The United Nations Food Agency has said that India’s ban on export of staple cereals and low production prospects after the Russian invasion of Ukraine have led to a jump in wheat prices in international markets. The Food and Agriculture Organization (FAO) price index averaged 157.4 points in May 2022, down 0.6 percent from April.
The index, which tracks monthly changes in international prices of a basket of commonly traded food items, however, rose 22.8 percent as of May 2021. The FAO grain price index averaged 173.4 points in May, up 3.7 points (2.2 per cent). cents) over April and is 39.7 points (29.7 per cent) higher than its May 2021 price.
“International wheat prices rose 5.6 per cent in May for the fourth consecutive month to an average of 56.2 per cent above their previous year’s price and only 11 per cent lower than the record high in March 2008,” it said on Friday.
“The steep rise in wheat prices was in response to the export ban announced by India amid cropping conditions in several major exporting countries as well as reduced production prospects in Ukraine due to the war,” it said.
improve crop conditions
In contrast, international prices of coarse cereals declined by 2.1 per cent in May, but remained 18.1 per cent higher than their value a year ago. Slight improvement in crop conditions in the US, seasonal supplies in Argentina and the imminent start of Brazil’s main maize crop led to a 3.0 per cent fall in maize prices, however, they remained 12.9 per cent above their May 2021 levels.
International rice prices rose for the fifth consecutive month in May. Quotations strengthened across all major market segments, but monthly growth was the least (2.6 per cent) for the most widely traded indica varieties, especially amid ample supply in India.
The FAO Sugar Price Index declined 1.1 per cent since April, as a bumper crop in India raised prospects for global availability. A weakening of the Brazilian real against the US dollar coupled with lower ethanol prices put further pressure on world sugar prices.
“The FAO Sugar Price Index averaged 120.3 points in May, down 1.3 points (1.1 per cent) from April, the first decline after a sharp increase in the past two months,” the agency said. “The recent monthly decline in international sugar prices was due to limited global import demand and good global availability prospects, mostly stemming from the bumper crop in India,” it said.
Last month, India announced that it was banning wheat exports to check higher prices, amid concerns that wheat production would be hit by a severe heat wave. The export of wheat was allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their governments.
‘Committed to Help’
Minister of State for External Affairs V Muraleedharan had said at the Ministerial Meeting on the ‘Global Food Security Call to Action’ chaired by US Secretary of State Antony Blinken under the US Presidency of the UN Security Council for the month of May that India is “committed” to ensuring In order to effectively reduce such adverse impact on food security and protect the vulnerable against sudden changes in the global market.
“In order to manage our overall food security and support the needs of neighboring and other vulnerable developing countries, we have announced certain measures regarding export of wheat on 13 May 2022,” Muraleedharan said.
“Let me make it clear that these measures allow exports on an approval basis to countries that need to meet their food security demands. This will be done on the request of the respective governments. Such a policy will ensure that we truly respond to those who need it most,” he said, emphasizing that India will play its due role in advancing global food security.
Published on
June 06, 2022