The war in Ukraine has created the worst crisis in world food markets in decades. As a result, one after another restriction is being imposed on food exports by many countries. The government is imposing these restrictions because they think they have to protect their people first. As a result, top economists are now concerned that a kind of ‘food nationalism’ is on the rise in many Asian countries. These countries are ignoring the needs of other countries to control their internal markets. Not only the Ukraine war but also unusual droughts and floods have threatened crop production in many countries. As an outcome of such policy as well as natural calamities, the food crisis will continue to grow and food prices will continue to rise in the market.
India recently announced a sharp reduction in sugar exports after banning wheat exports a few days ago. Similarly, the world’s number one sugar producer has decided to export up to 10 million tonnes of sugar by October, and traders will need to get permission from the government before exporting. At the same time, the price of sugar in the international market increased by one percent. The price of sugar in the international market has risen by 13% since January, and the current price is 28% higher than in the same period last year.
Malaysia, on the other hand, announced that it would reduce its exports of poultry and poultry meat from June because of a shortage within the country. Earlier, Indonesia stopped exporting palm oil for three weeks to cope with the domestic edible oil market as palm oil prices skyrocketed. In Malaysia, for example, the price of chicken has been rising steadily in recent months, with consumers being forced to pay a higher price. Malaysia exports 3.6 million chickens every month. Recently, Malaysian Prime Minister Ismail Sabri Yakub said exports would remain suspended until domestic market prices and production stabilize. One-third of Singapore’s chicken demand comes from Malaysia. As a result, there is natural concern in that country. Following Malaysia’s decision, Singapore’s food authorities have had to take steps to curb panic buying in the market. People are advised to buy frozen chickens and buy as much as they need.
In the aftermath of the Ukraine war, Malaysia’s chicken exports are banned, India’s wheat exports are banned and sugar exports are reduced – these are just a few examples of the current food crisis in the world. The overall situation in the food market is critical. The World Bank recently warned that as food prices rise at record rates, billions of people around the world will fall into poverty and malnutrition.
Ukraine is one of the world’s top wheat exporters. But in the world market wheat almost stopped coming from that country. As a result, wheat market prices continue to rise, and panic has spread among countries such as Egypt, which depend on Ukrainian wheat for their food. Millions of tonnes of food grains lie in warehouses in Ukraine. Now the international community should create a “safe passage” to export them without any delay.
Russia says it will ensure food grain exports to Ukraine if the US and Europe lift sanctions on them. So far America has not wanted to hear such a proposal. As a result, Ukraine’s wheat and edible oil seeds are uncertain in the world market. David Bijli, director of the UN Food and Agriculture Organisation said that Russia’s blockade of Ukraine’s food exports was part of a “declaration of war on food security” in the world. He also said, “The world is facing its worst food crisis since World War II.” The world’s 400 million people are more or less dependent on food produced in Ukraine, and the country’s food exports have been cut off. There are also fertilizer problems, drought, rising prices, and energy crises.
There is no doubt that food nationalism is on the rise like political nationalism. Countries are trying to meet their own needs; the needs of others have become secondary. Decades of globalization have created some kind of division in the production process. This is very much natural that- in a country where the production of a product is more convenient than others, they are making it more and many other countries have become dependent on their surplus.
The current food situation is a matter of significant worry for a country like Bangladesh which is largely dependent on the import of much-needed food, including edible oil, wheat, sugar pulses and spices to meet the deficit. If this crisis continues the cost of imports will rise and so will the price of food in the market – which will put a huge strain on the purchasing power of food for a large number of poor people in Bangladesh. Over-reliance on a particular country, like India and Ukraine for many foods could endanger Bangladesh. Bangladesh needs to build some food stocks very quickly. Simultaneously, it has become very important for Bangladesh to take the path of strong diplomacy which may be termed as ‘food diplomacy’. Food diplomacy is urgently needed at the moment to tackle food nationalism. Moreover, imports need to be arranged by contacting other friendly countries. Getting concessions through prompt bilateral communication with them might be helpful in this regard.
However, many economists and think tanks are still reluctant to worry about some countries taking steps to reduce food exports. Imposing such restrictions by some countries on exports is temporary. Many countries have banned food exports and then lifted them again. No country is self-sufficient in food. For some food, they have to depend on others. As a matter of fact, no country can take the path of 100% ‘food nationalism’. But only time could say what might be the actual scenario in the coming days.
The Daily SUN 14-06-2022
