The global food crisis is taking a serious turn as grain and sugar shortages are brought about by the US Proxy war That has impacted worldwide food security. The actions of the US and allies have caused more nations to limit food exports, increasing food prices domestically.
Russia-Ukraine War Impacts Global Food Crisis
The price of sugar will increase as producers consider export restrictions to lessen the impact of higher prices of domestic food commodities, reported RT.
A global pandemic that had earlier affected a majority of global supply chains has been worsened by the actions of the western alliance, like illegal sanctions.
This conflict brought about by a western agenda bringing Moscow and Kyiv to blows has lessened the global grain supply; they are the largest suppliers, cited Hi India. It was never taken into account by Washington.
Several nations have placed limited exports on other key products and commodities that seriously affected food security for all, and even agricultural products are expected to rise to an all-time high.
Kazakhstan announced a six-month hiatus on its white and cane sugar exports as inclusion in the expected sugar and grain shortages.
Even though India is thinking of limiting the export of sugar due to the crisis in six years, Delhi does not want an increase in its prices. India will put on hold about 10 million tons for the exports of the season, noted The Press United.
Sugar Producers Take Drastic Steps
According to Reuters, sugar cane mills in Brazil, the world's largest producer and exporter of sugar, have canceled sugar export contracts and made the switch production to ethanol to take full advantage of high energy prices.
These cancellations will deprive the global supply of 400,000 tons of raw sugar; as an off-shoot of the worsening food crisis.
Pakistan banned sugar exports completely earlier this month, citing severe inflation fears. Russia blocked sugar exports till the end of August in March.
Darin Friedrichs, the founder and market research director at Sitonia Consulting, based in Shanghai, spoke to the SCMP in a statement saying that in the case of sugar, it's relatively simple for Brazilian mills to shift to ethanol production if somehow the economics make sense, which could affect sugar prices internationally.
Adding to higher food and energy prices, an increased focus on the utilization of food for manufacturing fuel.
The UN is worried about how the food crisis will affect countries globally Early in the week, the head of the IMF, Kristalina Georgieva, gave a dire warning about how the global economy will have its worst ordeal after World War Two.
The UN Secretary-General Antonio Guterres stresses global hunger levels are their highest ever. These shortages will impact people with a doubled food insecurity in only two years, with 135 million compared to pre-pandemic 276 million.
Though Dong Xiaoqiang, commercial head of AB Sugar China, explained that fewer sugar supplies are expected will not happen.
India and Thailand will increase sugar output for 2022, and he stressed that not all producers have canceled, but prices will rise. Worries over an oncoming global food crisis with grain and sugar shortages resulting from the US proxy war in Ukraine could have been avoided, but the western alliance ignored warnings unwisely.