BIOFUEL VS FOOD CRISIS VS PRICE HIKE

# 1

The new market for biofuels has raised grain prices. Corn is being used to produce energy and the market is anticipating hugely increased production in the coming decade. George Bush wants 15 per cent of American cars to run on biofuels by 2017, which will mean trebling maize production. Europe has a set a transport fuels target of 5.75 per cent from biofuels by 2010. As a result, the price of corn has begun to track that of oil quite closely.

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