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Why India’s food value-chain needs better risk management instruments amid Ukraine war

30 May 2022

Summary

The last few years proved extremely volatile for the food value-chain due to issues ranging from the pandemic-induced supply chain disruptions to the impacts of climate change on agriculture. To add to the already existing woes, the escalation of the Russia-Ukraine conflict has inflicted a major blow to the foundations of the global food security agenda. Ukraine and Russia are the world’s ‘breadbaskets’ producing more than 30 per cent of the world’s wheat and barley, 20 per cent of the global maize produce, and more than 50 per cent of the world’s sunflower oil. This has resulted in increase in household expenditure on food by 34 per cent over the previous year. The situation is slated to aggravate further with the trade restrictions and sanctions – making the access to these essential agricultural commodities extremely difficult for a host of countries.

Creators/Authors

Nilanjan Ghosh
Dr. Nilanjan Ghosh is Director, Centre for New Economic Diplomacy, Observer Research Foundation, and ORF’s Kolkata Centre. His previous positions at various points in time include Senior Fellow and Head of Economics at ORF Kolkata, Senior Vice President & Chief Economist at MCX >>

Soumya Bhowmick
Soumya Bhowmick is an Associate Fellow at the Centre for New Economic Diplomacy, Observer Research Foundation. His research focus is on sustainable development, economics of globalization and Indian economics. He works closely with the UN Sustainable Development Goals and Ease-of-Doing Business parameters.

Tags

india climate change european union international affairs russia and eurasia economics and finance commentaries energy and resources economy and growth climate, food and environment

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