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Main cause of world food crisis - speculation - Nazarbayev

Astana. May 19. Kazakhstan Today - The President of Kazakhstan Nursultan Nazarbayev considers that the main cause of world food crisis is speculation. The President stated his opinion at the event taken place on Sunday within World Economic Forum for the Middle East in the Egyptian city Sharm El Sheikh, the agency reports referring to president's press service. "Climate changes or manufacture of bio ethanol are named as the reasons of those cataclysms. But the main cause, in my opinion, is widespread speculation," N. Nazarbayev stated. "World financial crisis has forced speculators to withdraw huge resources from the share markets and invest them in exchange goods. For the first time in history this list has included not only traditional oil and gold, but also grain and sugar," he emphasized. The leader of the state noted that "financial crisis, expensive oil and sharply increased prices for food resources in the near future will define policy in the global world in many respects." "If world financial crisis is a problem, world food crisis is a tragedy for millions people of the planet. Sharp rise in prices for wheat, rice, and maize has already started to provoke discontent of the population in tens of countries," the President considers. He drew attention that "growing activity in the market of futures leads to increase in demand for oil as increasing volumes of raw materials are stored in storehouses for realization of delivery contracts." "In addition, oil companies do not reinvest enough in oil extraction," the President has added. N. Nazarbayev noted that "high prices for energy carriers make inflation grow upwards all over the world while economic growth goes down." "It is the problem that needs to be solved globally. Undoubtedly, expensive oil, financial and food crises are closely interconnected," he emphasized.

Resourse: Kazakhstan Today

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