Tuesday, April 22, 2008

Biofuels and food price

The food prices started to climb since last year. And some people are blaming the increased bio-fuels production for this. This is indeed one of the reasons in my opinion, especially since the production of bio-fuels is subsidized in some countries, which I think it's a mistake. The other reason is an increase in income in China and India, where people can afford to eat more. See an in depth analysis of the food crisis here. The good part of this is that some land that was not used in Romania because it was simple not profitable for farmers to cultivate them are now used. On my last trip to Constanta I saw lots of rapeseed (one of the plants the bio-diesel is made of) fields in bloom.
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