AMMAN ––
Jordan's food supplies are at safe levels in case conflict erupts between Russia and the
Ukraine, but the country will definitely be commercially affected by a conflict,
stakeholders agreed Sunday.
اضافة اعلان
The government has assured
the public that wheat and barley reserves are enough to meet local demand for
15 months, noting that Russia and Ukraine are not among the major suppliers of
these essential commodities.
President of Amman Chamber
of Commerce
Khalil Al-Haj Tawfiq confirmed that Jordan's food basket is safe in
case of war abroad, or any other emergency situation, noting that Jordan
imports from Russia and Ukraine only sunflower cooking oil. He added that
Jordan imports wheat from Romania and poultry from US and
Brazil, and it is not
likely that maritime shipping from these countries of origin will stop.
However, Haj Tawfiq agreed
that the expected hikes in the prices of oil and gas will affect the local
market.
Hussam Ayesh told
Jordan
News that the rising political tensions between Russia and Ukraine have already
pushed oil prices up to a seven-year high.
By Saturday, oil prices
peaked following a five-week uptrend to see the price per barrel stand at $94, and
that will reflect on Jordan's energy bill, which amounted to JD1.6 billion by
the end of November 2021.
Ayesh also underlined the
fact that Russia and the
Ukraine are the suppliers of 30 percent of the world's
cereal production, and that is also bad news for Jordan and the rest of consuming
countries.
The subsequent rising
inflation rate, he said, would prompt central banks to raise the interest rates
on loans.
Another risk associated
with the crisis are rumors, according to former minister of state for economic
affairs Yusuf Mansur, who warned against making exaggerated statements about the
repercussions of the conflict on Jordan's economy.
Mansur said circulating negative
predictions would encourage monopoly and bad market practices, which requires
interventions by the Ministry of Industry, Trade, and Supply.
The Kingdom’s oil bill went
up by 22.9 percent during the January-October period 2021, according to the
Department of Statistics, while the annual food bill accounts for JD2 billion.
Last year Jordan launched the strategic grain reserves at the Ghabawi
horizontal bunker silos. According to the Industry Ministry, storage capacities
around the Kingdom total around 1.1 million tonnes, and were expected to reach
1.45 million tonnes by the end of 2021.
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