Damascus-SANA
The growing global food crisis as a result of the sanctions imposed by the United States on Russia has prompted some countries to ban exports as a solution to the crisis that has put global grain production, edible oil supplies and fertilizer exports to the winds, and raised the prices of basic commodities.
The sanctions imposed by America and Western countries on Russia against the backdrop of the Russian military operation in Ukraine to ensure its national security have worsened economic conditions at a time when the ability to purchase food is a challenge as economies seek to recover from the effects of the Corona virus pandemic, which has raised the possibility of a prolonged global supply crisis. It will lead to increased inflation and hunger among the world's poor.
Indonesia's announcement today to tighten restrictions on its exports of palm oil came to be added to a long list of producing countries that seek to keep supplies of major foodstuffs within its borders, as Indonesian Trade Minister Muhammad Lutfi explained that the aim of imposing restrictions on exports is to ensure that the prices of edible oils remain within the reach of consumers. Inside, according to Reuters.
The Indonesian announcement sent the price of Malaysian palm oil futures to an all-time high while the price of soybean oil jumped to a 14-year high.
Indonesia was not the only country that resorted to banning exports out of fear of an exacerbation of the global food crisis, as Ukraine announced today that it has banned the export of a large number of agricultural products such as barley, sugar and meat until the end of the year, which Serbia faced by banning exports of wheat, corn, flour and cooking oil as of today Tomorrow, in order to face a rise in prices, it joins Bulgaria, which recently decided to increase its grain reserves by limiting exports.
The impact of US and European sanctions on Russia was not only limited to a major food shortage, but also led to food prices rising to a record level, recording an annual increase of 20.7 percent, according to the Food and Agriculture Organization of the United Nations, which German Agriculture Minister Jim Ozdemir warned about in a statement. This is a significant shortage of food in some countries outside the European Union, where scarcity prevails as a result of drought, pointing out that it is not even possible to exclude the high prices of agricultural products in industrialized countries.
The repercussions of the food crisis also affected the Latin American countries most dependent on the world’s agricultural superpowers and imported fertilizers, as Brazil imports about 85 percent of its fertilizers and one-fifth of it from Russia, which prompted it to search for new fertilizer suppliers after fearing that shipments would be cut off and possible repercussions on food price inflation The already high cost, as farmers will then have to pay much higher prices for fertilizers or abandon farming due to the high cost of agricultural products, which in turn will lead to a further rise in global food prices.
And Alexis Maxwell, an economic analyst at Bloomberg's Green Markets agency, believes that the loss of Russia and its large volume of exports would be a severe shock to the supply side of the market.
As grain supplies in major exporter Romania dwindle as international buyers seek alternatives to Russian and Ukrainian supplies, although there are currently no plans to restrict shipments, Chicago wheat futures have risen by 60 percent, threatening to push up the cost of key food items such as bread.
And it seems that “all of us will feel the pain of the sanctions imposed on Russia,” according to the headline of the editorial in The Independent today, in which it said, “This principle applies to those who impose sanctions and not only those who are subject to them.”
Fahmy El Shaarawy
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