Rising food prices are a fast-growing global concern, partly fuelling the protests which toppled the rulers of Tunisia and Egypt in January and February, which in turn unleashed unrest in North Africa and the Middle East from Algeria to Yemen.
The U.N. Food and Agriculture Organisation's Food Price Index hit its second straight record last month, further passing peaks seen in 2008 when prices sparked riots in several countries, driven by rising grain costs and tighter supply.
David Hallam, Director of FAO's Trade and Market Division said further jumps in the oil price could have an impact on food markets, which have seen benchmark U.S. wheat prices surge 60 percent in the year to March.
"Unexpected oil price spikes could further exacerbate an already precarious situation in food markets," Hallam, said in a statement.
Oil prices recently hit 2-1/2 year highs, nearing records set in 2008, with markets spooked on concern that North African and Middle East unrest would choke key supplies.
Farmers depend on fuel to run agricultural machinery, while dry bulk shippers are heavy oil users, costs which are passed on to food buyers.
Spiralling shipping costs for commodities threaten to drive food inflation even higher as nations from Asia to the Middle East and Africa scramble for supplies, analysts say.
The FAO, which measures monthly price changes for a food basket composed of cereals, oilseeds, dairy, meat and sugar, averaged 236 points in February, the record in real and nominal terms, up 2.2 percent from January's record and rising for the eighth month in a row.
The Rome-based FAO has said global supply of main agricultural commodities would remain tight until new harvests in key producing countries and warned food prices could climb even higher.
FAO said in Thursday's statement it expected a tightening of the global cereal supply and demand balance in 2010/11.
"In the face of growing demand and a decline in world cereal production in 2010, global cereal stocks this year are expected to fall sharply because of a decline in inventories of wheat and coarse grains, " the agency said.
FAO said it forecasts global wheat production to increase by around 3 percent in 2011.
The U.N. Food and Agriculture Organisation's Food Price Index hit its second straight record last month, further passing peaks seen in 2008 when prices sparked riots in several countries, driven by rising grain costs and tighter supply.
David Hallam, Director of FAO's Trade and Market Division said further jumps in the oil price could have an impact on food markets, which have seen benchmark U.S. wheat prices surge 60 percent in the year to March.
"Unexpected oil price spikes could further exacerbate an already precarious situation in food markets," Hallam, said in a statement.
Oil prices recently hit 2-1/2 year highs, nearing records set in 2008, with markets spooked on concern that North African and Middle East unrest would choke key supplies.
Farmers depend on fuel to run agricultural machinery, while dry bulk shippers are heavy oil users, costs which are passed on to food buyers.
Spiralling shipping costs for commodities threaten to drive food inflation even higher as nations from Asia to the Middle East and Africa scramble for supplies, analysts say.
The FAO, which measures monthly price changes for a food basket composed of cereals, oilseeds, dairy, meat and sugar, averaged 236 points in February, the record in real and nominal terms, up 2.2 percent from January's record and rising for the eighth month in a row.
The Rome-based FAO has said global supply of main agricultural commodities would remain tight until new harvests in key producing countries and warned food prices could climb even higher.
FAO said in Thursday's statement it expected a tightening of the global cereal supply and demand balance in 2010/11.
"In the face of growing demand and a decline in world cereal production in 2010, global cereal stocks this year are expected to fall sharply because of a decline in inventories of wheat and coarse grains, " the agency said.
FAO said it forecasts global wheat production to increase by around 3 percent in 2011.
Muammar Gaddafi's forces struck at rebel control of oil export hubs in Libya's east for a second day on Thursday as Arab states weighed a plan to end turmoil Washington said could make the nation "a giant Somalia."
A leader of the uprising against Gaddafi's 41-year-old rule said he would reject any proposal for talks with Gaddafi to end the conflict in the world's 12th largest oil exporting nation.
In The Hague, International Criminal Court prosecutor Luis Moreno-Ocampo said Gaddafi and members of his inner circle could be investigated for alleged crimes committed against civilians by security forces since the uprising broke out in mid-February.
Italy said it was preparing for a potential mass exodus of migrants escaping turmoil in North Africa after a rise in flows of illegal immigrants from Tunisia, the initial destination for tens of thousands who have fled violence in Libya.
