Economists have expressed fear that the supply of agricultural products may be at risk in the new year. Because there are still supply shortages and food inflation around the world. Reuters reported this information in a report.
Food prices have increased globally this year. As a result, farmers have become more interested in the cultivation of grain crops and oilseeds. Still, economists and market analysts believe that the global supply of goods will face a crisis in 2024. They blame the impact of El Nino, export restrictions and high demand for biodiesel in the top producing countries.
Ole Howe, director of advisory services at agricultural brokerage Aichon Commodities in Sydney, said, ‘There have been good yields in the top producing areas this year. Although the situation has improved somewhat, we are still under the threat of supply shortage.’
Ole Hau also said that environmental experts believe that El Nino will remain effective at least until April-May. As a result, the supply of rice, wheat, palm oil and other agricultural products in the top agricultural exporting and importing countries may be at risk.
Apart from this, the yield of rice in the new year in the Asian region may also be low. Because the water bodies in this region are drying up due to dry weather.
Rice production will decrease due to El Nino this year. And due to the decrease in rice production, the supply of rice has naturally been disrupted. Meanwhile, India, the world’s top rice supplier, has banned Admani. Overall, the supply shortage is not receding.
Apart from rice, the production of other agricultural products in India is also under threat. Market analysts say wheat production may also decrease in the coming year due to dry weather. With wheat stocks in India already at a seven-year low, if production declines further, India will inevitably have to go on a wheat import path in 2024.
Experts say the dry weather will affect Australia as well. Dry weather in the world’s second-largest wheat exporter could cause a sharp drop in wheat production. Due to these reasons, analysts fear that the supply of agricultural products in the world market may be at risk in the new year.