(Bloomberg)-
The shock wave of the global crop market due to Russia’s invasion of Ukraine is now spreading on store shelves.
Concerns over rising sunflower oil prices have triggered bulk purchases in Turkey over the weekend, as footage of citizens trying to get cheaper cans of oil at a store has become viral. In Egypt, the world’s largest wheat importer, prices for unsubsidized bread have skyrocketed over the past week.
The war has already raised wheat prices by nearly 70% in Chicago this year and could disrupt global food trade-Russia and Ukraine are important suppliers of grains, vegetable oils and fertilizers, and supply disruptions are everywhere. The world that means to be felt. Wheat prices reached the levels last seen during the 2008 global food price crisis, causing widespread protests and the United Nations Food Price Index set a record in February.
Read more: Food prices set a record and now the war will make it much worse
In Turkey, sunflower oil is the main cooking oil and an important component of food spending. The image of 18 liters of tin selling for 989 lira ($ 69) spurred discussions about living costs, but the item wasn’t available at all on the websites of some grocery chains.
Concerns about sunflower oil prices are related to imports stagnant on ships in the Sea of Azov, on the northeastern tip of the Black Sea, said Ahmet Atiti, secretary general of the Vegetable Oil Industry Association.
“Russia should let go of those ships,” Atiti said. The group sent a letter to the Ministry of Trade earlier this month, warning that current supplies may only last until mid-April.
A total of 18 Turkish commercial vessels are waiting at the Russian ports of the Don River and the Sea of Azov, subject to anonymity as Turkish officials are not allowed to speak publicly to Bloomberg on this issue. talked. Turkey is in contact with Russia to resolve the issue, officials said.
Turkey’s inflation has already been at its highest level in 20 years, and the last spread of global food price hikes 10 years ago has caused protests and political instability in many parts of the world.
In Egypt, bakeries say the price of unsubsidized bread is rising because of the higher costs since the invasion of Ukraine. According to Khaled Sabri, a member of the bakery division of the Egyptian Chamber of Commerce, packs of five flatbread breads are now available for sale in the Cairo region for about £ 7.5 ($ 0.48).
Read: Ukrainian War Spurs Bread Prices Rise For Some Top Wheat Importers
European Union trade groups have warned that sunflower oil could be depleted by a similar time, and the lost amount from Ukraine cannot be offset by a sudden notice.
“In the short term, global market food prices should be expected to rise further in all uncertainties,” the Agricultural Market Information System said in a report. “This will increase global food insecurity.”
EU sunflower oil supply could be depleted by April due to Ukrainian war
Ukraine and Russia together make up about three-quarters of the world’s exports of sunflower oil. According to UkrAgroConsult statistics, prices in Ukraine have risen by about 50% compared to June. The last date was February 24, the day of the intrusion.
According to official data, Turkey’s vegetable oil imports exceeded $ 1 billion in 2021. Ranked as the number one flour carrier in the world, the country last week strengthened its authority over some crop exports and empowered the Ministry of Agriculture to make “regular arrangements” as needed.
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