Azerbaijan, Baku, 7 June /corr. Trend E.Ismaylov / The U.S. Secretary of Commerce, Carlos M. Gutierrez, considers it necessary to cease providing subsidies for biofuel production in order to reduce prices for agricultural products. "Increase in foodstuff prices is a problem," Gutierrez said, giving a speech during XII St. Petersburg International Economic Forum on 7 June.
Earlier the UN Secretary General, Ban Ki-moon, said that the price increase for foodstuffs may bring damages to the global economic growth and security. According to him, it jeopardizes the results of the global combat against poverty.
In addition, in his speech, Gutierrez highlighted the problem of monopoly in world markets. "Response to monopoly should be policy of monopsony. If we do not find any reserve technologies, we will appear on the brink of catastrophe," US Secretary of Commerce said.
Homi Kharas, chief expert on global economy of U.S. Institute of Brookings, told Trend that the large linkage being recorded between the worldwide food and energy markets should be diminished. The linkage of the markets is being observed both with regards to proposal (due to importance of intensive transport, distribution and use of fertilizers) and demand (as a result of using foodstuffs as biofuel which become more efficient).