Global food commodity prices rise after Russia and India’s actions, fueling food crisis

According to the UN Food and Agriculture Organization (FAO), global food commodity prices, including rice and vegetable oil, have risen for the first time in months. This increase was attributed to Russia’s withdrawal from an agreement that allowed Ukraine to ship grain worldwide, and India’s restrictions on some rice exports. In July, the FAO Food Price Index, which monitors monthly changes in international food commodity prices, went up by 1.3 percent compared to June, driven by higher costs for rice and vegetable oil. This uptick follows a period of falling prices after record highs in the aftermath of Russia’s invasion of Ukraine, which disrupted supplies from both countries, exacerbating a global food crisis.

The impact of these price shocks has been severe, leading to increased inflation, poverty, and food insecurity in developing nations heavily reliant on food imports. Russia’s departure from a UN and Turkey-brokered deal that protected ships carrying Ukraine’s agricultural products through the Black Sea has added new risks to the situation. Russian attacks on Ukrainian ports and grain infrastructure have further affected global wheat and corn prices, resulting in a 1.6 percent increase in international wheat prices in July, the first in nine months.

Additionally, India’s ban on certain varieties of non-Basmati white rice has caused concern, leading to hoarding of the staple in some regions. This restriction was imposed due to an earlier-than-expected El Niño causing drier and warmer weather in parts of Asia, which is expected to harm rice production. Consequently, rice prices rose by 2.8 percent in July and 19.7 percent since the beginning of the year, reaching their highest level since September 2011.

The combination of these factors has raised alarms about food security, particularly in regions such as Africa, the Middle East, and Asia, where millions are already struggling with hunger. The global community continues to face challenges in recovering from the repercussions of disrupted food supplies and rising prices, and urgent measures may be required to address the escalating food crisis.