LONDON, July 5 (Xinhua) -- A secret World Bank report has shown that biofuels have forced world food prices up by 75 percent, disputing U.S. President George W. Bush's claims that higher demand from India and China has led to higher food prices, according to a report issued in Friday's Guardian.
The report, which was completed in April and obtained
by the Guardian newspaper, is based on the most detailed analysis of the food
crisis conducted by Don Mitchell, a senior economist with the World Bank.
"Rapid income growth in developing countries has not
led to large increases in global grain consumption and was not a major factor
responsible for the large price increases," said the leaked report.
The 75-percent figure sharply contradicted the claims
by the U.S. government that biofuels contribute less than 3 percent to food
price hikes.
The report argued that the European Union (EU) and
U.S. drive for biofuels has put by far the biggest impact on food supply and
prices.
It will also serve to put pressure on U.S. and
European governments which advocate switching to biofuels to reduce emissions of
greenhouse gas as well as dependence on imported oil.
Sources believed that the report was not published so
as not to embarrass the U.S. government.
Leaders of the Group of Eight (G8) industrialized
countries are expected to meet next week in Hokkaido, northern Japan, to mete
out policies on biofuels and food crisis, while the British government is also
to release the Gallagher Report on the impact of biofuels.
The new figure will add great pressure to both the G8
meeting and the upcoming British policy.
The World Bank estimated that rising food prices have
plunged some 100 million people across the world below the poverty line, causing
riots from Bangladesh to Egypt.
Since April, all petrol and diesel in Britain has
included 2.5 percent from biofuels. The EU has been considering a even higher
target of 10 percent by 2020.
"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," said the report.
The food prices examined in the study rose by 140
percent between 2002 and this February, with estimated higher energy and
fertilizer prices accounting for a 15-percent rise and biofuels responsible for
a 75 percent hike.
The report argued that production of biofuels has
distorted food markets by diverting grain away from food for fuel with farmers
being encouraged to set land aside for biofuel production.
In addition, it has driven financial speculation in
grains, driving prices up higher.