Jordan News

On Thursday, grain prices hit record levels in the European trading sessions, affected by the Russian attack on Ukraine, which began yesterday and continued for the second day in a row.

Yesterday, the price of wheat reached an absolutely unprecedented price, with 344 euros per ton, at the Euronext group, which manages a number of European stock exchanges, but it declined today, Friday, by (-14%) far from the peak recorded the day before.

For their part, citizens expressed their fear of the rise in local grain and food prices, especially wheat, and its reflection on the rise in bread prices, in light of the ongoing military crisis that threatens the emergence of a “global wheat crisis.”

This comes at a time when Ukraine and Russia contribute about 29% of global wheat exports, 19% of world corn supplies, and 80% of sunflower oil exports.

While Jordanian experts warn that prices and inflation levels will be affected locally by the Russian-Ukrainian war, others believe that the food basket of the Jordanian citizen is still “safe.”

Al-Saket: There will be a significant increase in wheat and barley prices in Jordan

The international investment advisor at the Arab International Institute in Geneva in Switzerland, Engineer Musa Al-Saket, warned of the repercussions of the Russian attack on Ukraine on the Jordanian level.

Al-Saket explained in a post on his page on the “Facebook” platform, yesterday, Thursday, that the impact of the attack locally is “more price hikes, especially after oil reached 103 dollars,” and “inflation will exceed the 3% barrier, knowing that the 2022 budget has been calculated inflation.” based on 2.4%.

He expected a “crisis in the supply chains that will result in delays in shipping, whether imported or exported,” in addition to “a significant increase in wheat and barley prices.”

Al-Saket pointed out that “industrial exports, especially chemical ones, will be the most affected, as the total exports of this sector amount to more than 2 million dinars, and the total exports are about 3 million.”

Kabariti: No effect on wheat until mid-2023

As for the head of the Jordan Chamber of Commerce, Nael Kabariti, he confirmed that wheat will not be affected by the current crisis between Ukraine and Russia at least until the middle of next 2023.

Al-Kabariti added, during his speech to the midday newscast on Al-Haqiqa Al-Dawla channel, yesterday, Thursday, that this is due to the presence of a stockpile of wheat sufficient to secure Jordan for approximately 15 months, and that Jordan’s current import of wheat comes from other countries and not from Ukraine or Russia, despite Any tension will automatically increase prices in the world and will scarce exports in some regions.

And he indicated that Jordan’s impact on imports will depend on the import of vegetable oils, which it imports from Ukraine, as it is the main source of oil for Jordan, but there are other sources that Jordan will resort to.

Kabariti continued: The impact due to the crisis will affect the whole world, and we are part of the world.

Hajj Tawfiq: There is no change in the prices of bread in Jordan

For his part, the head of the Food Traders Syndicate, Khalil Al-Haj Tawfiq, confirmed that the Ministry of Industry, Trade and Supply imported wheat from Romania in the last year, indicating that we have enough stocks for the Kingdom of wheat for a period of 15 months.

Haj Tawfiq stressed in a post on his account on the “Facebook” platform, yesterday evening, Thursday, that “there will be no change in the prices of bread in Jordan.”

He pointed out that he met the Minister of Industry, Trade and Supply Youssef Al-Shamali and the Secretary-General of the Ministry, to discuss the repercussions of the war on Ukraine on the prices of food commodities in the world and the local market, in addition to the rise in oil prices and its repercussions and preparations for the holy month of Ramadan.

Al-Hajj Tawfiq added that the meeting dealt with the necessity of announcing to citizens in full transparency about any changes or developments that may occur in the first place, indicating that the Jordanian consumer’s basket of food is safe and receives attention and follow-up from all parties.

The government reassures the Jordanians

Yesterday, Thursday, the Ministry of Industry, Trade and Supply reassured the citizens regarding the abundance of food stocks, price stability and the efficacy of government policies that ensure the preservation and enhancement of stocks and the continuous monitoring of markets.

The Minister of Industry, Trade and Supply, Youssef Al-Shamali, confirmed the adequacy of the strategic stock of locally produced and imported foodstuffs, as the ministry works in partnership with the industrial and commercial sectors to maintain the stock and make it always within safe limits.

During his meeting with the head of the Amman Chamber of Commerce/Captain of Foodstuff Merchants, Khalil Haj Tawfiq, and a number of food commodity traders, he also stressed the importance of continuing to work to enhance the supply stock and maintain price stability, especially before and during the holy month of Ramadan.

Haj Tawfiq and the merchants reviewed the reality of the stock and the ongoing contracts to secure the Kingdom’s needs and make them within the safe borders.

Al-Shamali added that, according to a study conducted by the Ministry of Industry; It became clear that the prices of 82% of food commodities were stable, with a 10% decrease and an increase of 8%, during the month of January (January) compared to the previous month.

And he indicated that the ministry monitors food exchanges and global markets, as it imposes continuous control over local markets to follow up on the stock situation and the merchants’ commitment to the provisions of the law.

Al-Shamali indicated that the ministry is working in coordination with the private sector to prepare a plan in preparation for the holy month of Ramadan to ensure the abundance of goods and the stability of their prices.

hedging policy

It is noteworthy that the Ministry of Industry, Trade and Supply has implemented a hedging policy since 2008, according to which a safe stock of wheat, barley and food commodities has been built, and the multiplicity of import sources and the flow of supply to the Kingdom.

In the same context, Al-Shamali said that the sufficient stock of wheat is sufficient for domestic consumption for about 15 months, and the barley stock is sufficient for 11 months.

He added that the import operations are carried out from different origins, especially from Romania, where the volume of wheat imports from it last year amounted to about 90% of the total contracted quantities, while imports from Russia did not take place last year and this year because of imposing export duties on wheat, barley and corn. Imports are made from Ukraine this year as well.

Al-Shamali stressed that the stock of other supply commodities is also comfortable, and there is continuous coordination with the commercial and industrial sectors to enhance the stock, noting that the government had previously taken many measures to speed up and facilitate the clearance of food commodities and reduce import costs.

On the other hand, the civilian and military consumer institutions contribute to enhancing food stocks and stabilizing prices.