How the Russia-Ukraine war may affect India’s platter
India Today
The ongoing Russia-Ukraine war and the consequent supply chain disruptions have aggravated concerns about food affordability in India.
In a country where an average household spends two-thirds of the daily income on buying a vegetarian meal, rising prices of key ingredients following Russia’s invasion of Ukraine will make Indians feel the pinch. This may lead to people having little left to spend on other essential items like health and education.
Most people in India depend on agriculture for their livelihood and hence, food availability is not a big problem. However, affordability still is. The Russia-Ukraine war and the consequent supply chain disruptions have only aggravated this concern in India.
Sanctions on Russia, one of the world’s largest wheat and sunflower oil producers, have led to a spike in wheat and edible oil prices in India as well. These are the two components that form the heart of an Indian platter.
Besides, Russia is also the world's third-largest crude oil producer, and the ongoing sanctions on the country have sent strong headwinds into the global oil market. Brent crude is trading almost consistently above USD 100 a barrel.
The subsequent price rise in the retail market is also on the ground now. Petrol and diesel prices in India have risen seven times in the last eight days, pushing the cost of petrol above Rs. 100 a litre in Delhi on March 29.
The surge in fuel prices directly affects the prices of food items, especially perishable ones, due to the rise in logistic costs. Together, food items and petroleum products account for one-third of the wholesale inflation, and food items alone constitute more than one-third (39.1 per cent) of the retail inflation.
The 2021 Global Food Index report showed that out of 113 countries, India ranked 29 in terms of food availability, and ranked 40 in terms of natural resources and resilience. However, in terms of affordability, India was in the 80th position.
