World Food Prices Skyrocket Amid Russia Ukraine War

World Food Inflation: Inflation in February 2022 rose 20.7 per cent as compared to February 2021. As per latest data by Food and Agriculture Organisation (FAO), inflation rose 3.9 per cent from January 2022.

economic crisis, economic crisis in india, economic crisis around the world, economic crisis all over the world, economic crisis after covid 19, economic crisis and financial crisis, economic crisis and inflation, indian economy, inflation , inflation in india, oil prices in india, oil prices, petrol price, diesel price, russia ukraine war — Understand what is wrong with our economy here (File Photo)

New Delhi: World food prices hit new highs in February 2022 led by rising vegetable oil and dairy products prices. According to a report by Reuters, the World Food Inflation in February 2022 rose 20.7 per cent as compared to February 2021. As per latest data by Food and Agriculture Organisation (FAO), inflation rose 3.9 per cent from January 2022.

The Food and Agriculture Organisation is headquartered in Rome, Italy, and works on defeating global hunger and providing food security. The report also said that the data was collected before the Russia Ukraine war broke out and the actual figures may be higher.

The higher inflation has been credited to poor crop conditions and reduced exports in the report. Also, higher energy and fertiliser costs have also been stated responsible for the upward push in the food prices.

Real Situation May Be Worse

As stated above, the data was collected before Russia launched military attacks on Ukraine, disrupting the supply of various commodities including oil and wheat. The real impact may be much worse.

According to the report, Russia and Ukraine combined export over 29 per cent of the total wheat to the world. Also, they import over 19 per cent corn and 80 per cent of the sunflower oil. The war in Ukraine has pushed commodity prices higher.

The price of wheat, according to the report, rose over 5 per cent to the highest levels in 14 years. The wheat market, on the whole, rose over 40 per cent in the last week.

Traders have expressed reservation over sending shipments to Russian ports. Ukrainian ports have been shut down for trading. One of the biggest agricultural merchant Louis Dreyfus, has suspended trading with Russia for its aggression in Ukraine.

In the coming days, the prices of agricultural goods are expected to rise further, the report said.