Biofuel production pushes up food prices
Governments should abandon support for biofuel production, according to a report by 10 international organizations.Because these programs have caused food prices in the world to increase continuously in recent times.
The report by 10 organizations including the World Bank (WB), World Trade Organization (WTO), Food and Agriculture Organization of the United Nations (FAO), Organization for Economic Cooperation and Development (OECD), also reported growing opposition to biofuel targets and subsidies in Europe, Canada, India and the United States.
Jatropha fruits and seeds are used to produce biofuel. Illustration: Internet
“If oil prices are high and the value of agricultural products for energy production is higher than the corresponding level in food markets, crops will be diverted to provide feedstock for biofuel production, which will certainly increase food prices. In this correlation, changes in oil prices will disrupt or increase the risk of instability in agricultural markets,” the report noted.
The report was prepared at the request of the Group of 20 leading economies (G20). As planned, the G20 will meet on June 22 and 23 in Paris, France to discuss necessary policy issues, from increasing market transparency to limiting speculation in the commodity market.
During its G20 Presidency in 2011, France prioritized preventing food price instability and was determined to fight speculation on European commodity markets.
Biofuels have sparked a fierce “food versus fuel” debate since food prices hit record highs in 2007-2008. US ethanol producers say the build-up to the debate is unfair and overstates the impact of biofuels on world food prices.
Meanwhile, groups opposing biofuels assert that it is necessary to control the production of this type of fuel to combat deforestation, especially when the consumption of biofuels sometimes emits more CO2 than the use of fossil fuels.
According to statistics recorded in the report, biofuels "devoured" about 20% of the sugarcane crop, 9% of the total oilseed and coarse grain production in the world during 2007-2009.
According to VNA
