Tuesday, October 19, 2010

How biofuels push up food prices and affect the food chain.

The government has raised the effective procurement price of wheat by a whopping 21% from Rs 700 Rs 850 this year.why is wheat so costly.The EU has mandated that bio fuels should account for 5.75% of transport fuel by 2010. If produced entirely from European crops this will require the diversion of 17 million hectares from food to bio fuel crops.