According to the Food and Agriculture Organization (FAO) of the United Nations, after Russia’s attack on Ukraine, wheat production in both countries is expected to be low. Meanwhile, India has banned the export of wheat. Due to these, the prices of wheat have increased for the fourth consecutive month in May.

Seasonal factors, including the Russia-Ukraine War that has been going on for more than three months, have created a food crisis in front of the world. All countries are focusing on meeting their needs first. India has also imposed restrictions on the export of some essential things including wheat for this reason. However, this decision of India has had an adverse effect in the global market. After banning exports, global wheat prices have risen sharply and have reached near record high levels.

More than one and a half times more than a year ago

According to the Food and Agriculture Organization (FAO) of the United Nations, after Russia’s attack on Ukraine, wheat production in both countries is expected to be low. Meanwhile, India has banned the export of wheat. Due to these, the prices of wheat have increased for the fourth consecutive month in May. Global wheat prices have risen 5.6 per cent in May and and are currently 56.2 per cent higher than in May last year. This is just 11 per cent below the record level of March 2008.

Global rates of wheat increasing due to these reasons

The Food and Agriculture Organization said, ‘Wheat production in Ukraine is expected to be low due to the fighting. Along with this, there is also a possibility of production affected due to bad weather in many top exporting countries. Amidst all this, India announced a ban on exports. Wheat prices have increased continuously due to these factors. However, there is a good thing that the global prices of coarse cereals have come down somewhat in May. However, even after softening by 2.1 per cent in May, their prices are 18.1 per cent.

Food items soften, grain prices tight

The FAO said that in May, the overall price index has come down by 0.6 percent to 157.4 points compared to a month ago. However, this is only 22.8 percent more than a year ago i.e. May 2021. On the other hand, the price index of cereals has increased by 2.2 percent in May from April 2022 and 29.7 percent from May 2021 at 173.4 points. This shows that even though the average prices of food items have come down, people have not got relief in the case of grains.

Rice is also getting expensive, sugar-maize soft

The organization said that in May 2022, rice prices have also increased for the fifth consecutive month. He said that the quotations have gone up in almost every major market segment, but it is a matter of relief that the prices of Indica, the most traded variety, have increased the least by 2.6 percent, especially due to adequate supply in India. On the other hand, there has been a softening in the prices of maize and sugar. Maize prices fell by 3 per cent in May due to improving crop conditions in the US, seasonal supply in Argentina and the start of the harvesting season in Brazil, but they are still lower than a year ago. are also up 12.9 percent.

Sugar prices increased sharply in the last two months

Indications of adequate availability across the globe and expectation of a bumper yield in India have softened sugar prices. Apart from these, lower ethanol prices and the weakening of Brazilian currency against the dollar have also helped. These factors have reduced sugar prices by 1.1 per cent in May 2022 from a month earlier. Now its price index has come down to 120.3 points. Earlier, global sugar prices had risen sharply for two consecutive months.