SHANGHAI, China: China will restrict the use of corn and other edible grains for producing biofuel, state media reports said Monday, noting concerns over surging prices despite expectations for yet another bumper harvest.
"We have a principle with regard to biofuel: it should neither impact the people's grain consumption, nor should it compete with grain crops for cultivated land," the state-run newspaper People's Daily quoted Yang Jian, director of the development planning department under the Agriculture Ministry, as saying.
It said Yang emphasized that his ministry opposes using edible grains as raw material for biofuel. He noted that the government was, however, encouraging farmers to grow sorghum, cassava and other non-grain crops on marginal land to supply biofuel processors.
Agriculture Ministry officials had no immediate comment on the reports.
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http://www.iht.com/articles/ap/2006/12/18/business/AS_FIN_China_Grain_Biofuels.php