Food prices off their highs as Russia releases supply stuck in Ukraine

Global food prices are off their highs as Russia has said that it has decided to open up safe corridor to allow ships to leave Ukraine in return for the lifting of some sanctions.

This means the consignments stuck at those ports would reach the global market where the prices have been rising owing to concerns over supply shortage.

Since Russia invaded neighbouring Ukraine on February 24, 2022, Ukrainian grain shipments from its Black Sea ports have stalled. More than 20 million tonnes of grains are stuck in silos.

The conflict is fuelling a global food crisis with prices for grains, cooking oils soaring along with fuel and fertilizer rates. Russia and Ukraine account for nearly a third of global wheat supplies. Russia is also a key global fertilizer exporter and Ukraine is a major exporter of corn and sunflower oil.

Countries across the world including India are taking measures to curb prices and ensure that there is no stock holding.

Russia opening up humanitarian corridors for vessels carrying food to leave ports combined with measures taken by several countries has brought down the prices of several items to off their highs.

Wheat prices that soared to a 14-year of $12.80 per bushel in the global market after India's export ban have now come down to $11.46/bushel. This is a fall of 10 percent.