S Jaishankar Warns of Global Food and Energy Pressures Due to Ongoing Conflicts

External Affairs Minister S Jaishankar warns that a major food crisis is coming in the next few months because of ongoing conflicts in Ukraine and the Iran-Gulf region. Speaking at an event hosted by the Asia Society in New York, he stated that these wars are causing serious disruptions to grain shipments and leading to widespread fertiliser shortages. He noted that the combined pressure of higher costs for energy, food, fertiliser, and finance is proving very stressful for developing economies.

Energy Pressures

Jaishankar pointed out that the global energy market is very tight and warned that political decisions regarding oil supplies could make the situation worse by driving up prices. He explained that concerns involve both the physical security of oil supplies and the politics surrounding them, which together create an aggravated double crisis.

Grain and Fertilisers

Addressing agricultural concerns, Jaishankar stated that major grain exporters will struggle to send out shipments, particularly through the Black Sea route. He added that the world faces severe fertiliser shortages because production has been hit in key producing areas located in West Asia and Russia. Meanwhile, independent data shows that global food security depends heavily on prices, incomes, and a country's ability to pay for essential imports.

Context

Global supply chains for food and energy are deeply interconnected, meaning regional conflicts can quickly create shortages far away from the fighting zones. Developing nations often face higher risks during such global shocks due to limited financial reserves and heavy reliance on imported goods.