Will Russia-Ukraine deal ease global food crisis?
- July 24, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Will Russia-Ukraine deal ease global food crisis?
Subject: Economy
Section: External sector
Context:
In their first major deal since the February 24 war began, Russia and Ukraine on Friday agreed to resume grain exports from Black Sea ports as part of a deal negotiated by the United Nations and Turkey.
Why is the agreement important?
- Russia and Ukraine together account for more than a quarter of the world’s wheat supplies.
- Russia’s share in the global exports of wheat, the world’s most widely grown crop, is some 20% according to 2020 figures, while Ukraine accounts for 8%.
- About 50 countries depend on Russia and Ukraine for more than 30% of their wheat imports.
- Besides wheat, Ukraine is the world’s eighth largest producer and fourth largest exporter of corn, accounting for 16% of global exports.
- Further, Ukraine, which produces up to 46% of sunflower-seed and sunflower oil is the world’s largest exporter of sunflower oil.
What are the terms of the deal?
- According to the deal, a joint coordination centre will be set up in Istanbul comprising officials and military personnel from Russia, Ukraine and Turkey, along with UN representatives. These officials will check the vessels going to Ukraine’s ports to make sure that they don’t carry any weapons.
- The agreement doesn’t call on Ukraine to de-mine its southern waters. But specific routes from Odesa and other Ukrainian ports would be earmarked for the ships with grain to sail to Turkey’s Bosphorus.
- The plan is to allow Ukraine to export five million tonnes of grain a month, close to its pre-war level. As part of the UN framework, Russia is also expected to ramp up its grain and fertilizer exports
Top Wheat producing countries – China,India,Russia,US
Top Wheat Exporting countries – Russia,Canada,US,France.Ukraine ; India not in top 20
Top Corn producing countries – US,China,Brazil,Argentina,Ukraine,India
Top Corn Exporting countries – US,Brazil,Argentina,Ukraine
Top Sunflower Oil producing countries – Ukraine, Russia, Argentina
Top Sunflower Oil Exporting countries – Ukraine,Russia,Turkey . India- top importer
Top Wheat producing states in India – UP,Punjab, Haryana, Madhya Pradesh, Rajasthan
Top Corn producing states in India – Andhra Pradesh, Karnataka, Rajasthan
Top Sunflower oil producing states in India –Karnataka, Andhra Pradesh, Maharashtra
What is UN Food Price Index?
- It was introduced in 1996 as a public good to help in monitoring developments in the global agricultural commodity markets.
- The UN Food Price Index (FFPI) is a measure of the monthly change in international prices of a basket of food commodities.
- It measures changes for a basket of cereals, oilseeds, dairy products, meat and sugar.
- Base Period: 2014-16.