Wednesday, April 30, 2008

Ethanol backlash hits new level as food prices jump - Marketwatch April 3th

SAN FRANCISCO (MarketWatch) -- An increasingly bitter public debate over the role that corn-based ethanol has played in driving up food prices is pitting some of the nation's biggest food manufacturers against each other, with hefty U.S. subsidies and mounting commodity costs at stake.

Consternation over higher global food prices reached a fever pitch earlier this month at the World Bank and G7 meetings, with senior officials from some developing nations blaming the United States for supporting biofuels at the expense of the world's poor. Rice prices have gained about 50% in the past year, corn futures have vaulted over 60% and soybean contracts have surged a little less than 80%.

"Congress must put an end to our misguided ethanol policy now," he said.

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