The global financial crisis could leave 16 million children malnourished by 2010, the International Food Policy Research Institute (IFPRI) said.

According to IFPRI director-general Joachim von Braun, a world recession could constrict agricultural investment and productivity, in line with reduced economic growth. He added that such would have a lasting effect on emerging economies.

In turn, reduced growth, investment and productivity would eventually lead to increases in the prices of basic staples. In a study, IFPRI said that by 2020, rice prices would rise by 13 percent, wheat by 15 percent and maize by 27 percent, leaving 16 million more children malnourished.

However, IFPRI said developing countries can avert these dire consequences by spending more on research and development, irrigation and productive services in agriculture.

If economic growth is reduced but investments in agriculture and productivity are maintained, the study found that grain would be more affordable, per capita calorie consumption would be higher, and there would be significantly fewer malnourished children.

"More effort is needed to successfully resolve the food price crisis, build resistance to future challenges, and reduce poverty and hunger," Von Braun said.

In 2007, the Food and Agriculture Organization (FAO) has estimated the number of undernourished people rising to 923 million, largely owing to the food price crisis. The number likely increased even further this year as prices continued to rise with the financial crisis.