Sunday, April 01, 2007

How biofuels push up food prices, and more on energy

apr 1, 2007

the downside of biofuels. food prices are going up because of diversion of food to make ethanol. recent nytimes story talks about how farmers are sowing record acreage of corn to meet need for ethanol.

much better: the economist's views on wood and solar. alas, these articles are premium material.

---------- Forwarded message ----------
From: Shahryar

How biofuels push up food prices
Swaminathan S Anklesaria Aiyar
[ 1 Apr, 2007 0325hrs ISTTIMES NEWS NETWORK ]

Critics accuse the government of surrendering to food inflation instead of combating it. The government has raised the effective procurement price (including bonus) of wheat by a whopping 21%, from Rs 700/quintal last year to Rs 850/quintal this year.

I think it is utterly wrong to pay Indian farmers less than the world price, even if it hurts urban consumers. In Chicago, the world's biggest grain exchange, wheat costs Rs 850/quintal. Inclusive of shipping costs, the landed price of imported wheat exceeds Rs 1000/quintal. The Indian farmer deserves as much as the Chicago price.

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