Worldwide there is increasing demand. There turns out to be prosperity in developing world, which is good. It's going to be good for you because you'll be selling products into countries -- big countries perhaps -- and it's hard to sell products into countries that aren't prosperous. In other words, the more prosperous the world is, the more opportunity there is.
It also, however, increases demand. So, for example, just as an interesting thought for you, there are 350 million people in India who are classified as middle class. That's bigger than America. Their middle class is larger than our entire population. And when you start getting wealth, you start demanding better nutrition and better food. And so demand is high, and that causes the price to go up.
There is no blaming going on here at all. Moreover, above two paragraphs are a part of a whole section on various reasons behind rising food prices. The above statement should be taken as a compliment rather than getting pissed off. At the end of the day, sound economic reasoning is not blaming!
Its far easier for our politician babus to bug Manmohan Singh to "respond" to Bush than for them to take more significant steps to increase farmland productivity and storage/distribution efficiency which are currently at pathetic low levels. That Bush is just echoing what economists are saying does not matter to them.
Do check this article out
Did Condoleeza Rice blame India/China?
Gives a nice expose of our desi commies and hypocritical socialists like Congress and BJP who are always looking for a opportunity for US baiting for vote politics. Just to give some background, Condoleeza Rice was asked a question at the Country Directors Conference of Peace Corps about the increasing foodgrain prices. She pointed her four reasons for this and here is her second reason.
Secondly, we obviously have to look at places where production seems to be declining and declining to the point that people are actually putting export caps on the amount of food. Now, some of that is not so much declining production as apparently improvement in the diets of people, for instance, in China and India, and then pressures to keep food inside the country. So, that’s another element that we have to look at.Again, there is no blaming going on here. But that does not stop our media from making statements like Blame it on the poor.