GUATEMALA CITY, Jan 25, 2011 (IPS) - The rise in prices of corn, beans and other staple foods, driven up by damages to crops caused by extreme weather events, is making it even harder for the poor to afford a basic diet in Guatemala, which has the highest rate of child malnutrition in Latin America.
And although the government of social democratic President Álvaro Colom recently decreed a new rise in the minimum wage despite resistance from businesses, which threatened to lay off thousands of workers, the minimum wage still falls short of covering the cost of the basic basket of goods and services.
"The price of corn is higher than it has been in four years, at 125 quetzals (15.60 dollars) per quintal (100 lbs)," compared to 98 quetzals (12.20 dollars) in 2009, Gustavo García, with the United Nations Food and Agriculture Organisation (FAO), told IPS.
The cost of black beans has also gone up, from 422 quetzals (52.70 dollars) per quintal in 2009 to 458 quetzals (57.20 dollars) in 2010, FAO reported.
Corn and black beans form the main part of the subsistence diet of millions of families in rural Guatemala, where 72 percent of the country's poverty is concentrated, according to official statistics.
Half of Guatemala's 14 million people live in poverty, and 17 percent live in extreme poverty, according to U.N. figures, although unofficial estimates put the proportion much higher.
García explained that the drought that hurt a large share of the country's crops in 2009 was then compounded by flooding caused by heavy rains in 2010, which in turn caused outbreaks of pests that ruined much of what was left of the subsistence crops of poor rural families.
The Ministry of Agriculture, Livestock and Food reported that from January to September 2010, 72,000 hectares of crops were lost, including 44,000 hectares (1.5 quintals) of corn and 25,000 quintals of beans.
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The volatility of grain prices is not only a problem in Guatemala, but a global challenge that mainly affects the poor.
"Recent bouts of extreme price volatility in global agricultural markets portend rising and more frequent threats to world food security," says the December 2010 FAO report "Price Volatility in Agricultural Markets".
Extreme weather events, heavier reliance on international trade to meet food needs, and a growing demand for food commodities from other sectors, especially energy, are undermining food security, the report adds.
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