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LIVE

Saturday, 30 August, 2008, 11:20 GMT | more prices >>

'Biofuels pose a moral problem'

By Upstream staff

Biofuels pose a moral problem and the worst of rioting prompted by soaring food costs may be yet to come, Dominique Strauss-Kahn, head of the International Monetary Fund, said today.

"When we make biofuels from agricultural products not used for food, that is fine. But when they are made from food products, this poses a major moral problem," Strauss-Kahn told Europe 1 radio station.

Asked if he would support a possible moratarium on biofuels, Strauss-Kahn said: "When they use foodstuffs."

Countries needed to strike a balance between addressing environmental problems and the need to ensure people did not perish from hunger, he said, saying protests sparked by rising food costs around the globe could worsen.

"In terms of food-related riots, the worst is unfortunately possibly in front of us," Reuters quoted him as saying. "Hundreds of thousands of people are going to be affected."