Concentrate on making 2008 harvest a success: FAO

By Russell Blinch and Crispian Balmer

WASHINGTON/PARIS (Reuters) - As U.S. rice futures marched to another record, the U.N.'s Food and Agriculture Organization exhorted farmers and governments to ensure this year's crop is a success in order to ease the growing food crisis.

Increased demand from rapidly developing nations such as China, the use of crops for biofuels, global stocks at 25-year lows and market speculation are blamed for pushing prices of wheat, corn and rice to record highs.

That in turn has sparked food riots in several African countries, Indonesia and Haiti. The FAO has said 37 countries face food crises but Director General Jacques Diouf on Wednesday said solutions were available.

"This is not Greek tragedy where fate is decided by the gods and humans can do nothing about it. No, we have the ability to influence our futures," he told a news conference in Paris.

"It's a good thing that international institutions ... are helping the poor gain access to food, but on our side we need to fight the most important battle today which is to ensure the 2008 farming season is a success."

In Tokyo, EU Trade Commissioner Peter Mandelson said the World Trade Organization should pressure food-producing countries to maintain exports. Some nations have banned exports in an attempt to avert domestic shortages.

"If we restrict trade, we're simply going to add food scarcity to the already large problems of food shortages that exist in different countries," Mandelson said in an interview.

"The WTO stands for free trade. It needs to exert its pressure and influence to reduce tariffs and thereby encourage trade. It's also got to stand up against export restrictions, export taxes, which too will stop the free flow of trade in foodstuffs and agricultural produce."