World Bank Study: Biofuel Demand Triggered 75 Percent Rise In Food Prices

July 4, 2008 1:55 p.m. EST

Washington, D.C. (AHN) - A World Bank report said the high demand for biofuel caused the increase in food prices by up to 75 percent. The figure is higher than earlier estimates and debunked a claim by the U.S. government that the high demand for plants to be used as biofuel feedstock accounted for less than 3 percent increase of food prices.

The story on the report came out in Guardian Unlimited and the U.K. Telegraph, but the World Bank study which has been completed in April, remains unpublished to avoid embarrassing President George Bush.

A part of the report, quoted by the U.K. Telegraph, stated, "Without the increase in biofuels, global wheat and maize stocks would not have declined appreciably and price increases due to other factors would have been moderate."

Britain's Gallagher Report is expected to be released soon. It measures the impact of biofuel production on food prices.

Another World Bank report said soaring food prices has pushed 100 million people in different parts of the globe to live below the poverty line.