June 22, 2023

Conflict in Ukraine causes shortfall of 11 million tonnes of wheat exports

The ongoing conflict in Ukraine has resulted in a significant shortfall of nearly 11 million tonnes of wheat exports, which traditionally provide essential sustenance to the world's poorest countries, according to Isobel Coleman, Deputy Administrator of the US Agency for International Development (USAID), UrduPoint reported.

In response to this shortage, countries such as the US and Australia have ramped up their wheat production to bridge the gap. However, despite the increased supply, the exorbitant prices have made it impossible for the poorest nations to afford these imports.

Coleman emphasised the severe impact of losing the wheat shipments that typically traverse the Black Sea, passing through the Suez Canal and reaching regions like the Horn of Africa at more affordable prices. This disruption significantly affects food-insecure populations in these parts of the world.

The United Nations-brokered grain exports agreement, known as the Black Sea Initiative, plays a crucial role in addressing the food needs of countries in distress. Coleman underscored its importance but accused Russia of hindering its implementation and even threatening not to extend it.

Russia has repeatedly criticised the agreement, claiming that the provisions related to Russian grain and fertilizer exports have not been upheld due to Western sanctions. Additionally, Russia has expressed concerns that a significant portion of the grain is being diverted to developed nations.

The agreement, established in July 2022 to facilitate the safe export of agricultural products from Black Sea ports during the Ukrainian conflict, includes a memorandum of understanding between Russia and the United Nations to restore Russian grain and fertilizer exports via the Black Sea.

In May, the grain deal was extended until July 17 without modifications. But Russia issued a warning, stating that it would not extend the agreement unless its concerns regarding the implementation of clauses related to Russian agricultural exports were adequately addressed.

-      UrduPoint