India has said that demand for bio-fuels, and not higher consumption in emerging economies, was driving global food prices higher.

"FAO studies clearly show that recent high commodity prices have not originated from emerging economies," Agriculture Minister Sharad said at the Food and Agriculture Organisation's World Food Security Summit in Rome on Tuesday evening.

Refuting the West's criticism that developing countries were contributing to the food crisis by consuming more, he said FAO studies also suggested that additional demand for maize for production of ethanol and rape seed for making bio diesel had had the strongest impact on prices.

US President George Bush had said in May that prosperity in countries like India triggers increased demand for better nutrition, which in turn leads to higher food prices.

Making a case for examining the use of bio-fuel as an alternative fuel, Pawar said, "If we decided to convert all of the world's grain into motor fuel, we will still need to use lots of oil and we would not be having anything to eat."

The minister further said, "Conversion of foodgrain and oilseeds for producing bio-fuel prima facie appears to be fraught with food security concerns as is evident already."

However, several leaders, especially Brazilian President Luiz Lula da Silva, defended the use of bio-fuel by pointing out that 'biofuels are not the villain menacing food security in poor countries...we must, therefore, clear away the smoke screens raised by powerful lobbies which try to blame ethanol production for recent price inflation in food prices".

Relating the India story, Pawar said, "Our experience in India gives me the confidence that the challenge (of rising food prices) may be met by the world community by increasing focus on the agriculture growth."

Noting India's emphasis on farm sector has started giving dividends, he said, "We are going to have record production. The increase in prices in India has been moderate".

India has been feeding 17 per cent of the world's population on less than five per cent of the world's water and three per cent of the arable land, he said.

India, Pawar said, managed a record food grain production of over 227 million tonne in 2007-08 with rice and wheat output rising to more than 175 million tonne. Procurement for public distribution has already touched 47 million tonne.

As regards prices, the minister said increase in rice and wheat rates in India has remained at a moderate 7 and 8 per cent against 161 and 76 per cent elsewhere in the world.

"India has been able to manage food security in terms of availability and price level in a reasonably satisfactory manner." Pawar attributed India's success in farm sector to the the government's efforts to make growth more inclusive and also ensure that everyone has access to food.

Pointing out that the global prices of foodgrain are likely to remain high, he said world community needs to look at them in proper perspective to evolve an right strategy.

Expressing India's commitment to work with the global community in dealing with the food crisis, he said, "There is an urgent need to enhance investment in research in public sector and making it available to to farmers."

The countries world over, Pawar said, need to give agriculture the importance it deserves.

Inflation, the silent killer