21 August 2012 15:04 [Source: ICIS news]
LONDON (ICIS)--German ministries disagree over a possible ban on 10%-ethanol blended gasoline (E10), officials said on Tuesday.
“I am firmly convinced that the rigid [ethanol] blending rules in Germany, but also in the US, lead to exorbitant price hikes for food when harvests are poor, and therefore we should halt E10 production,” Niebel said on German state television.
German consumer pressure group foodwatch supported the minister.
“[E10] is the wrong way because it stands in competition to food production and is therefore also responsible for rising food prices,” foodwatch general manager Thilo Bode said.
However, an official at
The current increase in global food prices was due to the
“But we see biofuels having only a slight influence on food prices,” he said.
According to VDB, only about 4% of the country’s grain harvest in 2011 was used for bioethanol production.
In related news, a US court last week threw out a challenge by petroleum, grocery and automobile associations who claimed that 15%-ethanol blended gsoline (E15) could harm engines and was inadequately tested.
Additional reporting by Brian Ford
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