On April 8, the Food and Agriculture Organization (FAO) of the UN said that world food prices hit a record high in March. Russian invasion of Ukraine has had the greatest impact on the markets for staple grains and vegetable oils.
Russia and Ukraine are major suppliers of the world’s breadbaskets. These two countries account for a large share of global exports of several major commodities such as wheat, vegetable oil and corn. Sanctions on Russian goods means less exports going out of the country. Ukrainian shut down of agriculture and ports are half closed, experts believe that there will be a food gap of 20 million tons; Filling this gap by other countries will be difficult.
If the Russia-Ukraine war continues, food prices will continue to rise, and more people would suffer starvation. FAO’s Food Price Index, a measure of the monthly change in international prices for a basket of foodstuffs, reached a record high in February and soared 12.6% to a high of 159.3 points in March. The United States accuses Putin of creating this global food crisis. France has also warned that the war would increase the risk of global famine.