20100904
africanews

MAPUTO (Reuters) - Mozambique police fired rubber bullets and teargas at demonstrators on Friday as rioting flared in the capital following two days of protests over high bread prices in which ten people were killed and hundreds wounded.

A 30 percent rise in the price of bread has caused widespread anger in one of the world's poorest countries, but the government has said it is helpless in the face of soaring global wheat prices.

Drought and fires in Russia, which had been the world's No. 3 wheat exporter, and a decision by the Russian government to extend a grain export ban until late 2011, have helped to boost benchmark U.S. wheat prices by more than 25 percent this year.

"Riots in Mozambique may just be a start as drought is expected to worsen in east Africa and dry heat reduces harvests in the U.S. and Russia," investment bank Fairfax said in a research note.

On the opposite side of Africa, in Cameroon, the government is threatening to close down businesses found breaking price agreements on food staples after consumer groups warned that recent market price hikes could trigger unrest.

After initial calm in Mozambique's capital Maputo, police said protesters began looting in the city's outskirts.

"Rioting has resumed on the outskirts of Maputo in Benfica and Hulene. They are trying to carry on looting. Police are firing rubber bullets and teargas to disperse them," police spokesman Arnaldo Chefo said.

Protests also broke out in the central town of Chimoio, 760 km (475 miles) north of Maputo, and at least six people were hurt after police opened fire on protesters, Portugal's Lusa news agency reported.