Washington finally ends corn ethanol subsidy

Corn-based ethanol is a controversial form of biofuel because it competes with food production and yet for the last 30-years the American Congress listened to the corn lobby and continued to pay subsidy for it just to make sure that the vast farms of the midwest continues to be profitable.

Finally this year, Washington decided not to continue with the ethanol subsidy.

While this may seem like an inconsequential blip on the environmental radar of most people, it is a significant development as it helps to separate edible oils and food-based ethanol from the fuel industry and help to reduce price pressure on essential grains like corn.



Let us not forget that the so-called Arab spring was triggered by fast rising food prices which made normal life difficult and unbearable in the region. High food prices was coupled with everyday corruption and lavish lifestyles of some of their leaders made it easy to spark street protests.

Malaysia is selling palm oil as the bio component in biodiesel and this policy sits rather uncomfortably with those who believe that edible oils should not be used as fuel unless it is already used in food production and is no longer suitable for human consumption.