Daily Current Affairs :20-July-2023
Recently, Russia’s announcement to suspend its involvement in an agreement with Ukraine has caused concerns over the supply of grains amid the ongoing invasion of Ukraine. This essay explores the significance of the initiative, its objectives, and the potential consequences of its suspension on grain exports and global food security.
About the Initiative: Strengthening Food Security
The Agreement and its Significance:
- The deal, brokered by the United Nations (UN) and Turkey, was signed in Istanbul.
- It established the Joint Coordination Centre (JCC), comprising senior representatives from Russia, Turkey, Ukraine, and the UN for oversight and coordination.
- The initiative aimed to ensure an adequate supply of grains, calming markets and limiting food price inflation.
Ukraine: The “Breadbasket of Europe”:
- Ukraine is a major exporter of wheat, maize, rapeseed, sunflower seeds, and sunflower oil, playing an indispensable role in global food security.
- Its access to deep-sea ports in the Black Sea facilitates direct trade with Russia, Europe, the Middle East, and North Africa.
Impact of the Suspension:
Price Pressures on Grain:
- The suspension may intensify price pressures on grains, particularly wheat, as global inventory levels are already at historical lows.
- The disruption of the initiative could lead to volatility in grain markets, causing uncertainty and potential price spikes.
Effects on Import-Dependent Nations:
- Countries in the Middle East and Africa, such as Egypt, Turkey, Lebanon, Sudan, and Yemen, heavily rely on Russian and Ukrainian grain exports.
- The suspension could have a severe impact on these nations’ food security and lead to higher food prices, exacerbating existing challenges.
Challenges for Ukrainian Farmers:
- The suspension poses challenges for Ukrainian farmers who depend on grain exports for their livelihoods.
- Loss of access to key markets may lead to income loss and reduced economic stability in the agricultural sector.
Disruption of Food Production and Availability:
- With the deal suspended, the smooth flow of grain exports from Ukraine to importing countries will be disrupted.
- This could lead to shortages and scarcity of essential food items, affecting food availability and access for vulnerable populations.
Important Points:
- Russia announced suspension of its involvement in an agreement with Ukraine to export grain amid its ongoing invasion of the neighboring nation.
- The deal was brokered by the UN and Turkey, aiming to ensure an adequate supply of grains and calm markets to limit food price inflation.
- Ukraine, known as the “Breadbasket of Europe,” is a major exporter of wheat, maize, rapeseed, sunflower seeds, and sunflower oil, playing a crucial role in global food security.
- The country’s access to deep-sea ports in the Black Sea facilitates direct grain trade with Russia, Europe, the Middle East, and North Africa.
- The suspension could lead to price pressures on grains, especially wheat, due to historically low inventory levels.
- Import-dependent nations in the Middle East and Africa, like Egypt, Turkey, Lebanon, Sudan, and Yemen, heavily rely on Ukrainian and Russian grain exports, making them vulnerable to food price spikes and shortages.
- Ukrainian farmers will face challenges as they lose access to key markets, potentially leading to income loss and economic instability in the agricultural sector.
- The disruption of the agreement may cause volatility in grain markets, creating uncertainty and potential price spikes.
- Food production and availability will be disrupted, leading to shortages and scarcity of essential food items, affecting vulnerable populations’ food access.
- To address the challenges, international cooperation, alternative trade routes, and sustainable solutions are necessary to ensure food security for all nations.
Why In News
Recently, Russia’s decision to halt its participation in the grain export agreement with Ukraine has sparked concerns about the potential impact on food security in the region amidst the ongoing conflict.The suspension of the grain agreement raises questions about the stability of the global food market, as both Russia and Ukraine are major players in grain production and export, and their cooperation has been crucial in ensuring a steady supply to meet international demands.
MCQs about Impact on Global Food Security
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Which country recently announced the suspension of its involvement in a grain export agreement with Ukraine amid an ongoing invasion?
A. Ukraine
B. Turkey
C. Russia
D. The United Nations
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What was the central idea behind the agreement brokered by the UN and Turkey between Russia and Ukraine?
A. Limiting food price inflation
B. Increasing agricultural production
C. Promoting international cooperation
D. Expanding trade routes
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Which region is often referred to as the “Breadbasket of Europe” and plays an indispensable role in global food security?
A. North America
B. Asia
C. Australia
D. Ukraine
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The suspension of the grain export agreement between Russia and Ukraine could particularly impact which group of countries that heavily depend on Ukrainian and Russian grain exports?
A. European nations
B. South American nations
C. Middle East and Africa nations
D. Asian nations
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