Are biofuels a panacea or curse for the poor? © IRIN News

South Africa has enjoyed a bumper harvest of its staple maize crop in the 2007/08 season and is traditionally an exporter of the grain. Nevertheless, high food prices are causing hardship especially amongst the poorest families who spend a high proportion of their income on food. Although the government has responded with increased social grants, the incidence of poverty is likely to rise.

There is political tension between an opportunist biofuel industry and the government, wary of its responsibilities for the availability and price of domestic and regional food supplies. The industry is unhappy with a decision to reduce the target for biofuels to 2% of total fuel consumption, with maize ruled out as inefficient and unsuitable.

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