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Romania became the first country to block grain exports during the coronavirus pandemic, a dramatic decision that could raise concerns about the global food supply, according to an Agerpres analysis cited by Bloomberg on Friday.
The Minister of the Interior, Marcel Vela, announced on Thursday night that during the state of emergency, exports will be suspended for various agri-food products such as wheat, barley, oats, corn, rice, wheat flour, soy, seed oil and sugar.
The state of emergency is expected to last at least until mid-May.
Present Thursday night on the national television station TVR 1, Prime Minister Ludovic Orban was asked if he was considering stopping the export of wheat and replied: “Yes, at least for wheat, because in March there were unexpected export figures Hundreds of thousands, almost 700,000 tons of wheat have been exported due to rising prices and high demand. We cannot afford to lack in Romania the quantities of wheat needed to guarantee daily consumption until harvest. “
The decision is symbolic because Romania has already sold much of the harvest.
However, the decision is largely symbolic, says Bloomberg. Romania, the second largest wheat exporter in the EU, has already harvested and sold much of the crop at this point in the agricultural season. Less than 1% of EU exports will be affected, according to estimates by UkrAgroConsult, which provides consulting services for the agricultural sector.
The decision is yet another sign that the world’s largest food producers are afraid of their own supply as buyers expand their supply and the virus has changed the usual trade routes.
“This is a manifestation of a new trend, food protectionism, and confirms that there are concerns about supply,” said Sergey Feofilov, general manager of UkrAgroConsult, Kiev.
Romania’s decision could also support higher cereal prices. On the Chicago Stock Exchange, the global benchmark, futures prices rose 12%, from a low level, in mid-March.
The United Nations warned that countries should avoid “beggar-to-neighbor policies.” A recent report estimates that the number of hungry people could double in a few months, due to the loss of jobs and the end of the pandemic.
Although Russia and Kazakhstan have already imposed limits, the regulations are relaxed enough to export large amounts of grain.
Egypt, the main importer of Romanian wheat
Romania will allow the sale of cereals within the EU, but a document that is not intended for export will be requested, the government reported. In the season that started in July 2019, Romania has already delivered more than 90% of the wheat that is expected to be exported outside the EU, according to data from UkrAgroConsult.
Romania is an important part of the Black Sea bread basket, where the land is perfect for growing wheat. Cereal shipments are regularly sold to countries in North Africa and the Middle East.
In addition, Romania is one of Egypt’s largest sellers, the world’s largest buyer of wheat, and supplies wheat to Jordan, South Korea, and Sudan. Furthermore, it is the largest corn exporter in the EU and a major supplier of barley.
The cost of bread often led to political unrest and instability. During food price increases from 2008 to 2011, there were food-related disorders in more than 30 countries in Africa, Asia and the Middle East.
