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World wheat prices jump after India’s export ban and war in Ukraine: FAO

The price of wheat surged in international markets after India announced an export ban on the staple grain and due to reduced production prospects in Ukraine following the Russian invasion, the United Nations food agency.

The index, which tracks monthly changes in the international prices of a basket of commonly traded food products, however remained 22.8% higher than in May 2021. The FAO Cereals Price Index averaged 173 .4 points in May, up 3.7 points (2.2%) from April and up to 39.7 points (29.7%) above its May 2021 value.

International wheat prices rose for a fourth consecutive month, rising 5.6% in May, to average 56.2% above their value a year ago and only 11% below the level record reached in March 2008, he said on Friday. The sharp rise in wheat prices was in response to an export ban announced by India amid concerns over crop conditions in several major exporting countries, as well as reduced production prospects in Ukraine due to war. , did he declare.

By contrast, international coarse grain prices fell 2.1% in May, but remained 18.1% higher than a year ago. Slightly improved crop conditions in the United States of America, seasonal supplies in Argentina and the imminent start of the main maize crop in Brazil caused maize prices to fall 3.0%, remaining higher than 12.9% to their May 2021 level, he said.

International rice prices increased for the fifth consecutive month in May. Quotations strengthened in all major market segments, but monthly increases were least pronounced (2.6%) for the most traded Indica varieties, amid abundant supplies, particularly in India, a- he declared.

The FAO Sugar Price Index fell 1.1 percent from April as a bumper harvest in India supported global supply prospects. The weakening of the Brazilian real against the US dollar, as well as lower ethanol prices have put further downward pressure on global sugar prices.

The FAO Sugar Price Index averaged 120.3 points in May, down 1.3 points (1.1%) from April, marking the first decline after strong increases in over the previous two months, the agency said. The recent monthly decline in international sugar price quotations was triggered by limited global import demand and good prospects for global availability, mainly due to a bumper harvest in India, he said.

Last month, India announced it was banning wheat exports in a bid to control high prices amid fears of wheat production being hit by the scorching heatwave. Exports of wheat were allowed on the basis of permission given by the Indian government to other countries to meet their food security needs and on the basis of the request of their governments.

Minister of State for External Affairs V. Muraleedharan had told the Ministerial Meeting on the Call to Action for Global Food Security chaired by US Secretary of State Antony Blinken under the US Presidency of the Security Council for the month of May that India is committed to ensuring that this negative impact on food security is effectively mitigated and vulnerable people are protected from sudden changes in the global market.

“In order to manage our own overall food security and to meet the needs of neighboring countries and other vulnerable developing countries, we announced certain measures regarding wheat exports on May 13, 2022.”

“Let me clarify that these measures allow for export on the basis of approvals to countries that are required to meet their food safety requirements. This will be done at the request of the governments concerned. Such a policy will ensure that we will genuinely respond to those who need it most,” he added, emphasizing that India will play its rightful role in promoting global food security.

First post: STI


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