Grain Deal Extension Helps to Limit Global Price Hike — FAO

"The Black Sea Grain Initiative is a crucial and integral part of ensuring movement of supplies of agricultural commodities from the region to the global markets and connecting them to the global value chains," Monika Tothova said

© AP Photo/Khalil Hamra, File

ROME, March 14. /TASS/. The Black Sea Grain Initiative helps to restrain international prices of grain and related products, FAO expert Monika Tothova told TASS on Tuesday.

"Since the Black Sea Grain Initiative was implemented in August 2022, over 24 million metric tons of agricultural commodities were shipped under its auspices. Almost half of the shipped volume was maize (corn), slightly over a quarter was wheat, about 10% combined sunflower oil and sunflower meal, and the rest was other agricultural products, such as barley, soybeans, rapeseeds (canola), etc.," the expert said.

"The shipment of these commodities contribute to stabilizing the world markets, and thus to putting downward pressure on the global price," Tothova noted. "Buyers, including low income countries, benefit from lower prices on the global markets," she said.

"Price levels on the markets not only impact consumer prices, but also influence farmers’ decision to plant in the next year. In the absence of markets - and being able to ship grain via the Black Sea Ports in the Black Sea Grain Initiative - Ukrainian farmers might choose to plant less in the future, which will impact the global supply, and put upward pressure on prices," the expert cautioned.

The Black Sea Grain Initiative "is a crucial and integral part of ensuring movement of supplies of agricultural commodities from the region to the global markets and connecting them to the global value chains," she added.

The grain deal is renewed for sixty days, Russia’s Deputy Foreign Minister Alexander Grushko told TASS on Tuesday.