- Hindi News
- Business
- US Iran War Impact: UN Warns Of Further Price Hikes As Supply Chains Disrupt
New Delhi14 minutes ago
- copy link
The impact of the ongoing war between America and Iran is beginning to be seen in kitchens around the world. According to the United Nations (UN) report, global food prices have reached their highest level in the last three years.
At the same time, according to the data released by the Food and Agriculture Organization (FAO) on Friday, the food commodity price index has increased by 1.6% in April. This is 2.5% more than last year.
The main reason for this surge is the disruptions in the supply chain of vegetable oil (edible oil), meat and grains.
Difficulties increased due to closure of Strait of Hormuz
The Iran war has now entered its 10th week. Hormuz route is closed. The movement of essential goods for farming like diesel and fertilizer through this route has stopped.
Due to cost of fertilizers and fuel, it is becoming difficult for farmers to do farming, which will have a direct impact on the prices of food items in the future.
Prices of vegetable oil and meat increased the most
According to the report, vegetable oils have been most affected. Rising crude oil prices have increased demand for bio-fuels, causing the Vegetable Oil Index to rise 5.9% compared to March. This is the highest level since July 2022.
At the same time, the meat index has increased by 1.2%, which is an all-time record so far. Grain prices have also seen an increase of 0.8%.
Now companies are selling stocks, inflation will increase further
Maximo Torero, Chief Economist of FAO, said in an interview that the agri-food industry is currently surviving because companies are selling old stock.
He said, “As soon as the increased cost of raw materials and energy reaches the accounts of the companies, we as consumers will face a huge blow of inflation.”
He warned that if this tension extends beyond 90 days, the possibility of a ‘global food crisis’ in late 2026 and 2027 will increase significantly.
Fear of reduced grain production
Bad weather and news of reduced wheat sowing in 2026 have also increased grain prices. Due to rising prices of fertilizers, farmers are now considering growing such crops in which the use of fertilizer is less.
Experts believe that the effect of this boom in the commodity market will take some time to reach the retail market, but the increase in food inflation is now certain.
Prices of 16 out of 20 essential items increased by 36%
According to the ‘Essential Commodity Index’ of Bank of Baroda, the inflation index in India increased by 1.1% annually and 0.3% on monthly basis in the month of April. This is the fastest monthly increase since August, 2025. Last month, prices of 16 out of 20 items of general need have increased.
The 36% increase in prices of edible oil, tomatoes and other essential commodities has taken retail inflation to 4% in April. There remains a risk of inflation rising further in the coming months as prices are rising in May as well.
————————–
Read this news also…
Everything from soap-biscuits to oil will be expensive: FMCG companies including Dabur, HUL will increase prices; Packaging and raw material costs increased
FMCG sector giant Dabur India has indicated to increase the prices of its products. The company says that input costs have increased due to rising prices of packaging material and increasing tension in the Middle East.
Apart from Dabur, companies like Hindustan Unilever (HUL) and Nestle are also facing inflation pressure. In such a situation, your household budget may deteriorate and everyday items like soap, oil, biscuits may become expensive. Read the full news…
Source link
[ad_3]
