Agri Commodities

Effect of Ukraine-Russia War on Agro Industry

Effect of Ukraine-Russia War on Agro Industry

Russia-Ukraine war has had a huge effect on global agro-commodity market. While the effect of war is clearly visible on global wheat market in particular, it has disrupted the whole agro-commodities market in general. Russia and Ukraine which jointly contribute to 30% of the total wheat production in the world has stopped exporting any of it in the aftermath of the war thereby leading to rise in prices and leading to food crisis. Now, many countries are resorting to ban food export. Wheat is one of the many commodities whose export has been banned by countries. Lately, India has also banned wheat exports and have also restricted export of wheat flour. This was a reaction to rise in prices of wheat in the global market including the Indian market in guise of food security.

 

Countries Restricting Food Exports are Rising

Before the war started in February, only three countries were restricting food exports. However, that has increased to 16 now in the aftermath of the ongoing war. While many countries have been banning export of agro-commodities, the focus has shifted to India in the wake of recent ban on export of wheat. However, this has no base and Indian wheat flour can still be exported freely subject to prior-approval from inter-ministerial committee. Online export of wheat flour is also rampant. B2B e-commerce platforms like Tradologie.com are facilitating seamless export of wheat flour.

Countries & The List of Food Items Restricted by Them in the Wake of Ukraine-Russia Crisis

Argentina banned soybean oil and soybean meal exports, Algeria banned sugar, vegetable oil and wheat derivatives exports, Egypt banned export of vegetable oil, flour and wheat, India banned wheat exports, Indonesia banned palmolein export, Iran banned potato, tomatoes, eggplant and onion exports, Kazakhstan banned wheat and wheat flour exports, Ukraine banned wheat, oats, millet and sugar exports, Russia banned wheat, meslin, maize, barley, sunflower seeds and sugar exports, Turkey banned beef, mutton, butter, cooking oils exports and Kuwait banned chicken meat products, vegetable oils and grain exports; all in the aftermath of commencement of Ukraine-Russia war.

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