Biofuels to blame for 75 per cent increase in price of food

Biofuels have caused a 75 per cent increase in world food prices, a new report suggests. The rise is far greater than previous estimates including a US Government claim that plant-derived fuels contribute less than three per cent to food price hikes. According to reports last night, a confidential World Bank document indicates the true extent of the effect of biofuels on prices at a crucial time in the world's negotiations on biofuel policy. Rising food prices have been blamed for pushing 100 million people beneath the poverty line. The confidential report, based on a detailed economic analysis of the effect of biofuels, will put pressure on the American and European governments, which have turned to biofuels in attempts to reduce the greenhouse gases associated with fossil fuels and to reduce their reliance on oil imports.... [read full story]