DOHA • Agricultural and associated products from Brazil and some other countries in the region may cost more in the near future as these countries are busy developing bio-fuel as an alternative source of energy, according to a senior business executive here.

“The skyrocketing oil prices have forced many countries to intensify efforts to develop alternative energy sources and countries like Brazil have gone a long way in producing bio-fuel. More areas of agricultural land may be used to produce the raw-material for bio-fuel which can lead to a shortage of certain products and a consequent rise in prices in the international market," Mohammed Altaf, operations manager of the Lulu Hypermarket told The Peninsula yesterday.

He added that this factor may aggravate the inflationary situation in Qatar and other Gulf countries, since they are major importers of foodstuff from countries like Brazil.

Plants like maize are being widely used to produce bio-fuel, which may lead to a shortage in imports of associated products. When certain crops are diverted to this sector, people would be forced to switch over to other products leading to a rise in their internal demand.

“These are inter-related issues which may have serious consequences in the international market. The rise in commodity prices is not a phenomenon limited to Qatar. Almost every country is affected by the current inflation and this is an issue being discussed worldwide," said Altaf.

He added that, when agricultural produce become dearer, other related products like poultry and livestock would also be affected.

Appreciation of the Brazilian currency has recently led an increase in the prices of various products from the country available in the local market, especially poultry products.