PM Kadhimi sheds light on soaring food prices in Iraq

ERBIL, Kurdistan Region - Iraqi Prime Minister Mustafa al-Kadhimi on Sunday held an emergency meeting devoted to discussing food security in the country as the escalating Russian invasion of Ukraine drives up food prices in Iraqi markets.

The meeting focused on “ensuring food security and the ministries' readiness to achieve that in the light of the crisis of the Russian-Ukrainian war,” read a statement published by the PM’s office. 

To take the necessary measures on the matter, Kadhimi directed the three ministries of finance, trade, and agriculture to put the issue of food security and securing strategic storage on the ministerial economic council and the council of minister’s agenda for this week.

Russia’s invasion of Ukraine, which continues into its 11th day, has led to a significant increase in food prices in Iraq, as well as a spike in global wheat and oil prices. 

A Kurdish trader on Saturday said the demand for flour purchases has “increased by 500 tons” since the war broke out in Ukraine, with the Kurdistan Region fighting off a shortage of flour by lowering the price of domestically produced flour.

“The price of one ton of imported flour has increased by $50, but in return, the price of one ton of domestic flour has fallen by about $100,” Latif Bakir told Rudaw’s Bahroz Faraidun.

Russia is the world’s top wheat exporter and Ukraine is known to be the breadbasket of Europe, with the Middle Eastern states heavily relying on Ukrainian agricultural products.

Iraq is a conundrum when it comes to wheat and flour, making it among the world’s largest wheat and flour importers often purchased from Turkey. Ankara stands second on the list of destinations of wheat exports from Russia. 

The price of sunflower seed oil has also doubled in Iraq and the Kurdistan Region with Moscow and Kyiv being key suppliers of the product.