Ngozi Okonjo-Iweala Hails The Resumption Of Grain Trade
Ngozi Okonjo-Iweala is a Nigerian-American economist, who has been serving as Director-General of the World Trade Organization since March 2021. Mrs Ngozi hails the resumption of grain trade, she discluse this on her twitter handle. “Welcome the departure of the first grain shipment from Ukraine & the resumption of the grain trade. Planned departure of more grain should hopefully bring intl. grain prices down, aid humanitarian purchases & have a positive impact on poor people going hungry in poor countries.”
Research Report from Blooms reporter results that Ukraine is a notable player in global grain and oilseeds export market. And thus, the blockage of exports has contributed to the notable increase in agricultural commodity prices observed since the war started.
The aim of the “grain deal”, signed between Kyiv and Moscow on July 22 2002, was to change this chaotic situation. Under the agreement Russia promised not to attack grain vessels in the Black Sea region. But this promise didn’t last long. Less than 24 hours after the deal was signed Russian missiles struck the critical Ukrainian port of Odesa.
A resumption of the trade activity would release about 22 million tonnes of grains out of Ukraine. It’s also safe to assume that grain orders from Russia to various markets in the world will also increase.
Africa’s biggest wheat importers would benefit the most from a resumption of shipments out of Ukraine’s ports. More generally, the softening in prices would benefit consumers across the world.
In addition, the World Food Programme will be able to source food for donations in struggling African regions, such as East Africa, where there is a bad drought, as well as parts of Asia.