The Hindu Business Line : 14% rise in foodgrain use for biofuel likely

NEW DELHI: Diversion of foodgrain for biofuel production across the world is projected to jump by 14 per cent to 124.5 million tonne during 2009-10, says the International Grains Council (IGC). Ironically, shifting of foodgrain for producing biofuel is increasing at a time when over a billion people go to bed hungry. A recent UN estimate puts the number of the world's hungry people at 1.02 billion this year.

According to the IGC, as much as 115 MT of maize, 5.6 MT of wheat, 2.3 MT of sorghum, 0.7 MT of barely and 0.2 MT of other grains may go into biofuel production during 2009-10. At present, the US, Europe, Canada and China are using foodgrain for manufact uring ethanol.

However back home, the ethanol production programme is at an infant stage. The London-based grain body said, “the US will remain by far the largest producer of ethanol from foodgrain, accounting for some 87 per cent of the projected global total (output) in 2009-10, mostly using maize.”

The US is estimated to use 108.5 MT of foodgrain this year and its ethanol capacity may rise up to 66 billion litre by 2010 from the current 54 billion litre, it added. Similarly, the prospect for improved profitability is also expected to boost use of g rains for ethanol production in Europe this year.

New plants and capacity addition are forecast to lift use of foodgrain for biofuel by about 40 per cent to 7.6 MT during this period. Canada and China are projected to divert 2.6 MT and 4.7 MT foodgrain respectively for biofuel production in 2009-10, the report added. - PTI

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