During the first three months of 2008, international nominal prices of all major food commodities reached their highest levels in nearly 50 years while prices in real terms were the highest in nearly 30 years (FAO 2008). In the short term, the impact of soaring food prices on households depends on the level of agricultural output and income levels which determine their purchasing power. Poor households who spend a large proportion of their income on staple food grains are likely to be the worst affected. Southern Sudan is heavily reliant on imported food products from the neighbouring countries. This makes Southern Sudan highly vulnerable to the current global food crisis. Therefore, it is crucial to analyse the effect of food prices in Southern Sudan and propose strategies to mitigate the impact. The purpose of this paper is to discuss the current situation and propose possible actions to deal with rising prices. The paper identifies more specifically what needs to be done in the immediate and in the long-term to tackle the problem of food crisis. The set of policy actions that should be pursued by the main players specifically the government are identified and recommended.