Is rising prices of food due to biofuels?

Fear of a spike in food prices has been palpable in India ever since rains have played truant in the country this year. We are well into August and monsoons have already been 29% below normal with almost 50% of the total districts in India reeling under a drought. The government has assured that it would use its reserves to put a cap on rising food prices and also increase ration supplies, especially in the case of wheat, rice and sugar which have been badly hit by the drought. Thus, the government will have to do all in its power to ensure that there is a smooth operation of the food distribution system and the national markets in the country.

Globally, the International Food Policy Research Institute has warned that even if global reserves are relied upon to curb hunger and price rises, rebuilding stocks from the low levels will be difficult. Food prices had spiked internationally in 2008 as high fuel prices and the subsequent interest in biofuels impacted production of other crops. Therefore, a lot of issues will need to be addressed if a food crisis in the future has to be prevented