Warning about serious food crisis
New Delhi. Union Finance Minister Nirmala Sitharaman has warned in the Munich Security Conference about the serious food crisis looming over the world. During the conference, he clarified the situation on many important global issues ranging from blockages in major sea routes to India-US trade agreement.
Barriers to sea routes threaten global food security
The Finance Minister (FM Nirmala Sitharaman warning) clarified that the blockages in the world's major sea routes are having a direct impact on the global food supply:
- Hormuz and Bab el-Mandeb crisis: Current disruptions in key sea routes such as the Strait of Hormuz and Bab el-Mandeb pose a major threat to global food security.
- Looking at the Straits of Malacca: He warned that at present the situation in the Strait of Malacca is normal, but if any kind of obstruction occurs there, the global situation will worsen.
India's big steps to deal with the crisis
India has stepped up its preparations to deal with this disruption in the global supply chain and rising cost of imports:
- Shipping Emergency Fund: The Government of India has set up a 'Shipping Emergency Fund' to provide relief to shipping companies carrying fertilizers from rising insurance premiums and payments.
- Emphasis on domestic production: Skyrocketing prices, limited shipping availability and hefty insurance premiums have hindered fertilizer imports. In view of this, India is now rapidly increasing the production of urea and phosphate domestically.
Talks on India-US trade agreement stagnate
At the Munich Leaders meeting, the Finance Minister (FM Nirmala Sitharaman warning) also gave an update on the ongoing trade talks between India and America:
- pause in conversation: India and the US have reached a standstill in their trade deal talks. At this stage it has become difficult for either party to make or take any further relaxations in the terms.
- Trade Imbalance: The US is trying to reduce its trade imbalance with India through other measures beyond the scope of current negotiations.