According to a news report from netnewsledger.com, “Have you noticed how prices for many products are going up in the local grocery stores? A 10kg bag of flour, which cost about $6.00 last September is now running about $14.00. The price of wheat is now at record levels. Around the world, the prices for corn, rice and other staples have risen sharply.”
“One of the main reasons is greater demand for bio fules which have farmers growing crops to make fuel rather than food,” said the story. “Both the federal Conservatives and provincial Liberals have incentive programs to encourage bio fuel production. However Premier Dalton McGuinty says, “A whole bunch of circumstances are driving up food prices.” The Premier’s comments come as McGuinty declared that he will not change Ontario’s subsidies for bio fuel production. McGuinty has set a goal of having 5% ethanol content in Ontario’s gasoline and plans to spend $520-million over the next twelve years on ethanol production. Some experts suggest that the growing ethanol industry will eventually consume all of Ontario’s corn crop.”
