Restrictions in the Strait of Hormuz could increase grain prices by up to 80%
Continued disruptions to shipping through the Strait of Hormuz could lead to grain prices rising by up to 80% in some parts of the world.
Continued disruptions to shipping through the Strait of Hormuz could lead to grain prices rising by up to 80% in some parts of the world.
John Denton, Secretary General of the International Chamber of Commerce (ICC), told The Wall Street Journal that the risk is related to disruptions in the supply chain of mineral fertilizers.
According to him, the situation in the Strait of Hormuz is affecting around 40% of global fertilizer trade. Difficulties in rerouting logistics could result in a shortage of approximately 2.7 million tons of fertilizer on the market.
Denton noted that countries such as the Philippines, which import up to 90% of the fertilizers they need, face greater risks under the current circumstances.
According to the expert's assessment, prolonged disruptions in fertilizer supplies could increase agricultural costs and, consequently, food prices.