The United Nations Food and Agriculture Organization is downplaying fears of a global food crisis despite rioting and protests over the rising cost of food.

A widespread drought in Russia, the world's No. 3 wheat exporter, is blamed for a drop in wheat production which has led to spiralling worldwide grain prices.

Fading sunflowers droop in a field in Voronezh region, some 415 kilometres south of Moscow, after weeks of searing heat and practically no rain. A severe drought destroyed one-fifth of Russia's wheat crop.Fading sunflowers droop in a field in Voronezh region, some 415 kilometres south of Moscow, after weeks of searing heat and practically no rain. A severe drought destroyed one-fifth of Russia's wheat crop. (Mikhail Metzel/Associated Press)Flooding in Pakistan, a severe drought in Syria, and traders speculating on food prices have also contributed to a food shortage and higher prices.

The assistant director general of economic and social development at the UN says what the world is seeing now is market volatility and turbulence, not a crisis.

"The elements for a crisis do not appear to be there. But in the years ahead we'll probably be seeing more of the turbulence we're experiencing now because markets are set to become more volatile," said Hafez Ghanem.

Among the factors he cites for that volatility is climate change.

'There is a lot of uncertainty about the evolving supply and demand situation'—Hafez Ghanem, United Nations

Ghanem suggests the G20 should take a lead by improving regulation of markets, ensuring greater market transparency, and in establishing an appropriate level for emergency food stocks.

The Food and Agriculture Organization has called a meeting for Sept. 24 in Rome to discuss ways to improve worldwide food distribution.

"In the current situation there is a lot of uncertainty about the evolving supply and demand situation and measures different countries are taking to limit price variability," Ghanem explained. "The meeting will bring policymakers and experts together to exchange information and discuss the current situation face to face."

Mozambique reverses price increases

Meanwhile, Mozambique's government is backtracking on a 20 per cent increase in bread prices.

The nation was rocked by a week of rioting that left 13 people dead after the price hike was announced.

Mozambique is one of many nations which relies heavily on food imports. The African nation grows only 30 per cent of the wheat it needs.

With files from The Associated Press