Business | Economy
ADB seeks removal of biofuel subsidies
Developed nations should stop paying agricultural subsidies to encourage biofuel production because the payments are making staple foods more expensive, the Asian Development Bank (ADB) said on Monday.
- AP
- Published: 23:39 April 21, 2008
Singapore: Developed nations should stop paying agricultural subsidies to encourage biofuel production because the payments are making staple foods more expensive, the Asian Development Bank (ADB) said on Monday.
Biofuels should also be re-examined by governments around the world as it is increasingly unclear how environmentally friendly they are, said ADB Managing Director General Rajat Nag.
The production of biofuel leads to forests being destroyed and reduced land area for growing crops for food, he said.
"We feel that the developed countries should seriously rethink the whole issue of biofuel, particularly the biofuel subsidies," Nag said. "Giving subsidies for biofuels ... basically acts as an implicit tax on staple foods."
Paying farmers to grow oilseed and other crops to produce biofuels means they grow fewer food crops, resulting in higher prices.
Share this article
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
It costs a million to raise a child
Generation Z doesn't leave home at 18, but stay with the parents until mid-20s
-
Investing in funds doesn't come cheap
Many people are unaware of the effect of different expenses on their returns
-
Firm turns televised events into marketing dream
Drops anchor in Dubai to sell world's richest yachting races
