Ukrainian farmers are not expected to reduce the area of winter wheat they sow for the 2024 harvest despite higher logistics costs due to the wartime export crisis, a senior farming official told media on Tuesday.
Ukraine is a major wheat producer and the demise of the Black Sea corridor used to safely export grain during the war spurred speculation that farmers could sow less wheat because of shrinking profit margins due to costlier export routes.
This revelation is a welcoming sign for Pakistan and other cash-strapped nations, especially in Asia and Africa, which have been facing a severe cost of living crisis amid rising inflation, as they spending a huge chunk of foreign exchange on expensive wheat export.
Higher production in Ukraine will ensure reducing the chances any massive surge in wheat prices next year, indirectly allaying the fears causing the rush to buy the required stock among different countries, which boosts prices due to higher demand.
But one mustn’t forget that the wheat flour prices have skyrocketed since the harvesting of crop earlier this year which saw an increased production, which means a combination of hoarding and smuggling is manipulating the market at the cost of the people. Meanwhile, the depreciation of rupee thanks to the conditions set by the International Monetary Fund (IMF) have made the imports expensive for Pakistan although the country is able to reduce trade deficit with a margin. But the paucity of foreign exchange means Pakistan needs even bigger cut.
