April 11, 2007

China's corn devoted for ethanol goes way over the limit

Industrial demand for corn, increasing due to rising ethanol production, has resulted in 16 million tonnes being converted to biofuel, well over the official ceiling of 3 million , the official Xinhua news agency reported.

The ministry fears that the increasing use of corn for ethanol would exert upward pressure on prices, Xinhua said. China's current corn production is at 144 million tonnes of corn a year and aims to bump it up to 150 million tonnes by 2010.

About 68 percent of corn produced is used for animal feed and 25 percent in industrial production, mainly for ethanol and starch. Seven percent is consumed as food, the agency said.