Jordon Feels The Tremors Of Russian War With Ukraine
Jordan–Global trends are shaking up costs of commodities everywhere and Jordon isn’t immune to this. While the Jordanian government had reassured that there is enough for everyone, the increasing prices of fruits and vegetables are not helping the Jordanians one bit.
Probably, it was the US aid that has buttressed the economy for so long, with increasing inflation and geopolitical upheavals in the last one decade. Another wheat staple economy, Jordon has been trying to become self-sufficient by growing their own wheat as war in Ukraine has damaged the prospects of ready imports from Romania too. The supply has been subsidized and prices maintained.
Anwar Al Ajarmeh, head of the state-owned Jordanian General Company for Silos and Supply, told state television late on Monday that stocks of wheat — mostly imported from Romania — are enough to last for eight months, while barley stocks would last five months. He expected rising wheat prices on the international market to more than double Jordan’s wheat import bill to $2.5 billion this year — compared with $1.1 billion last year. However, prices of most fuels and foods continue to rise sharply. Subsidies on home electricity were also lifted in April.
Food security is something that cannot be immediately achieved as the economy runs on 95percent wheat and 75percent of rest of the products imported. Sugar prices have also risen as their main exporters in Brazil have raised their own prices. Rice rose 10 cents to $1.92 a kg while cooking oil rose 30 cents to 2.90 a litre. Market dynamics show that there is an overall 30 percent increase in prices of each commodity.
As of now, the government claims that there is enough wheat stock for 15 months and barley stocks for 11 months to meet the needs of the general public. Jordan imports barley from Australia, France, Germany, Romania and Argentina. The two warring countries are also key suppliers of barley, sunflower seed oil and corn, among other products, with Ukraine alone making up almost half of exports of sunflower oil. However, prices everywhere are bound to rise as the tremors of the war travel across the globe.