China being forced to rethink biofuel plan

China is being forced to rethink its biofuels plans as food prices continue to rise. In January, the Ministry of Agriculture’s plans to boost biodiesel production to 200,000 tons by 2010 and two million tons by 2020 are now uncertain. An estimated 40% of the overall increase in the consumer price index is attributed to food price hikes. The ministry said it would guarantee grain production to stay at more than 500 million tons in 2008, which is enough to meet the country’s total grain requirement estimated at approximately 512 million tons. (June 30, 2008)