Bio-Fuels increased world food prices by 75 % - World Bank
‘Contradicting US claims, bio fuels, mostly made out of grains which
otherwise consumed by humans, have shot up food prices by 75 per cent,
according to a confidential World Bank report.
In an exclusive lead story by Aditya Chakrabortty , Britain’s
Guardian newspaper said “bio-fuels have forced global food prices up by
75% -far more than previously estimated” according to this report.
The story revealed the newspaper has obtained this unpublished report
and the damning assessment is based on the most detailed analysis of the
crisis so far, carried out by an internationally respected economist at
the global financial body.
The report, the ‘Guardian’ said , emphatically , contradicts US
claims that bio fuels has caused only 3% increase in food prices.
Third world countries like Sri Lanka including other Afro Asian
countries are the most affected due to soaring prices in food. Rising
food prices have left 100 million people in the world below the poverty
level and have sparked food riots from Egypt to Bangladesh.
Although these facts were known last April, the World Bank did not
publish the statistics to avoid embarrassment to US President George
Bush, the Guardian charged.
The revealing report has been published in the ‘Guardian’ newspaper
at a time very critical negotiations are taking place about bio fuel
policies between nations since G8 industrialised countries are meeting
in Hokkaido, Japan where they will discuss the food crisis.
Meanwhile, the Guardian newspaper said the British government has
already prepared its own report on bio fuels and although it was to be
published last week it is not yet out. The World Bank report said, the
production of bio-fuels has contributed to the food prices in three main
“First it has diverted grain away from food to fuel, with over a
third of US corn now used to produce ethanol and of half of vegetable
oils in the EU going towards the production of bio-diesel. Second,
farmers have been encouraged to set land aside for bio-fuel production.
Third it has sparked financial speculation in grains and driven prices
- Asian Tribune