国际英语新闻：No food crisis in sight, but greater market stability needed: FAO

ROME, Sept. 7 (Xinhua) -- Food commodities markets will remain more volatile in years ahead and the international community will need to develop appropriate ways of dealing with that, an official of the UN Food and Agriculture Organization (FAO) said on Tuesday.

On the current turbulence on international food markets, Hafez Ghanem, Assistant Director-general for Economic and Social Development, said the Group of 20 (G20) major economies could take the lead in devising measures to ensure greater market stability over the medium and long term.

"The market fundamentals are sound and very different from 2007-2008. Despite the shortfall in Russia's wheat production, this year's cereal harvest was the third highest on record and stocks are high. Under these conditions we don't believe that we are headed for a new food crisis, but we will continue monitoring the situation closely," he said.

Ghanem said given the importance of food markets in fighting hunger and ensuring economic stability, the FAO feels that the international community, perhaps under the leadership of the G20, should start looking at ways of dealing with higher volatility.

That would include discussion of improved regulation of markets, of ensuring greater market transparency, and of establishing an appropriate level of emergency stocks.

"We also need to find ways of assuring a fluid and efficient international trade in food products," said Ghanem.

On the concerns about speculation, Ghanem said the current situation was not created by speculators, but caused by a drought in Russia. Speculation can magnify the impact of real shocks but cannot create such shocks.

"Non-commercial actors are bringing much-needed liquidity into food commodities markets and that is welcome," said Ghanem.

"But while any idea of limiting their role would be counter- productive, we should perhaps be looking at ways of tightening the regulatory framework in futures markets in order to limit any adverse impacts from speculation while at the same time enhancing the transparency of such markets," the FAO official said.