The price of wheat is surging as inflation and shortages force the costs of the commodity even higher. Experts suggest that the price of wheat will increase by over 40% this year.
We need everyone on the globe to be prepared for the increase in the cost of wheat. Wheat prices will rise to $700 per ton this year, a nearly 40% jump from the current $430, the Ukrainian minister of agrarian policy and food, Mykola Solsky, said on Wednesday, as cited by TASS.
“Are we ready to pay $500, $600, $700 per ton? The situation is critical for Asian and African countries, which mostly imported grain from Ukraine,” Solsky added. The economic law of supply and demand is going to be made very clear to most in the coming months. The harvest this year is also expected to be much smaller. “This year we expect a 50% drop from last year’s harvest,” he stated, adding that due to Russia’s ongoing military operation in Ukraine, “the next winter sowing campaign is in jeopardy,” he said according to RT.
Earlier on Wednesday, UN Secretary-General Antonio Guterres said the global community will not be able to fully solve the food crisis without Ukrainian grain and Russian and Belarusian fertilizers, adding that “Russian products and fertilizers should have full and unlimited access to world markets.” Earlier this month, he warned that a fifth of humanity is at risk of poverty and hunger due to the current situation in the grain market. –RT
Western sanctions have also dramatically limited the availability of crops and fertilizers from Russia and Belarus on the global market. With the growth in global grain prices, major suppliers such as Russia, Kazakhstan, and India have temporarily stopped exports to protect their domestic markets.
Concerns over the grain market have been slowly surfacing for a long time, but have become overly apparent in the past few months.