The World Bank president, Robert Zoellick, yesterday unveiled a $1.2bn (£606m) rapid response fund to help developing countries deal with the food price crisis. Speaking from an African development meeting in Japan, Zoellick said the fund was part of a $2bn general increase in World Bank spending on agriculture.

Last week Saudi Arabia donated $500 million to the World Food Programme allowing it to meet its $755 million appeal to maintain its food aid operations.

The fast-track World Bank money would be available immediately, bypassing the normal project vetting procedures, and would help fund safety net support for the hungry, in the form of school feeding programmes or food-for-work schemes. Zoellick said priority would be given to pregnant women and infants, who were most vulnerable. The money would also be spent on seeds and fertiliser for farmers for the next few harvests.

Zoellick said the World Bank board was also planning to introduce risk management tools such as hedge funds and insurance schemes to protect poor countries and their farmers.

He also called for a review of subsidies and targets for biofuels, which are competing with food for land, investment and other resources.

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