Rising global wheat prices and warning domestic officials

According to the Fars News Agency’s International Economics Group, the world price of wheat has been rising steadily over the past year. According to Bloomberg, $ 114 per bushel has increased in the last year alone. The price of this staple has risen $ 40 in the past month alone. Wheat prices rose $ 6 today and traded at $ 742 per bushel.

Rising commodity prices have been on the market for several years, with FAO experts warning that the era of cheap food is over and countries must prepare for expensive food.

According to the FAO, the factors that increase the price of agricultural products and mainly food consumed by the people are the limited water and soil resources for agriculture in the world, which is becoming less and less.

For the next 40 years, only the research sector can ensure the world’s food security, according to the international body.

The FAO has stated that in the next 40 years, 90% of world food security will depend on the research sector and only 10% on the horizontal development of the agricultural sector.

Other reasons for rising agricultural prices; Climate change, global warming and the spread of unknown diseases include corona. Climate change over the past few years has placed many restrictions on production, global warming has reduced actual production capacity, and reduced crop yields by melting polar ice caps.

The World Food Organization (WHO) has reported that the higher the global temperature, the lower the potential and actual yield of agricultural seeds.

* Corona raises prices for global products

The outbreak of the corona has further exacerbated trade between countries, and the health protocols that govern these exchanges have slowed the flow of exports and imports.

In the current situation, as the situation in Corona has calmed down and economic activities have intensified, the demand for their products has increased.

But more importantly, the countries’ policy is to restrict the export of basic crops, as Russian President Putin announced at the time of the wheat harvest in the past few months, doubling the export duties on the crop, thereby paying more attention to Centralized domestic supply and storage.

This policy applies in most countries, and countries try to produce strategic products domestically and store everything they have in stock.

In such circumstances, our country, which has wheat self-sufficiency in its record, has become a major importer of wheat in the last two or three years. This year, there is a deficit of 6 million tons to import.

Experts say that if the government had set a guaranteed wheat purchase rate of last year, this year’s production would have been sufficient. So instead of subsidizing foreign farmers, the government can prevent foreign exchange outflows and improve food security by supporting domestic production.

End of message / b

You can edit this post