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LATEST NEWS UPDATES | Why are global wheat prices rising so much? -Jayati Ghosh and CP Chandrasekhar

Why are global wheat prices rising so much? -Jayati Ghosh and CP Chandrasekhar

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published Published on Jun 13, 2022   modified Modified on Jun 14, 2022

-The Hindu Business Line

The Ukraine war is not the sole driver of global wheat prices. Speculative activity has played a bigger role and policy inaction on that front can prove fatal

The global food crisis has now grown to such proportions that everyone is talking about it (even though world leaders are doing relatively little about it). It has become an article of faith to blame the war in Ukraine for the supply disruptions that have led to dramatic price increases in global food grain markets, which are now impacting food importing countries as well as poor populations across the world.

Certainly, this war has been a catalyst for the recent spikes in food prices — but seeing that as the only cause is not just simplistic; it risks policy inaction to address some of the other factors, that can be controlled. The latest Food Outlook for June 2022, just published by the Food and Agriculture Organization, repeats the concerns that are now being widely voiced.

Because of “soaring input prices, concerns about the weather and increased market uncertainties stemming from the war in Ukraine, FAO’s latest forecasts point to a likely tightening of food markets and food import bills reaching a new record high.”

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The Hindu Business Line, 13 June, 2022, https://www.thehindubusinessline.com/opinion/why-are-global-wheat-prices-rising-so-much/article65524382.ece


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