Global food import costs likely to reach $2 trillion

 The Food and Agriculture Organization of the United Nations has said in a report that 'global food import costs are likely to reach a record high of nearly $2 trillion this year'.

According to Arab News, this is higher than previously expected as the new forecast of $1.94 trillion would represent a 10 percent increase from 2021's record level.

However, according to the latest Food Outlook report, growth is expected to slow in response to higher food prices and currency depreciation against the US dollar.

Although prices have fallen slightly, the war between Russia and Ukraine continues to affect the world's food supply, as the two countries previously accounted for 30 percent of all exports of wheat and other staples.

The Food Outlook report said that developing countries will foot the bulk of the global food import bill. However, poorer countries will still be hit hard as their import volumes are expected to fall by 10 percent on the same bill due to inflationary pressures and access issues.

The report added that "poor economies will be forced to shift their imports towards staple foods in comparison to rich economies that will continue to benefit from the full range of food products".

The International Monetary Fund has intervened to curb rising prices, where it approved a new shock window to compensate low-income countries for rising prices.

The Food and Agriculture Organization of the United Nations said in a statement that it "supported the decision as necessary to reduce the burden of import costs on poor economies".

"These are worrying signs from a food security perspective, indicating that importers are finding it difficult to finance rising international costs that are likely to affect international prices," the statement added. announcing the end of their flexibility'.