New Zimbabwe.com

Russia-Ukraine agreement on grain excites local grain millers

Spread This News

By Staff Reporter


LOCAL grain millers have expressed optimism on supplies of wheat and resultant products after warring Russian and Ukraine agreed a landmark deal that will allow exportation of grain from the Black Sea, which had been cordoned off by the Kremlin.

The deal, signed by the United Nations (UN) and Turkey in Istanbul could avert a food crisis that had threatened most of the third world, which depends on grain from the two countries.

Ports along the Black Sea’s shores had been cordoned off by Russian troops, thereby stopping all exportation of grain, including much needed wheat, resulting in a hike in global prices of the product.

“This is a welcome development that will increase in global supply, possible stabilisation of wheat prices,” said Grain Millers Associations (GMAZ) spokesperson Andrew Kunambura.

“It will, however, take another three years for the world wheat supply to reach the pre-war levels.”

RELATED:

Bread is now going for ZW$600 from a dollar, which currently stands at ZW$400 on the official Reserve Bank of Zimbabwe (RBZ) exchange.

The agreement opens up commercial food trade at the Odesa, Chornomorsk and Yuzhne ports.

Speaking after the ceremony, UN secretary general Antonio Guterres said the deal was beneficial to third world countries which were finding it hard to survive during the current war situation.

“The deal will benefit developing countries on the edge of bankruptcy and the most vulnerable people on the edge of famine,” said Guterres.

The ongoing Russia and Ukraine war has resulted in a steep increase in prices of grain, wheat and oil, products it has a significant global contribution.