Rice price overshadows Southeast Asian trade talks

By Kevin Yao and Gde Anugrah Arka

NUSA DUA, Indonesia (Reuters) - Southeast Asian trade officials met on Friday for talks on how to respond to soaring rice prices, after U.S. President George W. Bush proposed $770 million (389 million pounds) in new U.S. food aid to stave off a global food crisis.

The weekend gathering of the 10-member Association of Southeast Asian Nations (ASEAN) on the resort island of Bali, famed for its shimmering green rice terraces, is also discussing efforts to build momentum for long-delayed world trade talks.

"Our minister will talk about the rice price. We share the general concern," said an official from the Philippines, which is the world's top rice importer, buying about 10 percent of its annual needs from overseas.

Asian rice prices have almost trebled this year and prices on the Chicago Board of Trade have risen more than 80 percent.

Bush, expressing concern as rocketing world food prices intensified unrest in poor countries, promised on Thursday that the United States would take the lead as hunger takes hold of a greater swathe of the developing world.

"With the new international funding I'm announcing ... we're sending a clear message to the world that America will lead the fight against hunger for years to come," Bush said.

The World Food Programme, which has issued an emergency appeal for $755 million to help feed 73 million hungry people in 80 countries, said on Friday it was not yet sure if the new U.S. aid would resolve its funding problems.

"We will have to wait to see how this money is going to be allocated to the different agencies responsible for responding to the impact of global food prices," said WFP spokesman Gregory Barrow. "But clearly this is a major step for all of us who are engaged in addressing this problem."