Published: 10th Nov, 2022
Context
Recently, Russia re-joined the Black sea Grain deal which has drawn attention towards the significance and impacts of the deal on Global food supply chains where India is also looking forward for deal’s inception.
About
About the Black Sea Grain initiative:
- The deal was mediated by the United Nations (UN) and Turkey.
- Objective: To provide for a safe maritime humanitarian corridor for Ukrainian exports (particularly for food grains) from three of its key ports, namely,
- Chornomorsk,
- Odesa and
- Yuzhny/Pivdennyi in the Black Sea.
- It aims to tackle rising food prices due to the geopolitical conflict.
Significance of the deal:
- Ukraine is among the largest exporters of wheat, maize, rapeseed, sunflower seeds and sunflower oil.
- Ukraine’s access to the deep-sea ports in the Black Sea enables it to directly approach Russia and Europe along with grain importers from the Middle East and North Africa.
- Amid the Russia-Ukraine crisis, the exports were hit hard since a year and affecting the global supply chains.
- This deal is seen as a facilitator for food supplies and can reduce the inflation and lead to decrease in food prices.
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Do you know? According to the European Commission, Ukraine accounts for 10% of the world wheat market, 15% of the corn market, and 13% of the barley market. With more than 50% of world trade, it is also the main player on the sunflower oil market. |
Why is it important for other Countries?
- Global facilitator of grains: As per the UN Office for Coordination of Humanitarian Affairs, approximately 1 million tonnes of grains have been shipped since the initiative commenced.
- It would address the increasing food prices globally.
- Beneficial for lower-middle-income countries like Egypt, Iran, Sudan and Kenya
India’s say on Black sea grain Deal:
- Supported the deal: India has said the suspension of the Black Sea Grain initiative is expected to further exacerbate food security, fuel and fertilizer supply challenges faced by the world, particularly in the global South.
- Seeking lift on Import bans: India supported for the deal seeing the rise in global food prices and its shortage of Sunflower oils, fuel and fertilizer imports.
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