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ADB Annual Meeting To Focus On Soaring Food Prices - Official

MADRID -(Dow Jones)- The Asian Development Bank will discuss ways to alleviate soaring food prices at its upcoming annual meeting, ADB Managing Director General Rajat Nag said Wednesday.

"We do expect discussions to center around food prices," Nag told journalists ahead of the meeting that starts here (Madrid) Saturday. The ADB holds its annual meeting outside of Asia every two years.

"It is an issue of rising prices rather than supply problems," Nag said.

According to Goldman Sachs calculations, global agricultural commodity prices are up over 8% so far this year, after a 41% rise in 2007.

Prices for rice - a basic food product throughout much of Asia - have reached nearly $1,000 a ton.

The run-up has been widely blamed on rising demand from fast-growing Asian countries, use of agricultural commodities in bio-fuels production, and poor harvests.

But some economists say export restrictions in many countries and other market-distorting practices have also played a role in the spectacular price rise.

"We have to look at the price issue that is keeping people from getting the food they need," Nag said, adding the ADB would try to implement targeted food aid programs to help needy Asian consumers and study ways to improve agricultural infrastructure in the region.

ADB Web site: www.adb.org

-By Jonathan House, Dow Jones Newswires; +34-91-3958121; jonathan.house@dowjones.com

(END) Dow Jones Newswires

April 30, 2008 10:06 ET (14:06 GMT)


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