TAIPEI: Taiwan will cut import tariffs on some food ingredients by as much as half in a bid to preserve price stability as surging global food prices draw the attention of policymakers worldwide.
The finance ministry said that it will cut tariffs on wheat, wheat flour and cassava starch by 50 percent and those on milk powder by 25 percent. The cuts will stay in effect for six months.
The UN's Food and Agriculture Organisation said earlier this month that global food prices reached their highest levels since it began keeping records in 1990 and that grain prices could climb further due to adverse weather patterns.
The surge has raised the spectre of the social unrest seen after food price volatility in 2008.
French President Nicolas Sarkozy targeted commodity price volatility as he laid out plans for France's presidency of the G20 group of leading economies, saying commodity shortages have fuelled speculation.
Taiwan, a net importer of foodstuffs, has already decided to cut some tariffs on corn flour and soy meal by half for six months.
It has also decided not to raise natural gas prices in January and February, while petrol prices can be lowered but not raised for the Lunar New Year period.
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