Tuesday, July 22, 2008

Bio Fuels Blamed for Food Inflation

With food prices continuing to rise, the OECD launched a report to examine why prices are rising.
One of their key findings was the increased use of crops for biofuels pushing up prices. This growth in biofuels is often promoted by government subsidies, especially in the US.

The report discounted:
  • the importance of rising demand from China and India
  • and the role of speculation

Report by Stefan Tangermann OECD on why food prices are rising


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