Save The Children and Medecins Sans Frontieres said they were struggling to get medicines and care to Libya's needy, with gunmen blocking roads and civilians too scared to seek help.
Witnesses said a warplane bombed the eastern oil terminal town of Brega, a day after troops loyal to Gaddafi launched a ground and air attack on the town that was repulsed by rebels spearheading a popular revolt against his four-decade-old rule.
The rebels, armed with rocket launchers, anti-aircraft guns and tanks, called on Wednesday for U.N.-backed air strikes on foreign mercenaries it said were fighting for Gaddafi.
Opposition activists called for a no-fly zone, echoing a demand by Libya's deputy U.N. envoy, who now opposes Gaddafi.
"Bring Bush! Make a no fly zone, bomb the planes," shouted soldier-turned-rebel Nasr Ali, referring to a no-fly zone imposed on Iraq in 1991 by then U.S. President George Bush.
But perhaps mindful of a warning by Gaddafi that foreign intervention could cause "another Vietnam," Western officials expressed caution about any sort of military involvement including the imposition of a no-fly zone.
A rebel officer said government air strikes targeted the airport of Brega and a rebel position in the nearby town of Ajdabiyah, referring to two rebel-held locations.
Opposition soldiers also said troops loyal to Gaddafi had been pushed back to Ras Lanuf, home to another major oil terminal and 600 km (375 miles) east of Tripoli.
"Gaddafi's forces are in Ras Lanuf," Mohammed al-Maghrabi, a rebel volunteer, told Reuters, echoing comments by others.
In an angry scene at al-Ugayla, east of Ras Lanuf, a rebel shouted inches from the face of a captured young African and alleged mercenary: "You were carrying guns, yes or no? You were with Gaddafi's brigades yes or no?"
The silent youth was shoved onto his knees into the dirt. A man held a pistol close to the boy's face before a reporter protested and told the man that the rebels were not judges.
Libyan government spokesman Musa Ibrahim told BBC Radio the news from The Hague was "close to a joke".
"No fact-finding mission has been sent to Libya. No diplomats, no ministers, no NGOs or organisations of any type were sent to Libya to check the facts ... No one can be sent to prison based on media reports," he said.
The rebels, armed with rocket launchers, anti-aircraft guns and tanks, called on Wednesday for U.N.-backed air strikes on Foreign mercenaries it said were fighting for Gaddafi.
Opposition activists called for a no-fly zone, echoing a demand by Libya's deputy U.N. envoy, who now opposes Gaddafi.
"Bring Bush! Make a no fly zone, bomb the planes," shouted soldier-turned-rebel Nasr Ali, referring to a no-fly zone imposed on Iraq in 1991 by then U.S. President George Bush.
Italy said it was preparing for a potential mass exodus of migrants escaping turmoil in North Africa after a rise in flows of illegal immigrants from Tunisia, the initial destination for tens of thousands who have fled violence in Libya.
Save The Children and Medecins Sans Frontieres said they were struggling to get medicines and care to Libya's needy, with gunmen blocking roads and civilians too scared to seek help.
As the struggle on the ground intensified, Arab League Secretary-General Amr Moussa said a peace plan for Libya from Venezuela's President Hugo Chavez was under consideration.
"We have been informed of President Chavez's plan but it is still under consideration," Moussa told Reuters on Thursday. "We consulted several leaders yesterday," he said.
Moussa said he had not agreed to the plan and did not know whether Gaddafi had accepted it.
Oil fell on news of the plan. Brent crude fell more than $3 to $113.09 per barrel as investors eyed a possible deal brokered by Chavez. It later edged up to $114.78.
Chavez's plan would involve a commission from Latin America, Europe and the Middle East trying to reach a negotiated outcome between the Libyan leader and rebel forces.
Information Minister Andres Izarra told Reuters that Venezuela was carrying out an intense agenda of contacts to crystalise the proposal, adding: "Those contacts continue today ... Venezuela's commitment is to peace."
Al Jazeera television said the chairman of the rebels' National Libyan Council, Mustafa Abdel Jalil, rejected any talks with Gaddafi.
At a meeting with adoring loyalists in Tripoli on Wednesday, Gaddafi slammed "armed gangsters" he said were behind the unrest as part of a plot to colonise Libya and grab its oil, and said if foreigners intervened "another Vietnam will begin".
