NEW DELHI

Wheat prices fell on Friday as Ukraine and Russia negotiated an agreement to permit essential grain supplies to safely depart Black Sea ports, perhaps averting an impending global food crisis. The price of US wheat has unwound virtually all of its "war gains," falling by over 3% to a five-month low of $786 per bushel. 

Advertisment

Late in February, when Russia invaded Ukraine, the price of wheat soared by 70%, reaching a record high of more than $1,300 in the two weeks that followed. Together, the two nations export more wheat than any other nation in the world.

Early in the year, drought in important grain-growing areas, including the United States and Canada, threatened to further reduce the supply of wheat and other grains, placing millions of people at serious risk of becoming hungry. To quell domestic turmoil, some nations implemented export restrictions.

Nearly 20 million tonnes of grain destined for export are stalled in Ukraine. Once this year's harvest is complete, this might rise to 75 million tonnes. The agreement was welcome news for this enormous stock, which was lying because of the export restrictions.

×

Advertisment

Food price inflation hurts consumers' wallets everywhere, but it is especially noticeable in developing nations, where the confluence of high inflation and a higher US dollar is driving several nations, including Sri Lanka, to the verge of insolvency.

A global food crisis has resulted from the embargo of Ukraine's grain, with the price of wheat-based goods like bread and pasta rising along with the cost of cooking oils and fertiliser.

(With inputs from agencies)

Advertisment

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.