Is it time to ditch biofuels?

Using grains to make biofuels is contributing to skyrocketing prices and food riots around the world, said the Montreal Gazette. Clearly, it's time to scrap ethanol. Dropping biofuels would be a mistake, said Newt Gingrich in the Atlanta Journal-Constitut

What happened

German Chancellor Angela Merkel and President Luiz Inacio Lula da Silva of Brazil, the world's top sugar cane grower and a big ethanol producer, said this week that soaring prices for rice, milk, and other staple foods should not be blamed on the push in the U.S. and Europe to replace oil with biofuels. “Food is expensive because the world wasn't prepared to see millions of Chinese people, millions of Indians and Africans eating three times a day,” Lula said. (Bloomberg) The diversion of grains to make ethanol has been blamed, along with high oil prices, for price hikes that have caused food riots around the world. (The New York Times, free registration)

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