The Libyan government has tried to persuade people in Tripoli that life continues as normal, but the crisis was affecting everyday life. There were queues outside banks and residents said food prices had gone up, while the street value of the Libyan dinar had fallen dramatically against the dollar.
In the opposition stronghhold of Benghazi, men of all ages gathered next to the courthouse engaged in fierce debates, enjoying their new-found freedom of speech.
"We must go to Tripoli and get rid of Gaddafi," shouted one, to murmurs of approval from those around him.
"But we have only our shirts to protect us from the cannon," said Ahmed el Sherif, 60, standing on the edge of the group.
The Dutch Defence Ministry said Libyan authorities had arrested three Dutch soldiers on Sunday when they tried to evacuate a Dutch citizen from Sirte, east of Tripoli.
Libya's deputy ambassador to the United Nations, one of the first Libyan diplomats to denounce Gaddafi and defect, said the United Nations may back a resolution for a no-fly zone if the rebel's leadership council requested it officially.
The U.S. government is cautious about imposing a no-fly zone, stressing the diplomatic and military risks involved, but has moved warships into the Mediterranean.
Any sort of foreign military involvement in Arab countries is an awkward subject for Western nations keenly aware that Iraq was plunged into years of bloodletting and al Qaeda violence after a 2003 U.S.-led invasion toppled Saddam Hussein.
(Additional reporting by Yvonne Bell and Chris Helgren in Tripoli, Tom Pfeiffer, Alexander Dziadosz in Benghazi, Yannis Behrakis and Douglas Hamilton; Christian Lowe and Hamid Ould Ahmed in Algiers, Souhail Karam and Marie-Louise Gumuchian in Rabat; Aaron Gray-Block in Amsterdam, Sarah Mikhail in Cairo: Writing by William Maclean; Editing by Giles Elgood)
A leader of the uprising against Gaddafi's 41-year-old rule said he would reject any proposal for talks with Gaddafi to end the conflict in the world's 12th largest oil exporting nation.
In The Hague, International Criminal Court prosecutor Luis Moreno-Ocampo said Gaddafi and members of his inner circle could be investigated for alleged crimes committed against civilians by security forces since the uprising broke out in mid-February.
Italy said it was preparing for a potential mass exodus of migrants escaping turmoil in North Africa after a rise in flows of illegal immigrants from Tunisia, the initial destination for tens of thousands who have fled violence in Libya.
Save The Children and Medecins Sans Frontieres said they were struggling to get medicines and care to Libya's needy, with gunmen blocking roads and civilians too scared to seek help.
Witnesses said a warplane bombed the eastern oil terminal town of Brega, a day after troops loyal to Gaddafi launched a ground and air attack on the town that was repulsed by rebels spearheading a popular revolt against his four-decade-old rule.
The rebels, armed with rocket launchers, anti-aircraft guns and tanks, called on Wednesday for U.N.-backed air strikes on foreign mercenaries it said were fighting for Gaddafi.
Opposition activists called for a no-fly zone, echoing a demand by Libya's deputy U.N. envoy, who now opposes Gaddafi.
"Bring Bush! Make a no fly zone, bomb the planes," shouted soldier-turned-rebel Nasr Ali, referring to a no-fly zone imposed on Iraq in 1991 by then U.S. President George Bush.
But perhaps mindful of a warning by Gaddafi that foreign intervention could cause "another Vietnam," Western officials expressed caution about any sort of military involvement including the imposition of a no-fly zone.
A rebel officer said government air strikes targeted the airport of Brega and a rebel position in the nearby town of Ajdabiyah, referring to two rebel-held locations.
Opposition soldiers also said troops loyal to Gaddafi had been pushed back to Ras Lanuf, home to another major oil terminal and 600 km (375 miles) east of Tripoli.
"Gaddafi's forces are in Ras Lanuf," Mohammed al-Maghrabi, a rebel volunteer, told Reuters, echoing comments by others.
In an angry scene at al-Ugayla, east of Ras Lanuf, a rebel shouted inches from the face of a captured young African and alleged mercenary: "You were carrying guns, yes or no? You were with Gaddafi's brigades yes or no?"
The silent youth was shoved onto his knees into the dirt. A man held a pistol close to the boy's face before a reporter protested and told the man that the rebels were not judges.
