on one hand he says in the energy policy to make 10% of the fuel to be biofuel - and world over con prices have shot up due to farmers selling all their corn to biofuel plants. the result is worldover price rise in corn. in india they might argue that the 10% biofuel will come from jatropha - but thats hardly the sae - the most likely source will be sugar - ethanol. jatropha will only be a facade.
these days the farmers are smart. the moment there's a slight fluctuation - they can hoard, sell it at a later date, or sell it abroad for a better price. the futures are not helping either - too much speculation just keeps the price high forever.
on this backdrop - if the PM after knowing all this - if he continues with the 10% biofuel plan its sheer madness.
RE:the Pm is out of his mind
by Thing on Apr 10, 2008 08:05 PM Permalink
You are probably talking of the "smart" trader not smart farmer. Farmer cannot afford to hoard :-)
