Global market prices of agricultural products rise due to adverse weather and natural disasters

01-Oct-2024 02:52 PM

New Delhi. Agricultural crops are suffering heavy damage due to incidents like storms, heavy rains and floods and drought and arson in various parts of Asia, North America and South America continent,

due to which there is an environment of boom and strength in the prices of wheat, sugar and coffee and other products in the global market.

Bloomberg, Agriculture Spot Index registered an increase of more than 7 percent on a monthly basis. This index includes 9 major products. This is the highest monthly increase in the index since the beginning of the year 2022.

In fact, the weather conditions from Brazil to Vietnam and Australia remain unfavorable, due to which the production of food grains and upcoming crops as well as other agricultural commodities is likely to be affected.

According to trade analysts, in view of the uncertain situation of supply and availability, buyers from importing countries are not hesitant to buy wheat, sugar and coffee etc. even at high prices.

It is worth noting that in the initial months of the current year, the prices of these products were stable or soft to a great extent and there was no problem of its supply and availability.

But from the second half, the situation started changing and there was a possibility of increase in the prices of agricultural products.

In view of the possibility of a fall in production due to dry weather in Australia, the price of wheat increased in the Chicago Exchange in September. Similarly, due to the drought in the Black Sea region, the sowing of winter crops is likely to be affected.

Brazil is currently in the grip of severe drought while the sowing season of soybean and maize is going on there. The futures price of soybean in the Chicago Exchange has also jumped to a very high level.

There are indications that sugar production is being affected due to severe fire in the sugarcane producing area in Brazil.

In countries like China, Vietnam and Thailand, heavy rains occurred due to the Yagi storm and there was a severe outbreak of floods. On the other hand, sea cyclone has created havoc in America.

Similarly, many countries of Europe are grappling with the horror of heavy rains and floods. Due to this, the situation is getting worse.