Even before the Russian invasion of Ukraine, food insecurity had increased worldwide due to conflicts, climate and economic crises. The war waged by Russia has made matters worse as the two countries alone account for 30% of the world wheat trade. Worse, rising prices and shortages pose a risk of famine and social unrest especially in the poorest countries.
For this reason, this Wednesday, May 18, the Secretary-General of the United Nations, Antonio Guterres, called on Russia to free Ukrainian grain exports in order to be able to effectively combat the world food crisis.
“Russia must allow the safe export of grain stored in Ukrainian ports,” he urged at a ministerial meeting hosted by the United States in New York. “Alternative transport routes” to the maritime exit of this grain, specifically to fill silos in Odessa, “can be explored – although we know that will not be enough to solve the problem,” he added.
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Also release Russian fertilizers
In addition to the release of Ukrainian exports, the UN chief advocates “unrestricted access” for Russian food and fertilizers to world markets. These fertilizers were not hit by Western sanctions against Moscow after the February 24 invasion of Ukraine, but Russia has decided to halt their exports. According to diplomats, their purchase by foreign countries could also be blocked by the measures taken against the Russian financial system.
Antonio Guterres has been negotiating on these two issues for several weeks with Russia, Ukraine, the United States, the European Union and Turkey, which can help clear mines near Ukrainian ports and guarantee shipping traffic. “I’m confident, but there’s still a long way to go. The complex security, economic and financial implications require goodwill from all parties,” he said, declining to say more so as not to jeopardize chances of an agreement.
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$30 billion to fight food insecurity
For their part, the international financial institutions on Wednesday launched an “action plan” with concrete projects to accelerate existing programs, “focused work to meet immediate needs”. The World Bank has therefore announced it will grant $12 billion over the next fifteen months, the majority of which will go to countries in Africa, the Middle East, Eastern Europe and Central and South Asia, the institution said.
In particular, this funding must support projects in favor of agriculture in these countries, “social protection to cushion the impact of rising food prices”, and promote water supply and irrigation projects, the institution explained. It also announced that it has 18.7 billion untapped dollars that will also be dedicated to the projects.
“Total, this represents more than $30 billion available to implement the fight against food insecurity over the next 15 months,” the World Bank noted.
And its President David Malpass added: “Rising food prices are having a devastating impact on the poorest and most vulnerable. In order to inform and stabilize the markets, it is important that countries make clear statements now about future production increases in response to Russia’s invasion of Ukraine.”
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It recommends that countries make “concerted efforts” not only to increase energy and fertilizer supplies, to help farmers increase plantings and crop yields, but also to “abolish policies that block exports and imports (…) or make unnecessary ones.” promote warehousing”.
In New York, US Secretary of State Antony Blinken, who chaired the ministerial meeting on the food crisis, underscored America’s commitment to the fight against hunger and malnutrition. Washington has released “an additional $215 million” to fight food insecurity, he said.
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Money, but also technical assistance
In addition to funding, international financial institutions have signaled that they can use their technical expertise. “This includes accelerating the use of existing tools and programs (…), refocusing current programs, (…) targeting work that addresses immediate needs,” they said in a statement.
Its primary goals include: alleviating fertilizer shortages, immediately supporting food production, investing in sustainable agriculture and promoting free trade.
Even before the war in Ukraine, food insecurity was exacerbated by conflicts, climate and economic crises. According to the UN, 193 million people in 53 countries were acutely food insecure last year, meaning they urgently needed help to survive.
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The Indian embargo, an additional threat
And concerns are growing as India plans to ban wheat exports to ensure food security for its 1.4 billion people after output fell due to extreme heat and soaring prices, a result of the war in Ukraine that cut supplies on the world market difficult. The world’s second largest wheat producer, India, on Saturday (May 14) ordered wheat traders not to make any new export deals without prior government approval. However, export contracts that were concluded before the decree can be complied with.
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The sudden announcement caused chaos at the Deendayal Port Trust (DPT) in the western state of Gujarat, where around 4,000 trucks loaded with wheat were stuck on Tuesday. Four ships, some of which are loaded with around 80,000 tons of wheat, are also waiting to depart.
By then, India had expressed its willingness to support world markets in the event of supply problems caused by the February invasion of Ukraine, which accounted for 12% of world exports. The G7 agriculture ministers immediately criticized the Indian decision and feared a “worsening” of the raw materials crisis. On Monday, when the European market opened, the wheat price broke a new record high at EUR 435 per ton.
Stop of wheat exports: “India’s decision puts a strain on the financial health of importing countries”
(With AFP)
latribune.fr
May 19, 2022 10:57 am