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India has firmly rejected the contention that rising consumption in developing nations was responsible for the food and fuel crisis gripping the world today. Instead India has turned the tables by stating that it is the policies of World Bank and IMF and ‘excessive and unsustainable’ demand in the developed countries which has led to the soaring food and fuel prices.
Nirupam Sen, Indian UN Ambassador has remarked that this trend has existed for more than a decade. Mr. Sen made the remarks at a special meeting of the United Nations Economic and Social Council. He further added that financial crisis leading to weakening dollar and diversion of grains to production of bio-fuels are amongst the major causes of the food and fuel crisis.
The US and European Union had few days back remarked that the growth of India and China has led to rise in consumption level which has ultimately led to shortage in the world markets. At the special meeting, Mr. Sen also blamed the policies followed by the Bretton Woods Institution (BWI) for the crisis and severely criticized their advice to countries to shift from food crops for domestic population to cash crops for exports. He remarked that such policies have predictable negative impact on food production.
