Ukraine crisis to affect agri sector, inflation: Oman

Ukraine crisis to affect agri sector, inflation: Oman

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Muscat – The Russian invasion of Ukraine and the resultant high oil prices will see inflation grow as well as affect the agriculture sector in Oman, according to experts.

The situation is expected to lead to a spike in prices of products and food commodities – especially wheat – some minerals and agricultural raw materials in coming months.

International wheat prices have already soared to record highs, overtaking levels seen during the food crisis of 2007-08. Almost a third of the world’s wheat exports are from Russia and Ukraine. Since Russia’s invasion of its neighbour, ports in the Black Sea have come to a standstill.

Speaking to Muscat Daily, Saed Abdullah Rashid al Kharusi, chairman of Omani Agriculture Association, said, “The prices of food products had begun to rise with the rise in oil prices before the political crisis between Ukraine and Russia. The countries that produce crops are importers of oil, and with the increase in oil prices, they have converted part of their strategic crops such as wheat, corn, soy and barley into bio fuel to operate industrial machines, and consequently, the supply of these crops decreased, which led to an increase in prices, in general.”

He added that “there is no