Question-1: Countries across the world are facing unprecedented inflation due to rise in food prices. Can India insulate itself from such situations in future? Comment.
Answer: The Ukraine war has escalated prices of food and related commodities, especially wheat and oil. Russia and Ukraine are the largest exporters of wheat and their non participation in trade has severely affected availability of food commodity.
Rise in food prices
- Wheat shortage
Wheat grains availability has taken a hit due to the war. Exports from Ukraine has stopped and Russia cannot sustain its exports as a result of sanctions.
- Sunflower oil
Ukraine is the largest exporter of sunflower seeds and sunflower oil. The closure of Ukrainian ports has ceased exports. This has increased price of oil across the world.
- Fertilizer exports
Fertilizer is a important component of agriculture and in turn food security. Sanctions have reduced imports of important fertilizers from Russia and Belarus.
Insulating India from impact
- Reduce dependency
India should encourage domestic production of imported commodities to protect itself from such uncertain conditions.
- Alternative supply chain
Apart from domestic production, alternative supply chain has to be built so that we are not completely dependent on a single market.
- It will be impossible for India to be completely insulated from impact of incidents occuring in far off places due to globalisation.
- India can only reduce the effects by following precautionary measures.
Thus, global food crisis is here to stay, at least until the situation improves in Ukraine. All stakeholders must come together to find a middle path in order to prevent the effects on common man.
Tags: GS 2 ( International relations)
By – Raghunandan