Lebanon fears price hikes after Russian grain deal collapse

Lebanon fears price hikes after Russian grain deal collapse

Russia pulled out of a deal brokered by the U.N. and Turkey to allow Ukraine's grain to flow during a global food crisis. It helped stabilize food prices that soared last year after Russia invaded Ukraine — two countries that are major suppliers of wheat, barley, sunflower oil and other food to developing nations.

Lebanon, Egypt -- the world's largest wheat importer, and other lower-income Middle Eastern countries like Pakistan worry about what comes next.

Struggling with economic woes that have driven more people into poverty, they fear rising food prices could create even more pain for households, businesses and government bottom lines.

Many have diversified their sources of wheat, the main ingredient for flatbread that is a staple of diets in many Mideast countries, and don't expect shortages.

It "is an unnecessary shock for the 345 million acutely food insecure people around the world," said Abeer Etefa, a spokeswoman for the U.N.'s World Food Program.

Russia also has launched attacks on Ukrainian ports and agricultural infrastructure following the collapse of the accord, leading global wheat prices to zigzag.

Despite the volatility, the costs are below what they were before Russia invaded Ukraine, and there is enough production to meet worldwide demand, said Joseph Glauber, senior