Bad weather is threatening a big shortfall in this year's US maize harvest, according to US officials, risking a further upward push to food and energy prices. Maize is the main feedstock for US ethanol. A further rapid rise in its price is likely to add to growing concern on Capitol Hill that federal biofuel subsidies are worsening the food crisis.

German Minister Stops Biofuel Blending Plans GERMANY: April 7, 2008 BERLIN - German Environment Minister Sigmar Gabriel said on Friday he had stopped government plans to raise compulsory bioethanol blending levels in fossil gasoline. Politicians and industry groups had criticised the plans to raise the level to 10 percent for some gasoline grades from five percent, fearing the increase would damage older cars.

Building more and smaller ethanol plants could help overcome concerns that production of the biofuel consumes more in energy than it provides, Canadian Agriculture Minister Gerry Ritz said on Friday. One of the reasons so much energy is used to make ethanol is that trucks travel long distances carrying corn, chaff or other plant material to ethanol plants. "Smaller and locally owned I think are the right way to go," Ritz said as he kicked off debate in the House of Commons on the final stage of a bill that would ensure that gasoline contains 5 percent ethanol by 2010.

You can stop berating yourself for buying that Spanish clementine or New Zealand lamb. Although lists of "what you can do to save the planet" include eating locally

Rising food prices may derail biofuels policy

General Motors Corp is taking another stake in a company focused on developing ethanol from sources other than corn, the automaker said on Thursday. Mascoma Corp is testing its process for converting biological wastes -- plant matter, grasses, wood chips and other non-grain sources -- to fuel. It expects to start producing ethanol later this year at a demonstration plant in New York state.

Canada's plan to ensure that gasoline contains 5 percent ethanol by 2010 won support in the House of Commons on Thursday despite increasing concern about the impact of biofuels on world food supplies. The legislation, which also calls for diesel to contain 2 percent renewable fuels by 2012, passed a critical vote in the House, where the Conservative government has a minority of seats, with the support of opposition members from the Liberal and Bloc Quebecois parties.

The fuel ethanol industry has evolved from its experimental beginnings in Brazil in the 1970s and the passionate advocacy of U.S. corn growers in to the mainstream to become a key part of the global energy menu.

Missouri is considering rolling back a mandate supporting ethanol production amid growing outrage over rising prices for food and livestock feed. Less than four months ago, ethanol supporters were celebrating implementation of a Missouri law requiring gasoline sold throughout the state contain 10 percent ethanol. The law, passed in 2006, took effect Jan. 1. But now, in the face of growing criticism of the nation's ethanol-friendly policies, Missouri may be among the first to back away from ethanol supports.

The real solution for meeting shortages is to increase supplies instead of imposing controls. There is ample scope for increasing production of food grains -Brij Bhardwaj

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