Blocking wheat exports from Ukraine is forcing importers to pay more in cash

Russia is not only fighting against Ukraine, but is destroying its economy by blocking ports and exports, and threatening the civilized world with famine and another wave of refugees due to disruptions in wheat supplies.

The world community and international organizations, including the United Nations, should be more determined to block Ukraine’s ports and routes in the Black Sea, but after 96 days of war and the threat of famine, the EU, US, UK and importing countries are just beginning to discuss unblocking options. including by military means.

After the restriction of wheat exports by India, prices on the physical market rose sharply. The Pakistani agency TCP purchased 500,000 tons of food wheat (presumably Russian-made) at a tender in June-July for $ 515 / ton CIF. Despite international sanctions, the country’s authorities have decided to import oil and foodstuffs from Russia, including 2 million tons of wheat in cash, as currency settlements are currently difficult.

Bangladesh has also announced a tender for the purchase of wheat, but canceled it due to high bid prices and asked India to supply it.

Sources in the Indian government say that after the ban on exports, the government received requests from several countries to supply more than 1.5 million tons of wheat. Thus, Bangladesh this season (until March 2022) bought a record 4 million tons of wheat in India compared to 1.2 million tons imported last year. Egypt, the world’s largest importer of wheat, has requested the supply of 500,000 tons of wheat through diplomatic channels. Buyers of Indian wheat also include Jamaica and several Asian countries. In addition, the UN has sent a request to India for grain supplies to Uganda and Ethiopia.