Concerns have risen in Lebanon regarding potential shortages of wheat and vegetable oils and price increases following Russia’s announcement of suspending its participation in the agreement for exporting Ukrainian grains via the Black Sea.
Read more
Consequently, global wheat prices began to rise shortly after the announcement due to anticipated future market shortages, as Ukraine is a major exporter of wheat and vegetable oils.
Caretaker Minister of Economy Amin Salam informed local media “Annahar” that the repercussions of suspending the grain agreement were not yet clear.
Salam stated, “Global wheat prices will rise, affecting Lebanon in this context. However, we do not expect a shortage in the market because we have been diversifying wheat import sources recently.”
He explained that Lebanon has started importing from alternative sources, especially since the World Bank no longer deals with Russia. However, the delivery time from these sources might take longer than those from Ukraine.
Regarding the existing inventory in Lebanon and whether it would be sufficient to avoid market shortages if the crisis were to persist and global wheat supplies were scarce, Salam pointed out that “Lebanon lacks strategic reserves and relies on private sector capabilities. The available quantities would last for about two to three months at most.”
In this context, the Head of the Syndicate of Food Importers in Lebanon, Hani Bohsali, stated that “Lebanon’s wheat importation from Ukraine via the Black Sea is modest and not significant, given the diversification of sources. Thus, there is currently no impact on the crisis.”
Bohsali told local media that prices in Lebanon would not immediately skyrocket. However, he emphasized the need for relevant authorities to address the situation before the actual impact takes hold.
He added that “the cessation of the grain agreement would create a global crisis, and Lebanon, like other countries, would naturally be affected by future price hikes if solutions were not found in time.”
