African countries rely on both Russia and Ukraine for the import of food grains. The African Union(AU) themed 2022 as the ‘year of nutrition and food security’, but the impact of climate change, Covid-19 pandemic and the war in Ukraine has had a huge impact on its intended outcome. The United States holds Russia’s blockade of Ukraine’s Black Sea ports responsible for the reversal of the goal as most of the grain destined for Africa goes through the Black Sea.* Fears of famine arose due to a surge in food prices since the war scenario began in February, as a consequence of which, a number of African leaders visited Russia to discuss the impact of the port blockade.
Pakistan is an agricultural country that normally grows enough to meet the needs of its population. The arrival of wheat in the last two years has not played a significant role in curbing the bullish trend in local prices. Pakistan’s flood response centre said ,“A huge stock of wheat for the next 6 months is available along with strategic reserves which is sufficient till next harvesting season.”
Saudi Arabia is among the importing countries hit by disruption to Ukraine and Russia’s grain exports and surging prices of wheat and other commodities.
Saudi Arabia maintains at least 6 months of stock for various grain products to overcome any food shortages.
Food Secretary, Sudhanshu Pandey said on 21st September’22 that,” the government will very soon announce the export quota of sugar for the next marketing year starting October.” Although he did not disclose the quantity of sugar exports that will be allowed for the 2022-23 marketing year, this was mentioned at a Sugar and Ethanol conference organised by Indian Sugar Mills Association (ISMA) and datagro. India’s Sugar Exports stood at 3.8 million tonnes(MT) in 2018-19, 5.9MT in 2019-20 and 7MT in 2020-21.
After the onslaught of Covid, businesses and traders around the world expected 2022 to bode well in their favour. But that doesn’t seem to be the case. Covid already left its mark on the global supply chain which is still vexing international trade. Also, the crisis between Russia and Ukraine added to the problems. Moreover, this year, major agro-based countries around the world are facing adverse weather conditions. All of this has caused food and fuel prices to shoot up and this directly prompted both developed and developing economies to take steps to aid the situation.
Wheat markets could be getting a demand bump in 2022-23, says an analyst.* Tight global rice supplies could result in changing trade patterns in the Indian Subcontinent. On Sept. 9, India imposed a ban on exports of broken rice and a 20 percent export tariff on paddy, brown and white rice with an exception to basmati and parboiled rice. These are the first restrictions that the country imposed since 2011.
Philippines President Ferdinand Marcos Jr. has approved the import of 150,000 Metric Tonnes of sugar to address the shortage of supply and curb rising prices in the country. According to Sugar Order No. 2, posted on the Philippines’ Sugar Regulatory Administration (SRA) website, half of the total import volume, or 75,000 MT, would be allocated to industrial users or companies using sugar in their manufacturing process, while the other half would be given to consumers or the market.
In an effort to keep prices under control, the Indian government, last June, had put restrictions on the export of sugar. The decision was taken in view of the sugar prices back then in the country and was aimed at maintaining domestic availability amid rising food and fuel prices. However, the ‘sugar situation’ seems to be improving and with the beginning of the new marketing year this October, India is set to allow 5 million tonnes of Sugar Exports in India.
India has a long history of agriculture and exporting agricultural products from India has been the main focus for years. Starting to export from India can be a great way to expand your business and give yourself an opportunity to work in the global markets. At a time where the world is getting more connected day by day, it’s important to also be connected to a wider audience. If you operate in the agricultural industry, you might want to consider getting a foothold in the global market by exporting your products. However, you might be thinking about how to go about it, or whether you’re ready. Before you jump into exporting agricultural commodities, here are some insights that might help you along the way.