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Mumbai, Oct 9 An urgent review of the policies and subsidies relating to biofuel has been demanded by the United Nations Food and Agriculture Organisation (FAO) in its annual flagship publication, The State of Food and Agriculture 2008 released earlier this week.

The review has become important in order to preserve the goal of world food security, protect poor farmers, promote broad-based rural development and ensure environmental sustainability, the report has pointed out, warning that continued use of traditional food crops will put upward pressure on global food prices.

Currently, the way biofuel policies have been shaped and are being implemented they tend to favour producers in some developed countries over producers in most developing countries. According to the FAO chief, the challenge is to reduce or manage the risks while sharing opportunities widely.

Some of the major agricultural commodities (traditionally food crops) used as feedstock for biofuel include corn (maize), wheat and sugarcane for ethanol and vegetable oil (mainly soyabean oil, rapeseed oil and palm oil) for biodiesel.

Between 2002 and 2007, biofuel production based on agricultural commodities increased more than three-fold, and biofuel now covers nearly two per cent of the world’s consumption of transport fuels, the report pointed out adding, despite remarkable growth, the share of biofuel in global energy use remains limited.

Yet, the continuing use of agricultural feedstock into the future will put an upward pressure on food prices, the FAO report warned. Currently, developed countries reap the benefits of biofuel production. If agricultural and biofuel subsidies are removed, and trade barriers that create an artificial market are dismantled, opportunities for developing countries to take advantage of biofuel demand would be greatly advanced, it is pointed out.

In addition, mandated use of biofuel and tax incentives to promote such use have artificially expanded the sector and entailed huge economic, social and environmental costs, all of which demand a review of the extant policies, according to the report.

While growing demand for biofuel and higher agricultural commodity prices benefit primary producers through income and employment enhancement, the risks to food security loom large. Food import-dependent poor countries are at greater risk of facing the negative impact of biofuel.

The report also pointed out that the contribution of biofuel to reduction of greenhouse gas emissions may not after all be as high as previously expected because of land use change and deforestation. FAO has called for an increased spending on research and development to commercialise second-generation biofuel that would use biomass as feedstock.

More Stories on : Non-conventional Energy | Agricultural Institutions

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