April 30, 2008

Agricultural researcher calls for halt of grain-based biofuel production

The International Food Policy Research Institute (IFPRI) recently underscored the need to halt the use of grain-based feedstock in producing biofuel.

Joachim von Braun, head of the IFPRI, said that if a biofuel moratorium is issued this year, it would lead to a price decline in corn by about 20 percent and wheat by about 10 percent from 2009 to 2010.

Von Braun blames the rising food prices on a combination of factors, including high oil prices, growing population, change in world population dietary habits and unfavourable climate change. 

Furthermore, von Braun also pointed out the distinction between "good" and "bad" biofuels.  Waste-based and sugar cane-based biofuels can be very good, he said.

Biofuel subsidies in the US and the EU are an implicit tax on staple foods that has served to distort world food prices, he said. 

Developed countries were urged to eliminate biofuel subsidies and open their markets to sugar cane-based biofuel exporting countries like Brazil in the long run.

IFPRI is one of 15 centers supported by the Consultative Group on International Agricultural Research, an alliance of 64 governments, private foundations, and international and regional organizations.