolution (A/RES/66/188) that will keep food pricing at the top of the agenda. In a process led by the Dominican Republic, there has been good G77 support for a variety of measures including:

• Establishment of a special open-ended working group to present recommendations towards “reducing excessive price volatility and speculation in food commodity markets, including derivatives such as futures and over-the-counter transactions, taking into account relevant work done at national, regional and international levels”
• Asking the United Nations Conference on Trade and Development (UNCTAD), FAO, and the United Nations Development Programme and others “to continue their research and collaboration with relevant international organisations, to continue their research and analysis on this matter” and submit a joint report by March, 2012.

The resolution includes agreement to have food price volatility as an agenda item for the next General Assembly of the United Nations.