The war in Ukraine has already sent grain prices soaring with a 35% increase recorded by Thursday – a week only after the outbreak, Philenews reports.
Cereal supplies from Russia and Ukraine to the rest of the world which jointly account for 30% of wheat and barley and 20% of corn have been minimized and pushed traders towards new markets.
Specifically, the price of corn this week jumped from €280 per ton to €375 per ton.
Therefore, Cypriot traders who saw prices getting inflated proceeded with orders in much smaller quantities than usual.
Due to the uncertainty that prevails with the war continuing, prices soaring and liquidity lacking grain traders are no longer able to maintain stocks. That’s why they have already asked the state to do all it can to meet demand.
Therefore, the government will have to procure cereals to ensure adequacy for the months in which a problem is most likely to arise. Traders believe the state will have to supply grain for one or two months, that is, about 25,00- to 50,000 thousand tons.