Food price rise due to demand for bio-fuel

Bio-fuels have already contributed upto 30 per cent to the global rise in food prices and its increasing demand has pushed more than 30 million people into poverty, according to the report by Oxfam International which was released here today.     

The demand for bio-fuels by rich countries is not only contributing to food insecurity and inflation but it is going to hit the poor countries hardest endangering the livelihood of at least 290 million people by creating food shortage, the report named 'Another Inconvenient Truth' said.     

 

"Bio-fuel policies are actually helping to accelerate climate change and deepen poverty and hunger.

Rich countries' demands for more bio-fuel in their transport fuels are causing spiralling production and food inflation," author of the report Rob Bailey said.     

He estimated that the current bio-fuel rush, if it continues, could result in an extra 600 million hungry people by 2025 undermining the Millennium Development Goal of eradicating poverty and hunger.     

The demand for bio-fuels is affecting the climate in another way also. To meet the spiralling demand for bio-fuel in rich countries like EU, US and Canada some countries are expanding their production for bio-fuel.     

The increased production means taking over of agricultural land and forcing farming to expand into lands that are important carbon sinks, like forests and wetlands.

This triggers the release of carbon from soil and vegetation that will take decades to repay.