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Growing Indian middle class is responsible for price rise, says Bush Print E-mail
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Saturday, 03 May 2008

WASHINGTON: Joining his top diplomat in suggesting that, the growing prosperity of India's large middle class is contributing to rising food prices around the world, the US President George W. Bush said that the development in India triggers increased demand for "better nutrition" which in turn leads to higher food prices.

 

The comments come close on the heels of US Secretary of State Condoleezza Rice's controversial statement that "apparent improvement" in the diets of people in India and China and consequent food export caps is among the causes of the current global food crisis.

The US President said: "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 in the countries, you know, 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," he said.

Bush also blamed 'weather-related problems' for the crisis. 'Some of the major producers of food have had drought. That's what happens. Weather patterns change. And so there's a lot of reasons why the price of food is high.'

 
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