Thursday, August 5, 2010
Food prices vs biofuel
The food prices across the globe hit a record high,and show the signs that they will go on rising this year too as well as in future .In fact ,expert are says that year of cheap food over and the world economy has get used to it .The reason behind the spurt in food prices is certainly not bad harvest,but turning too many foodgrain into fuel.More over the increasing in demand of the biomass energy is also diverting agricultural production away from food crops,leading to mass starvation in poor countries.
The skyrocketing oil prices are driving the demand for biofuels. The increasing demand of biofuels indicate that the prices of the basic staples food such as corn is no longer based on its requirement as a food ,but also a fuel.Accordingly the food market is under going a major change,and there is an unexpected rise in the prices of food grain such as wheat,corn,maize and soybeans around the world.
Biofuels are commercial crops and here the return are much higher than the tradition food crops.
Regular cultivation of the food grain also reduce the productivity of the field so production of the biofuels also help to get achieve the recycle of the food grains.
Western countries are highest suppliers of food grain the world market.Canada,US and Australia are the main source.Asian countries produce huge food grain but most part of the production consumed by themselves.So, very low portion go to the world market which not affect the world trade of the food grain.
It is the problem for all countries so it is important to think on this to get the solution.