- CNTV English - CCTV News

Fears rise due to grain export ban

08-07-2010 08:56 BJT Special Report:Forest Fires Ravage Russia |

Watch Video

Play Video

Russia has announced that it will ban grain exports for the rest of the year. This comes after a severe drought destroyed 20 percent of the nation's wheat crop.

The move is sparking fears of food shortages and price hikes on the world market.

Russia swelters in a heat wave, and the country's worst-recorded drought. Vast areas of crops have been destroyed.

Russia, the world's third-biggest wheat exporter, has announced a temporary ban on the export of grain -- pushing wheat prices to a two-year high.

The UN's food agency has warned world supplies of wheat may shrink next year.

Abdolreza Abbassian, UN Food & Agriculture Organization, said, "The psychological impact of the restrictions yesterday and the development with regard to weather is having some major implications."

Russia's temporary export ban is causing concern about whether loaves are set to become more expensive ... Or whether we could be heading for another food crisis -- like that seen in 2008.

Gail's is a London-based chain of artisan bakeries and cafes. They largely use wheat from the UK, France, and Canada for their hand-made bread.

Gail's co-founder Ran Avidan says an increase in the wheat price could still affect smaller businesses like his.

Ran Avidan, Gail's co-founder, said, "We try to think smarter about how to operate our business, how we can reduce our cost in order to accommodate a price increase in flour. It could be that we'll have to transfer some of it to our customers."

Gail's doesn't bake bread on the scale of industrial bakers -- who are expected to suffer more from the higher cost of flour.

Bread's a staple of most western diets -- and many of us would be affected by a price hike.

But it's not all bad news. Crops from outside of Russia should still be harvested as usual.

And at the moment, it's only the wheat price -- and not that of other commodities -- which is rocketing.

Given that food inflation and rioting in many countries accompanied the last food crisis two years ago, analysts and consumers will be monitoring food prices very closely.


Editor:Zhang Pengfei |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program