Price of Commodities Record High For The Conflict Between Russia and Ukraine
By TOI Team March 12, 2022 Update on : March 12, 2022
The current conflict between Russia and Ukraine are spreading all over the world. The price of commodities like Wheat, Oil, Gas, and other commodities increased as high as before.
High natural gas costs have pushed his firm, fertilizer giant Yara International, to reduce ammonia and urea output in Europe to 45 percent of capacity. He anticipates the global food supply to suffer as a result of fewer of those two important agricultural elements.
Prices for important agricultural items produced in the region have risen two weeks after Russia invaded Ukraine. Wheat, a pantry staple, is the most problematic. Supplies from Russia and Ukraine, which account for over 30% of world wheat commerce, are now jeopardized. Earlier this week, global wheat prices reached an all-time high.
The global food chain was tight even before Russia launched the war in Ukraine. Poor supply chains and unpredictable weather patterns, which are frequently caused by climate change, have already driven food prices to their highest levels in over a decade. The epidemic was also a problem once millions of people were laid off.
The World Food Program of the United Nations said this month that the number of people on the verge of starvation has increased from 27 million in 2019 to 44 million. Violence between Ukraine and Russia, which together play critical roles in a finely tuned global food supply system, threatens to exacerbate the issue.
Wheat prices have dipped from historic highs in recent times but stay high internationally. They are projected to remain so for some time, according to Rabobank commodity expert Carlos Mera.
Fighting will disrupt the wheat growing season, which begins in Ukraine. It is unclear if the country’s citizens will be able to take up arms or gain access to machinery and other necessary goods that normally pass via Black Sea ports.