Wheat

Black Sea Export Deal Easing Ukranian Grain Flows, Bringing Down Prices

Black Sea Export Deal Easing Ukranian Grain Flows, Bringing Down Prices

The Russian invasion of Ukraine, which began on 24th of February, 2022 hindered the world’s leading grain exporter from shipping any commodity to the global market. With Russia enforcing a naval blockade, Ukraine was unable to ship food grains for 5 long months through its Black Sea ports despite having grains stocked up in the silos.

All this contributed to towering food and fuel prices globally. Such was the severity of the crisis that the United Nations insisted that the agreement between Russia and Ukraine was the only way to cool down prices and avert famines impacting millions of innocent families. And, when the Black Sea Grain Initiative was signed between the two on the 22nd of July, 2022, it felt like there’s finally light at the end of the tunnel.

Since the signing of the agreement on July 22, Ukraine has exported more than 560,000 tonnes of food grains through 21 vessels from its three ports in the Black Sea namely Odesa, Chornomorsk, and Yuzhny. This pacifies the heart that the hard work and round clock negotiations that ultimately led to signing of the Black Sea Grain Exports Deal is finally bearing fruits.

Key Highlights Of This News Article Are:-

  • Ukraine’s Export Of Grains After The Signing Of The Deal
  • Wheat Exports By Ukraine
  • Conclusion

Ukraine’s Export of Grains After The Signing Of The Deal

As per the reports, under the deal signed last month, Ukraine has exported more than 500,000 tonnes of food grains in the first half of august itself. These shipments included 451,481 metric tonnes of corn, 50,300 metric tonnes of sunflower meal, 41,622 metric tonnes of wheat, 11,000 metric tonnes of soya beans, 6,000 metric tonnes of sunflower oil, 2,914 metric tonnes of sunflower seed, and were headed to Turkey, Iran, republic of Korea and china.

Post that, Ukraine’s agro-commodities export remained robust too. If reports of the Turkish Defence Ministry are to be believed, Ukraine has exported a total of 622,000 tonnes of grains and food products from its three ports in the Black Sea since the signing of the agreement.

Wheat Exports By Ukraine

owing to the Russian invasion of Ukraine, the 5th largest exporter of wheat could not send shipments of the commodity to the world. this led to shortage of Wheat Exports worldwide and prices began to rise. however, the situation has calmed down after the signing of the black sea grain export deal. despite the continued shelling and hostilities in the eastern and southern regions of Ukraine, its wheat harvest for the year 2022 is 91% complete at 17.4 million tonnes and as a result of the agreement, ukraine continues to ship wheat to the world through black sea ports and ease global demand.

CONCLUSION

As a result of the Black Sea Grain Deal, Ukraine’s grain exports rose to 30.4 million tonnes in place of 22.6 million tonnes for the 2022-2023 season. While this is far below the normal pace as Ukraine used to export 60-72 million tonnes prior to war, the current grain flows from Ukraine and future prospects are cooling down prices in the global market. All this while indicates initial success of the agreement, more needs to be done to ensure that the Black Sea Grain Export corridor remains open so that continuous flow of agro commodities takes place.

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