Libyan government spokesman Musa Ibrahim told BBC Radio the news from The Hague was "close to a joke".
"No fact-finding mission has been sent to Libya. No diplomats, no ministers, no NGOs or organisations of any type were sent to Libya to check the facts ... No one can be sent to prison based on media reports," he said.
The rebels, armed with rocket launchers, anti-aircraft guns and tanks, called on Wednesday for U.N.-backed air strikes on Foreign mercenaries it said were fighting for Gaddafi.
Opposition activists called for a no-fly zone, echoing a demand by Libya's deputy U.N. envoy, who now opposes Gaddafi.
"Bring Bush! Make a no fly zone, bomb the planes," shouted soldier-turned-rebel Nasr Ali, referring to a no-fly zone imposed on Iraq in 1991 by then U.S. President George Bush.
Italy said it was preparing for a potential mass exodus of migrants escaping turmoil in North Africa after a rise in flows of illegal immigrants from Tunisia, the initial destination for tens of thousands who have fled violence in Libya.
Save The Children and Medecins Sans Frontieres said they were struggling to get medicines and care to Libya's needy, with gunmen blocking roads and civilians too scared to seek help.
As the struggle on the ground intensified, Arab League Secretary-General Amr Moussa said a peace plan for Libya from Venezuela's President Hugo Chavez was under consideration.
"We have been informed of President Chavez's plan but it is still under consideration," Moussa told Reuters on Thursday. "We consulted several leaders yesterday," he said.
Moussa said he had not agreed to the plan and did not know whether Gaddafi had accepted it.
Oil fell on news of the plan. Brent crude fell more than $3 to $113.09 per barrel as investors eyed a possible deal brokered by Chavez. It later edged up to $114.78.
Chavez's plan would involve a commission from Latin America, Europe and the Middle East trying to reach a negotiated outcome between the Libyan leader and rebel forces.
Information Minister Andres Izarra told Reuters that Venezuela was carrying out an intense agenda of contacts to crystalise the proposal, adding: "Those contacts continue today ... Venezuela's commitment is to peace."
Al Jazeera television said the chairman of the rebels' National Libyan Council, Mustafa Abdel Jalil, rejected any talks with Gaddafi.
At a meeting with adoring loyalists in Tripoli on Wednesday, Gaddafi slammed "armed gangsters" he said were behind the unrest as part of a plot to colonise Libya and grab its oil, and said if foreigners intervened "another Vietnam will begin".
The Libyan government has tried to persuade people in Tripoli that life continues as normal, but the crisis was affecting everyday life. There were queues outside banks and residents said food prices had gone up, while the street value of the Libyan dinar had fallen dramatically against the dollar.
In the opposition stronghhold of Benghazi, men of all ages gathered next to the courthouse engaged in fierce debates, enjoying their new-found freedom of speech.
"We must go to Tripoli and get rid of Gaddafi," shouted one, to murmurs of approval from those around him.
"But we have only our shirts to protect us from the cannon," said Ahmed el Sherif, 60, standing on the edge of the group.
The Dutch Defence Ministry said Libyan authorities had arrested three Dutch soldiers on Sunday when they tried to evacuate a Dutch citizen from Sirte, east of Tripoli.
Libya's deputy ambassador to the United Nations, one of the first Libyan diplomats to denounce Gaddafi and defect, said the United Nations may back a resolution for a no-fly zone if the rebel's leadership council requested it officially.
The U.S. government is cautious about imposing a no-fly zone, stressing the diplomatic and military risks involved, but has moved warships into the Mediterranean.
Any sort of foreign military involvement in Arab countries is an awkward subject for Western nations keenly aware that Iraq was plunged into years of bloodletting and al Qaeda violence after a 2003 U.S.-led invasion toppled Saddam Hussein.
(Additional reporting by Yvonne Bell and Chris Helgren in Tripoli, Tom Pfeiffer, Alexander Dziadosz in Benghazi, Yannis Behrakis and Douglas Hamilton; Christian Lowe and Hamid Ould Ahmed in Algiers, Souhail Karam and Marie-Louise Gumuchian in Rabat; Aaron Gray-Block in Amsterdam, Sarah Mikhail in Cairo: Writing by William Maclean; Editing by Giles Elgood)
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