Bio fuels or food habits

Friday, May 09, 2008

Bio fuels, not Indian food habits escalate food prices


Mumbai: Minister of State for External affairs feel that diversion of food grain and encouraging it by diversion is the reason behind price hike. "Diversion of food grain for bio-fuels and encouraging it by subsidising such diversion is the primary reason if not the exclusive reason for rising food grain prices all over the world", said Minister of State for External Affairs Anand Sharma.

He was speaking at the round table conference organised by FICCI on 'Foreign policy-Implications for Indian Business'. Perhaps for the first time in sharp response to US president George Bush's statement, "India and China are causing rise in the food prices", from the senior government functionary Sharma said, "issue of the bio-fuels must be addressed very carefully and it should be ensured that, it doesn't threatens the food security".

The food grains which are diverted for bio-fuels may not be the staple diet for rich and affluent countries but they are part of staple diet for millions and millions of people in many poor countries. And one must understand issue of food security is also linked with health security, he added.

Another important factor, which is causing rise in the food prices, all over the world is the rising oil prices, as today's agriculture is energy intensive and also dependent on fertilisers, which is also a petroleum product, he pointed out.

Later speaking with media persons on the future of Indo-US nuclear deal he virtually admitted that, nuclear deal is dead and buried by saying "I won't like to use such a harsh words and dialogue and consensus between two sovereign nations don't get affected by the change in the dispersion".

Even if there is a change of government in the United States after the elections, it won't disturb basic understanding between two countries on civil nuclear deal, he expressed confidence. Defending governments dilly-dally approach over the nuclear deal Sharma said, "we are living in an era of coalition politics and it is necessary to build larger consensus on such an important issue at home before, we sign a treaty with another country.

Source: Business Standard