Taiwan battles to stabilise rice prices

TAIPEI (AFP) – Taiwanese authorities plan to inject tens of thousands of rice into the market next month in a bid to stabilise domestic prices, officials said Wednesday.

The move came as World Bank president Robert Zoellick warned foodprices rose by 15 percent between October and January, pushing 44 million people into poverty in developing countries since June last year.

The pinch has been felt in Taiwan where prices of corn, mostly imported from the United States and a major ingredient in animal feed, have surged 27 percent during the same period, pushing up meatprices.

To help reduce the cost of local livestock and poultry, the Council of Labour Affairs said that up to 65,000 tonnes of rice would be released from its inventory for sale to local animal farmers in March.

"This step is part of the government's efforts to stabilise domestic consumer prices," Yu Sheng-feng, deputy chief of the council, told AFP.

Although Taiwan's consumer prices have remained relatively stable, the island has felt the knock-on effect of drastic global fluctuations, with the economy heavily reliant on imports of various commodities.

The pressure posed by mounting prices prompted President Ma Ying-jeou to order government agencies to adopt countermeasures, including reducing import duties and cracking down on hoarders.

(Source: http://news.yahoo.com/s/afp/20110216/bs_afp/taiwanfoodpriceinflation_20110216142112)