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Bernard English

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Friday, March 28, 2008

UN: Asia faces sharp food price inflation FROM Houston Chronicle

Across the region, price rises are driven in part by surging demand for food crops to make biofuels, such as sugarcane used for ethanol, the commission said.

"We do view biofuels as quite a worry for food production in the region," Banerjee said.

China has banned use of food crops for fuel and has imposed curbs on grain exports to increase domestic supplies and cool inflation.

Banerjee appealed to other governments to follow Beijing's example.

"We would advise governments to be very cautious about biofuels" until the region can take advantage of technology being developed to make fuel from non-food crops, he said.

On Wednesday, Indian Finance Minister P. Chidambaram said the use of food crops for biofuels is hurting the poor and called it "a sign of lopsided priorities of certain countries."

"It is outrageous and it must be condemned," he said in a lecture in Singapore.


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