Monday, April 14, 2008

Are biofuels the cause of higher food prices?

Both the World Bank and the IMF have spoken on the crisis facing poorer countries due to the huge increases in basic food prices.  But no-one seems to know why the prices have increased so rapidly in the past three years.  If they do they are not telling.  Surely they do know, but perhaps they don't want to admit they know.

My guess is that too much valuable crop growing land has been turned over to lucrative biofuel farming.  While that may not directly explain the short supply of rice it certainly can explain why there is less grain in general, forcing many to turn to rice and thus driving up its prices.

The policy of growing biofuel needs to be questioned.  Urgently.