The National Development and Reform Commission (NDRC) has banned expansion of ethanol production from corn amid concern the industry's demand has fueled record-high grain prices, AFP reported, citing state media reports. China has set a goal of producing about six million tons of cleaner-burning fuels such as ethanol by 2010 and 15 million tons by 2020. China currently produces 1.02 million tons of ethanol annually, with 76% derived from corn. The country processed more than 23 million tons of corn for industrial uses in 2005, an increase of 84% over 2001. Corn output increased just 22% over the same period. The NDRC has instead encouraged increased use of non-grain vegetation to make biofuels, claiming they could eventually produce up to 300 million tonnes of ethanol a year.
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