In China communist rulers say no to biofuels because of food price rises

Food price rises force a cut in biofuels
The Times, 12 June 2007

Jane Macartney in Beijing and Tim Reid in Washington

China's communist rulers announced a moratorium on the production of ethanol from corn and other food crops yesterday at the very time that Western leaders are rushing to embrace alternative food-based fuel technology.

Beijing's move underlines concerns that ethanol production is driving up rapidly the costs of corn and grain. It appears to reflect a growing reality about food-based alternative fuel: it is far more expensive both economically and environmentally, than Western politicians are likely to
admit...

...The rush to corn-based ethanol is causing food-price inflation in the US, as it increases the cost of corn grain feedstock and the availability of the crop for such staples as cereal and corn syrup. The ethanol boom has created mass planting of corn at the expense of other crops, which helps to drive up prices, too. Futures prices for corn in the US have nearly doubled in eight months....

FULL STORY at
http://www.timesonline.co.uk/tol/news/world/asia/china/article1917927.ece


Pundit's question: Why is it so popular in EU and the US. No lets see, who gets the benefits.....