World food prices rising due to diversion of US grain: EPI
The diversion of US grain to produce ethanol to fuel cars has led to an increase in world food prices and the developing countries like India have already started paying for the rise in wheat prices.
By PTI |
WASHINGTON: The diversion of US grain to produce ethanol to fuel cars has led to an increase in world food prices and the developing countries like India have already started paying for the rise in wheat prices.
"Corn prices have doubled over the last year; wheat futures are trading at their highest level in 10 years and prices of rice are rising," The Earth Policy Institute (EPI) "By 2008, close to one third of the US grain harvest will be going to ethanol, reducing the amount available both for internal use and for export. The world's breadbasket is fast becoming the US fuel tank," the institute said.
"Unless Washington restricts the grain used for fuel, it faces not only a consumer revolt at supermarket checkout counters at home, but also spreading political instability in low- and middle-income countries on a scale that could disrupt global economic progress," it said.
"Creating chaos in world grain markets is totally unnecessary. Raising auto fuel efficiency standards 20 per cent would reduce oil use as much as converting the entire US grain harvest into ethanol," it added.
"Corn prices have doubled over the last year; wheat futures are trading at their highest level in 10 years and prices of rice are rising," The Earth Policy Institute (EPI) "By 2008, close to one third of the US grain harvest will be going to ethanol, reducing the amount available both for internal use and for export. The world's breadbasket is fast becoming the US fuel tank," the institute said.
"Unless Washington restricts the grain used for fuel, it faces not only a consumer revolt at supermarket checkout counters at home, but also spreading political instability in low- and middle-income countries on a scale that could disrupt global economic progress," it said.
"Creating chaos in world grain markets is totally unnecessary. Raising auto fuel efficiency standards 20 per cent would reduce oil use as much as converting the entire US grain harvest into ethanol," it added.
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