Why the govt is not allowing ethanol based oil?

ethanols are made from grains or crops that are more useful as a food source. Especially when you consider the problem with starvation in 3rd world countries. we can sell these fuels as cheap food to peoples in need, rather than selling them as fuels for our cars. besides they already have a market and economy based on fossil fuels, they don't want to restructure everything, especially now with the recession