The developed world’s seemingly unquenchable thirst for miracle fuels made from food is pushing Russia further towards authoritarianism. The Financial Times today reports that Russian President Vladimir Putin will impose price controls on certain staples in an attempt to stifle inflation before parliamentary elections in December.
Putin opted for the Soviet style measures because the price of wheat has shot passed record highs, and is still increasing. With more and more arable land given to the production of food for fuel, there is less space for crops that are eaten. As a result, the global food supply chain is becoming taut, and food prices are spiraling upwards.
Nor is Russia the only country whose domestic politics, and even social stability, could be impacted by accelerated global biofuel production. About two weeks back, I identified a number of regions that are vulnerable to food inflation because of miracle fuels. See it here.