New Delhi: Skyrocketing global food prices have forced the world's largest humanitarian agency World Food Programme, an arm of the UN, to appeal to governments to bridge a shortage of US $ 500 million in its food budget this year by May 1 so that 73 million needy could be fed.

This is the first time in the history of WFP that it has appealed for extra funds, not because of a crisis caused by famine or war, but because of market conditions.

"WFP issued an extraordinary emergency appeal to address the critical funding gap in its programmes created by soaring food and fuel prices. WFP urged 80 governments across the world to be as generous as possible in helping to close this gap - which stood at 500 million dollars on February 25 and has been growing daily," WFP said on its website.

World Food Programme (WFP), which is entirely funded by government and individual donations, had forecast a budget of 2.9 billion dollar to cover 2008 projects. But galloping prices left WFP with a 500 dollar million shortfall that it must cover by May, or cut back on its programmes, it said.

Consequently, the WFP revised its food assistance bill to 3.4 billion dollars for this year.

According to the WFP estimates, the overall food prices have risen by 55 per cent since last June and the trend continues. Last week, the cost of rice jumped to a 30-year high as prices for wheat and corn continued to spiral upward, it noted.

It further said that increased demand for grain from countries such as China and India, a series of poor global harvests, high oil prices, and a surge in ethanol production have all combined to drive up grain prices.
Source : PTI