Wheat prices have increased more than 55% since the week before the invasion.
New Delhi: Food prices are increasing globally amid the Russia-Ukraine war. According to the U.N. food agency – Food and Agriculture Organisation (FAO), world food prices hit a record high in February to post a 24.1% hike year on year.
For instance, wheat prices have increased more than 55% since the week before the invasion, as Russia and Ukraine are two of the major exporters of the food grain. The “war’s impact on global trade has been most severe in the Black Sea, where Russian and Ukrainian ports are major hubs for wheat and corn,” according to a report by Reuters.
Prior to the war, Ukraine accounted for 16% of global corn exports. Along with Russia, Ukraine accounted for 30% of wheat exports. Not to forget, Russia is the largest exporter of wheat in the world. A war between the countries means poorer countries depend on imports to face major supply shocks.
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Moreover, the traffic from the Black Sea region has come to a halt, effectively shutting down the second-largest grain exporting region in the world. The rising prices of food grains and supply chain issues are likely to impact several world economies.
Countries like Turkey, which import about 78% of wheat from Russia and another 9% from Ukraine, are likely to be hit hard from the rising food prices and a crunch in the supply chain.
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Rising wheat prices impact India?
The rising global prices of wheat are unlikely to hit India, as in the past few years, India has turned into a net exporter of the food grain. In 2020, India exported wheat worth $243,067,000, according to a report by World Top Exports.
In 2021, India was expected to increase its wheat exports. According to the US Department of Agriculture (USDA), Indian wheat exports for 2020-21 (July-June) were likely to touch 1.8 million tonnes (mt), as against an earlier estimate of 1 mt.
