Biofuel Subsidies and Food Prices in the Context of WTO Agreements Background

There has been an upsurge in world prices of major food items including grains, soya beans and oil seeds over the past decade or so, particularly between 2006 and 2008 when the prices of rice, soya bean, sunflower and wheat increased by more than 60 per cent (Figure 1). Prices of major cereals, though remaining high, have declined since mid-2008 partly due to improvements in supply of these food crops given better weather conditions, falling oil prices, the financial crisis and economic recession which weakened the global demand. However, high prices of food remain a major concern to net food importers and buyers1. Given their social and food security sensitivity, recent world food price upsurges have raised tensions around the world – with food riots and protests in countries like Cameroon