Global ‘wheat war’ about to take place?

Wheat prices rose to record levels in the past 2 months in Russia, Kazakhstan, India – Photo: WORLD NEW PLATFORM

Since the beginning of 2022, the world wheat price has increased by more than 60%. Reply to newspaper Izvestia of Russia, experts say Wheat prices rose due to the conflict between Russia and Ukraine, two countries that provide nearly a third of the world’s wheat exports.

In the 2021-2022 crop year starting in July 2021, Russian suppliers account for 16% of total global wheat exports and Ukrainian producers 10%.

Due to the conflict, both countries restricted wheat exports. In February 2022, Russia restricted the export of all grains (wheat, rye, barley and maize) outside the Eurasian Economic Union (EAEU) until June 30. Meanwhile, the only remaining port in Ukraine’s Odessa has closed.

According to Radio Russia Todayanti-Russian sanctions forced international companies to sever their longtime business ties and leave Russia, which disrupted supply.

The EU recently banned cooperation with the Black Sea trading port of Novorossiysk, while more than half of grain exports go through it.

Furthermore, following Moscow’s decision to restrict exports, Kazakhstan also followed its own restrictions. In early May, India also stopped exporting wheat.

The grain crisis is taking place globally, but the most severe is in Africa, which depends on exports from the Black Sea region for 90% of its needs. Last month, United Nations Secretary-General António Guterres warned that a fifth of humanity is at risk of hunger due to the tense situation in the current wheat market.

Western nations have accused Russia of starting a “wheat war”, blaming Moscow for the current crisis.

However, experts assert that Russia is not the only country responsible for the worsening wheat crisis. If so, then Russia is not the country that caused this food war on its own.

Russia did not ban exports but introduced temporary tariffs and quotas to protect the domestic market.

As for Ukraine, its grain is being actively removed from storage with the help of the EU. The bloc’s top diplomat, Josep Borrell, recently stated that Ukraine needs help to continue producing and exporting grain and wheat.

Quoting experts, newspapers Izvestia note that Russia and Ukraine are not the only major global wheat exporters.

Other producers that can save the world market from the crisis, such as the United States and Canada, export 26 and 25 million tons of wheat a year, respectively, or about 25% of total global exports. bridge.

Other major Western wheat producers are France (19 million tons) and Germany (9.2 million tons).

However, according to analysts, it is difficult for the world’s major wheat producers to share the grain with countries that need it, because they will also have to prioritize their own food security. .