Food became expensive: Russo-Ukraine war made flour costlier by Rs 5/kg, after Maggi, now the price of biscuits will also increase

Due to the war between Russia and Ukraine, inflation is increasing rapidly all over the world. Russia-Ukraine are called the ‘bread baskets’ of Europe. Ukraine and Russia account for 29% of wheat and 19% of corn in the world market. Due to this the export of wheat from Russia and Ukraine has also been affected due to the war. Due to this wheat has started becoming expensive.

Russia is the largest exporter of wheat
Wheat exports to Russia and Ukraine have also been affected and there is a possibility that the supply of wheat will be affected in the coming times as well. Russia is the largest producer of wheat after China and India and it is at the top position in terms of export of wheat. Ukraine ranks fifth among wheat exporting countries.

Wheat getting expensive due to ban on export from Russia
Several countries, including the US, Lebanon, Nigeria and Hungary, have banned the export of everything from Russia, including wheat and crude oil. There is a shortage of wheat in such a world. In such a situation, to meet this shortage, India has increased the export of wheat.

Wheat going to Europe and African countries
After the ban on export from Russia, 2 to 3 lakh quintals of wheat is going to Europe and African countries every day from major producing states of the country like Madhya Pradesh. This has made wheat and flour expensive in the local markets. The price of wheat in 15 days ranges from Rs.2200/quintal to Rs.2600. have reached. Result- Every product made from wheat has become costlier by Rs.5-5/kg.

Flour became expensive by 2 to 3 rupees
Due to wheat becoming expensive, its flour has also become expensive by Rs 2 to 3 per kg. Its price has reached 28 to 30 rupees per kg. Not only this, apart from porridge, bread, biscuits, noodles, pizza and semolina, other items made of wheat are becoming expensive.

Prices of flour products started rising
Now the prices of flour products have started increasing. On March 14, Nestle India has increased the price of small packs of Maggi from Rs.12 to Rs.14. At the same time, the price of individual packs of Maggi has increased from 9 to 16%. At the same time, there is news that soon Parle-G biscuits may also become expensive.

Inflation reached record in the country
The government released the retail inflation data on March 14. The common man has suffered a setback on the inflation front in February. From food items to vegetables, shoes and slippers have all become expensive.
The Consumer Price Index (CPI)-based retail inflation rose to an 8-month high of 6.07% in February. It was 6.26% in June 2021. After June, the inflation figure has crossed the RBI’s fixed limit of 4 (+/-2%) for the second consecutive month. January 2022 it was 6.01%.

Opportunity in front of India to become a big exporter of wheat
Only Russia supplies 30% of the world’s wheat. Its import is currently banned. India is second only to China in wheat production, but our export is only up to 1%. In such a situation, India can get the benefit of the ban on Russia now. India is the second largest producer of wheat. At present, India also has sufficient supply of wheat, which can prove to be helpful in increasing exports.

As of February 1, a stock of 282 million tonnes of wheat has been recorded in the central pool of the country. Apart from this, the past stock is also lying with the market and the farmers. India is expected to produce more than 110 million tonnes of wheat this year. The country’s own consumption in a year is about 105 million tonnes, which means that even after meeting the domestic requirement, there will be enough wheat left for export. Farmers will also benefit from this. So the Government of India needs to pay attention to this.