Black Sea Grain Initiative faces collapse, global wheat supply threatened by 10% shortfall

In a concerning development, the Black Sea Grain Initiative has taken a hit, potentially leading to significant global consequences. The former Indian Ambassador to the World Trade Organisation (WTO), Jayant Dasgupta, warns that the termination of this initiative could result in a total availability of wheat being approximately 10 percent less than usual. This decrease in supply could have far-reaching effects on the global wheat market, causing prices to soar and impacting food security in vulnerable regions.

Ukraine, a major player in the wheat market, has been significantly affected by the Black Sea Grain Initiative's disruption. Historically, Ukraine has been responsible for exporting around 10 percent of the world's traded wheat. The country has also played a significant role in corn exports, making its presence vital in the global grain trade.

The initiative's termination has particularly affected the Ukrainian ports of Odessa, Cherno Mosk, and Denny, which have been instrumental in exporting wheat. However, Ukraine is not entirely reliant on these ports; it has also been utilising its land borders and railway networks for wheat exports and has been using three Romanian ports - Constanta, Galata, and Andrea - to facilitate its grain shipments.