ERBIL, Kurdistan Region - World food prices have increased by almost 13 percent compared to February, reaching an all-time high in March, reported a UN body on Friday, as the Russia-Ukraine war continues to take its toll on the global economy.
The Food and Agriculture Organization of the United Nations (FAO) announced their food price index for March on Friday, which reported an increase of 12.6 percent from February, and a 33.6 percent increase compared to March 2021. This is both the fastest rate of increase in 14 years, and the food price index’s highest level since it was established in 1990. The surge in food prices has been mainly contributed to the ongoing Russian war on Ukraine.
Russia announced the launch of a “special operation” against Ukraine - widely seen as a full-scale invasion - on February 24, which immediately affected prices in countries that rely on both neighboring states.
World wheat prices increased by 19.7 percent during March, as Russia has accounted for 30 percent and Ukraine 20 percent of global wheat and maize exports, over the past three years. Maize prices saw a 19.1 percent increase, a record high for the cereal grain, according to the index.
World food commodity prices reached their highest levels ever in March, as war in #Ukraine spreads shocks through markets.
— FAO Newsroom (@FAOnews) April 8, 2022
The @FAO Food Price Index averaged 159.3 points in March, up 12.6% from Feb 2022 and was 33.6% higher than in March 2021.
👉 https://t.co/BxZAlthZKS pic.twitter.com/h6E2vLOTaO
Ukraine is the world’s leading exporter for sunflower seed oil, leading to a massive 23.2 percent increase in the prices of vegetable oil. In contrast to the continuous decline they have been experiencing in recent months, sugar prices rose by 6.7 percent during the month of March, an increase of over 20 percent compared to March 2021.
The report also cited higher crude oil prices as a “driving factor” in the significant increase of global food prices.
A barrel of Brent crude oil neared $140 dollars on March 7, heading towards a 2008 record high before it soon dropped to $130.
The Iraqi government recently announced a series of measures aimed at confronting the global price increase, as well as suspending custom duties on food products.
A new funding initiative titled the Emergency Support Law for Food Security and Development is currently being considered by the Iraqi parliament. The proposed law was first discussed in parliament on March 26 but further talks are yet to be held. The initiative was sent to the parliament by the current government on March 9.
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