BioDiesel stocks

China wants to limit the use of maize and wheat in bio-combustibles

Tuesday, December 19, 2006

Leaf of S. Paulo Signs Concern is that the use of grains to get ethanol raises more the prices of the products and reduces the food supplies Strong demand made price of the maize to almost go up 20% in November in China, for levels that were not registered since 1997 China intends to protect its offers of foods, restricting the use of maize and wheat in the production of bio-combustibles, according to authorities of the government, that had still not established a limit.

The Chinese government is worried about the fact of that the use of grains in the fuel production can intensify recent the high one in the prices of these products and reduce the food supplies of the country. "In China, the first concern is to more than supply food the 1,3 billion of inhabitants. After this, we will go to support the production of bio-combustibles ", said Yang Jian, director of the Department of Planning and Development of the Ministry of Agriculture, to the periodical" China Daily ". In November, the prices of the maize had gone up 20% almost, for levels that were not registered since 1997 in the country, in way to a scene of strong demand on the part of maize processors, including producing of ethanol, that it dimmed the effect of a harvest has remembered in this year.

According to Jian, of this time in interview to the Xinhua agency, all the projects of ethanol or expansion of capacity have of being approved by the government. according to National Commission of Develpment and the Reformation (NDRC, in the acronym in English), local investors intend to construct units of production of ethanol with annual capacity already exceeding 10 million tons. The commission will go to encourage the units to use raw material that is not agricultural product and will go to assign units to produce ethanol for mixture to the gasoline. Any irregular expansion or not authorized production and vends will not receive aid financial from Beijing, according to commission. China offers subsidy of 1.373 iuans (about USS 175) for ton for producers sponsored for the government. The plan of the Chinese government also foresees the subsidy to the producers of bio-combustible in the future.

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