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Will the Export Food Prices From Ukraine Surge in the Future, Find Out Here
Will the Export Food Prices From Ukraine Surge in the Future, Find Out Here

Will the Export Food Prices From Ukraine Surge in the Future, Find Out Here

  • 18-Jul-2023 5:26 PM
  • Journalist: Robert Hume

A deal that allowed Ukraine to safely export its grain and food items through the Black Sea has expired after Russia declined to extend it. While on the same time, the United Nations said that this would affect the people in need. The deal was brokered by the United Nations and Turkey last July in an effort to relieve a global food crisis that Russia's invasion of Ukraine has aggravated. Ukraine is considered one of the world's leading grain exporters, and the war has significantly blocked the export of millions of tons of grain. Russia has accused Ukraine of mining the Black Sea, making it unsafe for shipping. Ukraine denied the accusation, and the United Nations said it has no evidence to support Russia's claim.

Moscow said it would consider reviving the Black Sea agreement if its demands for improved grain and fertilizer exports were met. Those demands included lifting sanctions on Russia's grain and fertilizer exports and guarantees that Ukraine would not attack Russian vessels in the Black Sea. The United Nations said it was "deeply concerned" by Russia's decision to suspend the grain deal. UN Secretary-General Antonio Guterres said the decision "will have a devastating impact on people in need worldwide." "The suspension of the grain agreement is a huge setback for efforts to reduce the global food crisis," Guterres said. Furthermore, it is also a sign of increasing tension between Russia and the West regarding the war in Ukraine.

Moreover, it is still unclear what the long-term implications of Russia's decision will be. However, this restriction of Russia on Black Sea grain exports would lead to higher food prices and increased hunger in many parts of the world. The Black Sea grain deal halt is likely to result in higher grain, cereals, and vegetable oil prices and other food prices, such as wheat, corn, sunflower, and soyabean oil. This will halt the export of grains, particularly in countries that import grain from Ukraine. Secondly, Higher food prices will make it more difficult for people in importing countries to afford food, especially in low-income countries. This could lead to increased hunger and starvation. Third, the halt of grain exports could have an impact on the environment. Ukraine is one of the main producers of organic wheat. Organic wheat is grown without synthetic pesticides and fertilizers. Losing Ukrainian organic wheat could result in an increase in environmental pollution from conventional agriculture.

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