NDRC says China will now focus on non-grain sources

China will encourage the production of ethanol from non-grain sources amid concern over the quantity of crops diverted to biofuels projects, leading to rising prices for corn, soy and wheat, according to a notice from the National Development and Reform Commission (NDRC). According to the Xinhua News Agency, the NDRR also issued an urgent notice requiring local governments to stop irrational development of their corn processing capacity and to straighten out corn processing projects. The government will immediately suspend the approval of crop processing programs and undertake investigations of projects currently being built or to be built, the NDRC said in the notice. (December 28, 2006)