Page 10 - The Indian EYE 040723

OPINION APRIL 07, 2023 | The Indian Eye 10

Improving Global Food Security:

THE IMPACT OF THE BLACK

SEA GRAIN INITIATIVE

RICHA KUMARIA

lobal food security has been
significantly impacted due to
Gthe ongoing conflict between
Russia and Ukraine. Rising food in-
flation and reduced availability of key
commodities are some of the major
concerns. To address these challenges,
the Black Sea Grain Initiative was in-
troduced, which has played a vital role
in bridging the demand and supply
gap and providing a degree of stability
to global food prices. Given the signif-
icant consequences of non-coopera-
tion, the continuation of this initiative
is critical to safeguard the future of
global food security. On 22 July 2022, the United Nations (UN) and the Republic of Türkiye brokered the deal between Russia and Ukraine
To alleviate the effects of the con-
flict, the Black Sea Grain Initiative
was introduced to regulate food sup- has significant repercussions, includ- plied approximately 20 per cent of the million people around the world face
ply. With Ukrainian grain reaching ing disruptions in grain exports, re- global barley supply and 18 per cent hunger and malnutrition.
global markets and Russia’s recent duced global availability, and endan- of maize (corn) supply. Additionally, The current crisis, coupled with
decision to renew the deal for an ad- gered food security in several nations. Russia is a major stakeholder in the the challenges outlined, presents a sig-
ditional 60 days, it necessitates an global fertiliser market, being the top nificant threat to global food security.
examination of the initiative’s impact Russia and Ukraine are consid- exporter of nitrogen (N) fertilisers and As the global food system has become
on global food security. Amid debates the second leading exporter of potas- more fragile and vulnerable, the Black
over multilateralism, it is also impera- ered “Global Breadbaskets”, as sic (K) fertilisers in 2021. It was also Sea Grain Initiative has assuaged the
tive to recognise the benefits of coop- they are significant net export- the third leading exporter of phospho- demand–supply deficit to a certain ex-
eration in addressing non-traditional rus (P) fertilisers in the same year. tent and provided a degree of stability
security challenges, as evidenced by ers of agricultural commodities, The high levels of exports from to global food prices.
this initiative. including various cereals and Russia and Ukraine reflect a strong The Initiative has enhanced
On 22 July 2022, the United global dependence on these countries. global food security by increasing the
Nations (UN) and the Republic of oilseeds. According to the Unit- Nearly 50 countries depend on them availability, affordability and accessi-
Türkiye brokered the deal between ed Nations Food and Agriculture for at least 30 per cent of their wheat bility of key food commodities. Since
Russia and Ukraine to establish a safe imports, with 26 countries sourcing the commencement of the Initiative in
humanitarian corridor for the trans- Organization (FAO), in 2021, over 50 per cent of their wheat im- August 2022, more than 1,600 vessel
portation of grains and fertilisers from the two countries accounted ports from these two countries. This shipments have transported 24 million
the ports of Chornomorsk, Odesa and heavy reliance is particularly evident metric tonnes (MMT) of export com-
Yuzhny/ Pivdennyi. The agreement for almost 30 per cent of global in the Middle East and North Afri- modities, including wheat, corn, bar-
aimed to address the growing global wheat exports and 78 per cent ca (MENA) region, where countries ley, sunflower oil and soybeans. Corn
food insecurity concerns, rising prices such as Lebanon, Libya, Oman, Ye- and Wheat constitute 77 per cent of
and facilitate the unimpeded export of of global sunflower oil exports. men, Tunisia, Jordan, and Morocco the total exports. The increased sup-
food, sunflower oil and fertilisers from are heavily dependent on Russia and ply of food commodities through the
the three ports. In the same year, Russia was the Ukraine for their food supply. Initiative has had a causal effect on
The relevance of the Black Sea top global wheat exporter, shipping The abrupt exit of two key play- global food prices, with the UNFAO’s
Grain Initiative can be explained by 32.9 million tonnes of wheat and mes- ers from the global food market had Food Price Index declining for the
two contextual factors. First, through lin, which is equivalent to 18 per cent a significant impact on food prices, 11th consecutive month in February
an assessment of Russia and Ukraine’s of global shipments. Ukraine, mean- as evidenced by the UNFAO’s food 2023, dropping 18.7 per cent from its
pivotal role in the global food security while, was the sixth largest wheat ex- price index which reached an all-time peak in March 2022. The Initiative
nexus, making their cooperation vital porter, shipping 20 million tonnes of high in March 2022. The absence of has also played a critical role in re-in-
in ensuring stable and secure food wheat and meslin, accounting for 10 Russia and Ukraine from global food vigorating port activity in the region,
supplies. Second, an assessment of per cent of the global market share. markets must also be contextualised reducing transportation time and im-
how the absence of this cooperation Before the pandemic, they also sup- in light of the reality that nearly 828 Continued on next page... >>

www.TheIndianEYE.com