I would like to know exactly what does "Ethanol " mean .. Does it account for price increase of wheat price.

Question

What could be done?

Answer 1

Ethanol is actually the chemist's name for alcohol. Does increased ethanol production cause the wheat price increases? Possibly. Most of U.S. ethanol is made of corn, but as ethanol production expands, farmers plant more corn and less wheat, so wheat supply shrinks, leading to increase in wheat prices.

Answer 2

It's just fuel made from plants. If the ethanol is derived from wheat, then the price of wheat would probably go up because there would be more of a demand for it. But a lot of our wheat is wasted anyway because we make so much of it. There is a lot of factors that dictate the price of crops.

Answer 3

Ethanol is a type of fuel made from plant material. If the crop in question goes up in price, then I guess the cost of the fuel would too. It is a renewable fuel source (i.e., we can keep growing the crop each year), so we won't run out of it (unlike oil).