Food price crisis in the wake of the war in Ukraine – Expert hearing

The European Union’s European Economic and Social Committee (EESC) is preparing an own-initiative opinion on Food price crisis: the role of speculation and concrete proposals for action in the aftermath of the war in Ukraine.

FAO Senior Economist Upali Galketi Aratchilage contributed to an expert hearing organized by the EESC on the role of food price speculation considering the multiple crises currently unfolding on a global scale.

The aim of the EESC’s opinion is to analyze the situation in more detail; gather experts' views on the impacts of commodity speculation on food price increases and food security worldwide; and provide civil society's recommendations on policy measures to address excessive price speculation and increase market transparency.

Aratchilage provided an overview of the rising price of food (cereals), fuel and fertilizer, explaining the distinct factors that have led to substantial supply chain disruptions, uneven recovery, and a sharp rise in food commodity and global energy prices. He warned: “Affordability has become an issue, both for producers and consumers. Producers now even tend to lose when they engage in agricultural activities.”

His presentation was followed by a discussion with other panelists and experts on the topics of trade, food price inflation and market transparency.

More information on the impact of the war in Ukraine can be found here.
More information on the food price index can be found here.