The Indian Finance Minister is quite right. As an example, the dutch Grain Surplus Reserve was full for several decades prior to 2000 and it is now empty, primarily due to the surge in bio-fuel demand. Also the actual "Greenhouse Footprint" doesn't actually change much with bio-fuels, it's just a smokescreen to alleviate the consumers conscience on going green while using Hydrocarbon Vehicles. In addition Food prices around the world have risen, partly due to rising oil costs but also because the bio-fuel industry buys up surplus to convert into hydrocarbon fuel.
There are a variety of processes which work on converting cellulose into biofuel. So rather than using food, you can convert any organic plant material into ethanol.
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