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Has the increase in corn cultivation for producing ethanol in the U.S. and Europe affected the price of rice?
Yes, indirectly. As farmers in the U.S. and Europe plant more corn in place of wheat to produce ethanol, the price of wheat has risen as supplies have tightened. Faced with higher wheat prices, people are substituting rice in their diets, particularly so in Africa. And, of course, the demand for ethanol as an alternative fuel is linked directly to the soaring price of oil. Moreover, the cost of rice production has increased significantly because fertilizer, transportation, and processing costs have shot up along with skyrocketing oil prices
One leads to another.
In between the chain, we are also facing problems.
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