A report by the UN body forecasts that food prices all over the world are likely to rise by as much as 40 percent in this decade.

The report titled OECD-FAO Agricultural Outlook 2010-19 said that rise in prices of wheat and coarse grain will go up by 15 to 40 percent than their average levels between 1997 to 2006. According to report, “Real prices for vegetable oils are expected to be more than 40 percent higher while dairy prices are projected to be on average between 16-45 percent higher.”

“The global agricultural output is growing more slowly over the next decade from last ten years. Nevertheless, the farm output is likely to meet the market demand of estimated population levels in 2050,” said Paris-based think-tank in its annual report.

“The world produces enough to feed its population, recent price spikes and the economic crisis have contributed to a rise in hunger and food insecurity,” the report further added.

The report mentions that one billion people are now estimated to be undernourished. So, the report urges that agricultural production and productivity will need to be stepped up, while a well functioning, rules-based trading system will be crucial to fair competition and to ensure that food can move from surplus to deficit production areas.

The report adds that the developing countries will provide the main source of growth for world agricultural production with Brazil rising by more than 40 percent in China, India, the Russian Federation and Ukraine is also expected to be well above 20 percent.

Read the report.