NEW DELHI: Global food prices could ease by up to 20 per cent by 2010 if biofuel production is stopped completely across the world, a US-based think-tank has said in its latest report.

"If biofuel demand from food crops was abolished after 2007, prices of key food crops would drop more significantly. By 2010, maize prices are expected to fall by 20 per cent, wheat by 8 per cent and sugar by 12 per cent," International Food Policy Research Institute (IFPRI) report said.

However, it maintained that the contribution of biofuel production in wheat and rice price rise is only 22 per cent, while factors like bad weather in key producing nations like Australia, higher oil prices and poor government policies had much bigger impact.

It also said, "If biofuel production was frozen at 2007 levels for all countries and for all crops used as feedstock, maize prices are projected to decline by 6 per cent by 2010 and 14 per cent by 2015."

The demand for biofuel has increased prices of wheat by 22 per cent and rice by 21 per cent during 2000-07 period, while the overall impact on all grain prices is estimated to be about 30 per cent, the report 'Biofuels and grain prices: impacts and policy responses' revealed.

However, the biggest impact was seen on maize, which rose by 21 per cent due to increased biofuel demand, IFPRI said, adding that the role of biofuel policies in the food-price hikes has become particularly controversial.