Eid al-Fitr Middle Eastern people with expensive food
Muslims in the Middle East are celebrating Eid al-Fitr as the Ukraine war raises prices for a variety of food and basic goods and puts a heavy strain on household budgets in the region, IRNA reported, quoting SP Global.
The Middle East’s high dependence on imported food has made the region feel the pressure of rising prices more than many other regions. Russian wheat exports to the Middle East have risen 45.9 percent over the past year to $ 1,864 a tonne. The price of Ukrainian sunflower oil exported to the region also increased by 28.7%.
The countries most vulnerable to rising global prices in the region are Oman, Lebanon, Egypt, Libya and Tunisia, which are more dependent on food imported from Ukraine and Russia.
Egypt imports 50 percent of its grain and 75 percent of its wheat from Ukraine and Russia. Lebanon has become heavily dependent on wheat imported from Russia and Ukraine since 2020 following the economic crisis and the explosion of its famous port.
What has made matters worse is the imposition of export restrictions by more countries. Tunisia has banned the export of fruits and vegetables, hurting its main market, Libya.
Experts predict that the trend of rising food prices will continue until the end of this year, and even with the escalation of tensions in Ukraine, the situation will worsen, especially since the costs of agricultural production such as chemical fertilizers have increased.
The UN World Food Program has called the food situation in the Middle East critical. High food prices were one of the reasons for the 2011 Arab Spring riots that toppled some governments.
The richer countries in the region, especially those that export oil and gas and have benefited from the sharp rise in oil and gas prices, are in a better position and have been able to provide food reserves. But in general, the Middle East is vulnerable to the global food crisis due to its dependence on food imported from distant lands such as Australia.
“Currently, the global food supply is sufficient for demand and consumption,” said Monica Tutua, an FAO economist. But with disruptions in supply chains and tightening of sanctions against Russia, Russian and Ukrainian exports have declined and the situation is precarious.
He added: “In addition to the increase in prices by food suppliers, transportation costs have also increased and this has led to higher food prices.” With the high price of animal feed, the price of meat has also increased in the region. But at the moment we can not talk about food shortages in the world.
According to the report, Middle Eastern countries have made food security one of their national priorities in recent years. Saudi Arabia exported wheat in the 1990s, but high irrigation costs pushed the country toward imports. It currently benefits from high oil prices and has high grain reserves. Saudi Arabia’s wheat reserves could meet the country’s 11-month needs. Libya, Oman, Lebanon and Iraq have lower reserves than other countries in the region.
Cereal reserves are declining around the world, including in the Middle East. Over the past two years, China has purchased larger quantities of animal feed, more agricultural products have been used to produce biofuels, and more food production challenges have arisen, such as bad weather and the spread of the corona.
According to experts, if this year is a bad year for the production of agricultural products in the world, there will certainly be a problem for the Middle Eastern countries that are dependent on imported food. But if the current forecasts are met, especially rich countries can meet their needs.
The rich countries of this region have taken measures to ensure their food security. Saudi Arabia, for example, has lifted a ban on poultry imports from Thailand and imported red meat from Ireland.
The UAE government established a company in 2020 to increase agricultural production and increase its strategic reserves. In the same year, it bought a 50% stake in a company specializing in the production of animal feed, cereals and dairy products. In 2021, it bought a company active in the field of trade in goods and signed long-term contracts to export food to this country.
“When you talk about food security in the Persian Gulf, it means focusing on getting enough food and providing enough food supplies,” said Tutua, an FAO economist.
He added that Egypt, as the largest consumer of wheat in the region, has managed to continue concluding contracts for imports from Russia. The Egyptian government has earmarked $ 5.56 billion in food subsidies for its people in fiscal year 2022, which will impose a heavy burden on the economy. Egypt’s allies have given billions of dollars to the country to develop its economy. Most Egyptian grain imports come from Russia, Ukraine and Romania.
Finally, while there is no clear vision for an end to the Ukraine war, food security remains a top priority for Middle Eastern governments.