Delegates to the UN summit on the world food crisis today began hammering out an emergency plan to reduce hunger and help Third World farmers despite often testy disagreement behind the scenes over the future of biofuels.

The three-day summit, convened by the UN Food and Agriculture Organisation (FAO), which is based in Rome, ends tomorrow, when the final communique will be issued outlining both short-term and long-term solutions.

A draft declaration vows to eliminate hunger and secure "food for all, today and tomorrow". The leaders undertake to "stimulate food production and increase investment in agriculture" while "addressing obstacles to food access and using the planet's resources sustainably for present and future generations".

The draft document calls for a reduction in trade barriers and food export restrictions, emergency food aid, increased crop yields and guidelines on the use of biofuels.

FAO officials said 850 million people already faced famine or malnutrition, and rising food and fuel prices would push that figure over the one billion mark, with the risk of further riots and instability in affected nations. Prices of staples such as rice, corn and wheat have soared.

The UN World Food Programme (WFP) said it was rolling out an additional US$1.2 billion in food assistance to help tens of millions of people in more than 60 nations hardest hit by the food crisis.

"With soaring food and fuel prices, hunger is on the march and we must act now," Josette Sheeran, Executive Director of WFP, told the summit.

She said that WFP was "helping the world to weather the storm" by tripling the number of people who receive food in Haiti, doubling those who will receive food in Afghanistan, and delivering assistance to people in Somalia, Ethiopia and Kenya. "We have mobilised our 10,000 employees and every dollar and Euro given to us to reach as many hungry people as we can at this critical time," she said.

The first day of the summit was dominated by controversy over the presence of the President Ahmadinejad of Iran and President Mugabe of Zimbabwe. Today, however, delegates got down to the nitty-gritty of the food crisis, with the United States and Brazil - the world's largest producer of sugar-cane ethanol - defending the diversion of crops for energy in the face of growing criticism.

The US plans to use 25 per cent of its corn crop for ethanol production by 2022, and the European Union aims to obtain 10% of its car fuel from bio-energy by 2020. The US Agriculture Secretary, Ed Schafer, insisted that "the use of sustainable biofuels can increase energy security, foster economic development especially in rural areas and reduce greenhouse gas emissions without weighing heavily on food prices."

He said the US was "deeply concerned by the current crisis.....We are now projecting to spend nearly five billion dollars in 2008 and 2009 to fight global hunger".

But Jacques Diouf, director general of the FAO, said: "Nobody understands how $11-12 billion-a-year subsidies in 2006 and protective tariff polices have had the effect of diverting 100m tonnes of cereals from human consumption, mostly to satisfy a thirst for fuel for vehicles."

Mr Schafer responded that biofuels had contributed under 3 per cent to food price increases. However FAO officials said biofuels accounted for 59 per cent of the increase in global use of coarse grains and wheat between 2005-2007, and 56 per cent of the increase in vegetable oils. The International Monetary Fund (IMF) estimates that biofuels are responsible for up to 30 per cent of the price rises overall.

Luiz Inácio Lula da Silva, the President of Brazil, accused critics of biofuels of hypocrisy. "It offends me to see fingers pointed at biofuels, which produce clean energy, when those fingers are soiled with oil and coal," he said. "It is frightening to see attempts to draw a cause and effect relationship between biofuels and the rise of food prices".

But he took a swipe at the US version of biofuel, saying that corn-based ethanol was less efficient than fuel produced with sugar cane, and could only compete "when it is shored up with subsidies and shielded behind tariffs". Yasuo Fukuda, the Japanese Prime Minister, added: "In some cases, biofuel production is in competition with food supply.....We need to ensure that biofuel production is sustainable."

The Rome summit will be followed by the G8 summit in Japan next month and the final stages of the stalled World Trade Organisation (WTO) Doha round of talks on global trade. Pascal Lamy, the head of WTO, said a Doha deal "would reduce the trade-distorting subsidies that have stymied the developing world's production capacity".

Ban Ki Moon, the UN Secretary-General, said "Nothing is more degrading than hunger, especially when man-made". He said the "global price tag" to overcome the food crisis would be $15 billion to $20 billion a year. Food supplies would have to rise 50 per cent by the year 2030 to meet demand.

Douglas Alexander, Britain's International Development Secretary, said that Western farm subsidies were also responsible for food price rises. "It is unacceptable that rich countries still subsidise farming by $1 billion a day, costing poor farmers in developing countries an estimated $100 billion a year in lost income," he said.

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