Poland and Hungary have decided to ban imports of grain and other food from neighbouring Ukraine to protect the local agricultural sector. The European Union has decried the move. In this article, we discuss how this move will affect the Russia-Ukraine conflict and the way forward. This topic is relevant for the IAS exam international relations segment.
EU Slams Poland and Hungary for Banning Ukraine Grain Import
- Most of Ukraine’s agricultural products, particularly grain, are often exported through its Black Sea ports.
- Large amounts of Ukrainian grain ended up lingering in Central European countries due to logistical difficulties after Russia’s invasion closed some Black Sea ports.
- Compared to grain produced in the EU, Ukrainian grain is less expensive. Prices and sales for nearby farmers increased as a result.
- After Poland and Hungary, Slovakia has also joined in halting imports of grains and other food products from Ukraine.
Oversupply of Wheat and Concerns of European Nations
- Farmers in the surrounding nations have complained that Ukrainian grain has flooded their nations, producing a glut that has driven down prices and forced them to suffer significant losses.
- The rising imports of agricultural items from Ukraine cause significant market disruptions in these nations, significant losses for farmers, and societal unrest.
- The size of the increase in goods including cereals, oilseeds, eggs, poultry, and sugar was described as “unprecedented” by European nations.
- With the economy locked in stagflation, the impact of the excess has caused political issues for European states.
Global Food Crisis
- Even before Russia’s conflict, several nations were dealing with a growing food crisis.Â
- Due to supply chain disruptions caused by climate shocks, war, and the COVID-19 epidemic, prices for both crops and commodities have increased. This scenario has gotten worse due to the war in Ukraine.
- The World Bank predicts that global food, fuel, and fertilizer prices would rise significantly and stay high until 2024.
- The increase in food costs has affected almost every economy in the world. Food and energy costs are skyrocketing, causing a crisis in the cost of living across the Western world.Â
Importance of Ukraine for global food security
Source: firstpost
- Ukraine is known as the world’s breadbasket since it exports food grains all over the world.
- Together, Russia and Ukraine provide more than 25% of the world’s wheat supply.Â
- Ukraine accounts for 16% of global exports and is the fourth-largest producer and exporter of maize in the world. Ukraine also generates up to 46% of the world’s safflower and sunflower oils. It is the greatest exporter of sunflower oil in the entire world.Â
- Therefore, it is evident that the war and the sanctions have affected the region that is the world’s breadbasket, which has put additional pressure on food prices.
Reaction by European Union:
- The European Union has denounced Poland’s and Hungary’s import bans on Ukrainian grain and other products, calling the unilateral actions “unacceptable.” Â
- Unilateral actions are unacceptable since the EU alone has the exclusive authority to make trade policy.Â
- Coordination and alignment of all EU decisions are critical during these trying times.
Conclusion: For months, countries in Eastern Europe have issued warnings about the need for financial assistance from the EC to speed up the building of transportation infrastructure and improve connectivity. African countries are still struggling to get food and grain to sustain their growingly undernourished populations because neither the Solidarity Lanes nor the Black Sea Grain Initiative has been successful in supplying food to developing countries.
Poland, Hungary Ban Grain Import from Ukraine:- Download PDF Here
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