Romanian Food Assoc Warn Biofuel Prod Affects Food Sector

Romanian associations of companies operating in food industry ask European Commission to "carefully" consider the encouraging of biofuel sector development as it requires large quantities of grains and oil plants, to the detriment of the food sector.

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Romanian producers say the development of biofuel output triggers a high demand of oil plants and consequently, leads to higher prices.

Romanian Agriculture Ministry said it supports subsidies for biofuel crops, considering them as incentives for the farmers to work the lands.

In 2004, European Union decided to grant subsidies to encourage the cultivation of biofuel crops.

In 2007, EU said the biofuel percent used as transport fuel should grow by up to 10% by 2020.

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