U.N. agencies weigh response to food crisis

By Laura Macinnis

GENEVA (Reuters) - Leading figures from the United Nations met in Switzerland on Monday to chart a solution to dramatic food price increases that have caused hunger, riots and hoarding in poor countries around the world.

Vietnam acted to quell panic over rice supplies on Monday, banning speculation in the market after a "chaotic" buying binge in the Southeast Asian nation highlighted growing global fears about food security.

The move by the world's second-biggest rice exporter came as protests continued in some states in Africa over soaring costs for food and fuel which aid experts say threaten to push 100 million people worldwide into hunger.

Against this backdrop, U.N. Secretary-General Ban Ki-moon gathered together the heads of 27 international agencies including the World Bank, World Food Programme and World Trade Organisation to coordinate a response.

Officials familiar with the closed-door session said the main priority was to ensure that food aid reached those desperately affected by surging prices of wheat, rice, dairy products and other dietary staples.

Ban, who has described rising food prices as a "global crisis" and urged world leaders to discuss ways to improve food distribution systems and production, will address the press in the Swiss capital Berne on Tuesday.

Experts have linked the problems to factors including drought in Australia, higher fuel costs, the use of crops for biofuels and speculation on global commodity markets.

U.S. President George W. Bush is considering "what other aspects need to be taken care of" to help ease the crisis after announcing a $200 million increase in food aid earlier this month, according to White House spokeswoman Dana Perino.

"He's really concerned about the humanitarian condition around the world," she told reporters on Monday.

Meanwhile world aid groups continue to reel from the jump in food prices. World Vision, one of the globe's largest humanitarian organizations, said it may have cut 1.5 million people, or 23 percent, from its aid program because of a strained budget.

"Despite our best efforts, more than a million of our beneficiaries are no longer receiving food aid," said Dean Hirsch, president of World Vision International. "At least a third of these are children who urgently need enough healthy food to thrive."

VIETNAM ACTS

Reacting to heavy buying of rice over the weekend, Vietnam's Communist government asked authorities to regulate local markets and ban non-food traders from trading the grain.

Long lines and empty shelves were still evident on Monday in Vietnam, which like other nations has felt the impact of a nearly threefold rise in rice prices this year.

The rally was triggered by export curbs by top suppliers including Vietnam, which banned exports until the end of June.