The New Nation - Internet Edition

A RECENT UN report says, biofuels are not only hurting poor consumers in Asia by driving up crop prices, but also failing to help the region's farmers. So far poor rural farmers have not seen the benefits of biofuel production. The impetus for large-scale farming can push the poor off their land, excluding them from biofuels. The rise of biofuel has come under fire with leaders criticising countries like the United States and Brazil for diverting farm produce to make biofuels, saying this had led to soaring global food prices. Food giant Nestle has also said that the growing use of wheat and corn to make biofuels 'is putting world food supplies in peril.'

The UN report noted that the sector has the potential to lower oil prices as well as provide higher demand for farmers, but urged governments to carefully consider the impact on the poor. It called for a 'revolution' in the agriculture sector that it could lift 218 million people living across the Asia-Pacific region out of poverty. Decades of neglect has weakened the sector's capacity to cut poverty and inequality. Growth and productivity in agriculture have stalled, and the green revolution that boosted agricultural yields in the 1970s has bypassed millions, said the report.

A reform in policies to connect rural communities to their markets has been suggested. While growing demand was one reason for skyrocketing food prices, the use of agricultural produces to make bio-fuels is another cause. The relentless rise in food and commodity prices has put an enormous pressure on the developing countries. The countries producing large quantities of food, should sell it to the rest of the world at reasonable prices. There can be no lopsided priorities of certain countries that produce fuel at a cheaper cost to meet their domestic transport needs even if it leads to higher food prices elsewhere in the world.