Russian Center warns of a wave of price hikes in Arab countries

January 11, 2021
Russian Center warns of a wave of price hikes in Arab countries Russian Center warns of a wave of price hikes in Arab countries

Dubai United Arab Emirates:- Despite the wave of high prices that swept the world due to the Corona virus, the Arab world will face a new rise in food prices during the year 2021, according to forecasts by the Russian "Sofikon" center.

The Russian Center said that the wave of high prices will include bread and a number of foodstuffs due to several factors, most notably the decrease in grain exports in Russia, which is the largest exporter of them in the world.

The report said that there will be a decrease in Russia's wheat exports from 40.8 million tons to 36.6 million tons in the season 2020-2021, meaning that Russia will export in the remaining period until the end of the season, in July 2021, half of what it exported in the first period of the season.

According to the report, this will lead in 2021 to the possibility of a repeat of the record increase in bread prices, as happened in the years 2010-2011, according to "Russia Today".

Russia is the largest exporter of grains in the world, and despite the drought this year it harvested 133 million tons of grain, including 85.7 million tons of wheat, which is more than the year 2019, while exports from July to December of 2020 reached a record of 30.2 million tons of Cereals, including 25.4 million tons of wheat.

Due to the increase in domestic food prices, the government will impose additional duties on grain exports, starting from February 15, 2021, while Russian wheat prices rose, for the week before the last of December 2020, to their highest levels in 4 years, at $ 260 per ton, and is expected to rise. Those prices. "

In Ukraine, due to the drought, the grain yield for 2020 decreased by 7 million tons compared to last year, and exports of grains and beans from the beginning of the 2020-2021 season until January 1 of this year decreased by 4.5 million tons.

Bread prices are expected to rise by 20%, at a time when livestock farmers in the country called on the government to restrict corn exports to secure the needs of the local market.

95% of Egypt's imports of wheat, which is the largest importer of wheat in the world, come from the Black Sea region, including Russia, Ukraine and Romania, and in the second half of 2020, Egypt purchased 6.3 million tons of wheat from this region (an annual increase of 26). Percent) of total exports, which amounted to 6.61 million tons (an increase of 7%).

The rise in the prices of cheap Black Sea wheat will severely affect the budget of Egypt, Jordan and the entire region, and may lead to either a deficit in the budget, if the government continues to support grain purchases, or an increase in the price of bread.

The report concluded that food prices will rise dramatically in 2021, which threatens to increase social tensions, and the possibility of protests around the world, and that Arab governments' attempts to compensate for the high prices through subsidies could further destabilize government budgets. , Already suffering from impotence to no avail.

And added, "It is possible that global food inflation will be a result of central banks' printing in the United States of America, the European Union, Japan and other Western countries for trillions of dollars, the euro, the yen and others without cover, which has now begun to move from virtual assets to in-kind assets, primarily in the materials sector." Food. This theory confirms the high demand for real estate worldwide. "

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