China bio-fuel policy may give way to food security priorities
2011-03-28 15:33:11
China’s food security objectives may get clashed with its energy independence and environmental objectives, according to a recent publication by the US International Trade Commission.
Biofuel development in China may experience constrains, as a result, says Platts referring to the study, “China's Agricultural Trade: Competitive Conditions and Effects on US Exports. “
China is the world’s second largest corn producer after US and uses corn to produce bio-fuels.
Development of China’s bio-fuel segment would mean a reduction in other agri-items and recently, China had taken away the subsidy it had provided to bio-fuel plants in the country as it views corn in the same perspective as that of wheat in relation to food security.
Recently there were rumors that China has given bulk import orders to US corn industry.
Bio-fuel industry in China is yet to extend full-blown support to the domestic energy industry at some 2.1 million mt of biodiesel-producing capacity.