The Food and Agriculture Organisation of the United Nations ( FAO ) is calling for a global Food Import Financing Facility ( FIFF ) to help poorer countries deal with surging prices as a result of the war in Ukraine . Director-General QU Dongyu addressed finance ministers and central bank governors in Washington . The FIFF , which is also aimed at increasing global agricultural production and productivity in a sustainable way , is one of six policy proposals put together by FAO in response to the crisis .
Russia and Ukraine are important players in the global food market , with almost 50 countries dependant on them for at least 30 percent of their wheat import needs . Russia is also a key exporter of fertilisers . In 2020 , it ranked as the top exporter of nitrogen fertilisers , the second leading supplier of potassium , and the third largest exporter of phosphorous fertiliser . Energy prices have also been rising , mostly due to market conditions .
With the COVID-19 pandemic already squeezing budgets , the conflict in eastern Europe has pushed FAO ' s Food Price Index
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to an all-time high , hitting the vulnerable the most . Higher fertiliser prices , meanwhile , are putting future harvests at risk globally .
According to FAO simulations , the conflict could result in as many as 13.1 million more people going hungry between 2022 and 2026 , compared to the baseline .
" The war can have multiple implications for global markets and food security ," FAO Director-General QU Dongyu said today in a video message to a Group of 20 meeting of Finance Ministers and Central Bank Governors in Washington .
The FIFF , which would complement existing mechanisms within the UN system , would be strictly based on urgent needs and limited to low and lower middle-income net food-importing countries , Qu said .
In addition , it is designed to increase future resilience by asking eligible countries to commit to invest more in sustainable agrifood systems . Qu said the FIFF has been stress-tested by FAO for its impact on the global markets and would be convenient to administrate and scale up .
" The lesson learned is that we need to increase agricultural production and
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productivity in the world while being sustainable ," Qu told the meeting . " It is high time to work together for ending hunger and malnutrition in the world ."
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Qu was invited to illustrate the economic consequences of the war in Ukraine , especially on the food security , by Indonesia , the current holder of the G20 presidency . CLA |