Use of grain for producing biofuels has increased the price of food like soybean and corn in poor countries, and also pushed up the livestock food and substitution crops’ prices.
As per IMF (International Monetary Fund), the growing dependence on the grain as a chief source for fuel all over the world is likely to push up the food prices in the poor countries. TheAssociatedPress published this news.
The International Monetary Fund said, “The use of food as a source of fuel may have serious implications for the demand for food if the expansion of biofuels continues”. This warning by International Monetary Fund may further intensify the food-versus-fuel issue. This has brought the supporters of ethanol and development researchers and other people, who are complaining for the rising price of staple food products because of using grain for producing fuel, against each other.
Also, the high demand for biofuels in EU and the US has increased the prices of soybean, corn, and substitution crops. It has also pushed up the cost of feed for livestock. Other factors that have helped in increasing the prices are animal diseases, for example in China, and poor harvests in various countries.
Mostly, the rapid development and advancement made by many countries around the world in the automobile or the industrial sector have increased the demand for biofuels. Also, because the biofuels are anti-polluting, there is increasing demand for ethanol.
The International Monetary Fund also revealed that the US usurped Brazil’s position as the world’s largest producer of ethanol, and that the sugarcane-based ethanol of Brazil is less costly to produce than that of corn-based ethanol and gasoline. It further said that the high food prices could be lowered if EU and the US reduce the barriers levied on the imports of biofuels from countries like Brazil “where production is cheaper, more efficient and environmentally less damaging”.
As per a Research Expert at RNCOS, “There has been consistent increase in the global food sector. But high demand for biofuels in a number of countries is worrying the industry. The energy industry is also in doubt as to increase or decrease the biofuel production. But both the global energy and global food industries have to bring out solution in such a way that all the countries are benefited”.
Related Market Research Reports:
Global Biofuel Market Analysis
US Biofuel Market Analysis
Asia Pacific Biofuel Market Forecast
