MANILA, Philippines - The era of cheap food for Asia is over as surging demand, supply problems and the growing production of biofuels will keep food prices high, the Asian Development Bank (ADB) warned.

In its latest Asia Economic Monitor report, the Manila-based lender warned that while previous food price surges were "cyclical and temporary", the higher prices now being seen were caused by permanent changes.

"This time, the impetus appears to come from persistently rising demand ... primarily from rapidly-growing emerging market economies, suggesting that there is a structural and permanent trend at work," the report said.

The ADB cited the average 7.4% growth in gross domestic product in Asia since 2000, saying it had created a "structural shift in demand, particularly for food".

University of the Philippines professor and former Budget Secretary Benjamin E. Diokno concurred, saying that "price pressures, especially on food, will not go away soon [as] oil demand will continue to be tight."

"We really have to increase local production especially in rice," he said. "The sustained growth of Asian countries like India and China, which resulted in [their] economic prosperity, has changed their preferences and greater demand on food."

Rolando T. Dy, executive director of the Center For Food and Agriculture of the University of the Asia and the Pacific, agreed that "we have to expand productivity." - BusinessWolrd