The head of the UN food agency on Monday urged the use of vouchers to boost food production in poor countries as food and fuel prices continue to soar. The Food and Agriculture Organisation will provide 17 million dollars (12 million euros) "from our own resources, and naturally expect bilateral and multilateral support" to expand a voucher programme, Director General Jacques Diouf told a news conference.
"Empowering beneficiaries with vouchers to increase purchasing power makes sense (only) if the private sector is able to respond," said the head of the Rome-based agency. The FAO could "play a catalytic and policy role" to encourage the use of vouchers to help farmers to buy seed, fertiliser and other supplies, he said.
Vouchers avoid "cumbersome procurement processes," and help a "greater number of recipients... for the same amount of resources," he said. The Senegalese FAO chief noted that the FAO had been successful in distributing vouchers in eastern and southern Africa. An FAO report issued this month found that cereal prices remain high despite record production this year, affecting poor countries the most.
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