World heading towards worst food crisis

There are more warnings about the worsening global food crisis. Here is a snapshot of the latest key food stories from around the world. The countries having ample stockpiles have to stop smuggling to neighboring countries, and those with little supplies have to purchase as much as they can affords, that too in a speedy manner.

Pricey Nutrients

Expensive fertilizers are just one of many factors that have driven food prices to a record level. In response, rice farmers across Asia are scaling back usage of the nutrients, threatening harvests of a staple that feeds half the world.

The repercussions could be huge, predicts International Rice Research Institute. Yields could drop 10% in the next season, causing a loss of 36 million tons of rice, or the equivalent of feeding 500 million people. That could exacerbate food inflation that’s contributing to turmoil gripping developing nations such as Egypt, Tunisia and Sri Lanka.

Costly Shipping

Food prices are also being buoyed by high shipping costs, which is bad news for grain-importing countries, particularly in Africa and Asia.

The International Chamber of Shipping said about 80 to 100 ships have been unable to leave Ukrainian waters for almost two months due to underwater mines and military blockades.

Bulk freight rates are rising as owners and charterers expect ships will be tied up for longer periods. And that’s at a time when many importers are struggling to afford to buy enough grain. 

Food for Thought

The quality of Indian wheat — which has put off some buyers in the past — will be crucial as the country’s grain becomes competitive for the first time in years as the Ukraine war upends global trade flows. 

In Canada, where drought pummeled harvests last year, snow now threatens to delay crop plantings. The wintry weather there should mean more maple syrup because farmers can tap trees for longer.

And prices of fish crackers, a popular side dish in Indonesia, are set to surge as it becomes more expensive to make them.

Michael Ratney likely new US ambassador to Saudi Arabia

President Joe Biden is anticipated to nominate Michael Ratney, a career member of the foreign service, to serve as ambassador to Saudi Arabia, the White House announced Friday.

Ratney most recently served as the Chargé d’Affaires at the US Embassy in Jerusalem while Biden’s choice for ambassador to Israel, Thomas Nides, awaited confirmation. He has served in various State Department roles focused on Israel and the Middle East.

If confirmed, Ratney would serve as Biden’s envoy to the Kingdom at a precarious time for US-Saudi relations. The Biden administration has looked to Saudi Arabia and others to step up oil supply amid rising gas prices after the US and some other nations banned Russian oil imports over Moscow’s invasion of Ukraine.

Relations with Saudi Arabia have also been complicated given the kingdom’s human rights abuses, particularly the 2018 murder of journalist Jamal Khashoggi.

Biden vowed last year to hold Saudi Arabia accountable for Khashoggi’s murder after US officials determined Saudi Crown Prince Mohammed bin Salman ordered the killing.

The Wall Street Journal reported last month that Crown Prince Mohammed refused to speak with Biden about the US banning Russian oil imports. The White House called the report inaccurate.

Michael Alan Ratney born in 1961 is at present the Chargé d'Affaires of the United States Embassy in Israel. He was most recently the Dean of the School of Language Studies at the Department of State's Foreign Service Institute. Prior to that, Ratney served as the State Department's Deputy Assistant Secretary for the Levant and Israel-Palestinian Affairs and, from 2015 to 2017, as the US Special Envoy for Syria. From 2012 to 2015, Ratney was the US Consul General in Jerusalem. Until 2012, Ratney was Deputy Assistant Secretary for International Media and, before that, Spokesman for the State Department's Bureau of Near Eastern Affairs. He is the current nominee to be the next United States Ambassador to Saudi Arabia.

Since joining the Foreign Service in 1990, Ratney served as Deputy Chief of Mission at the US Embassy in Doha, Qatar, as well as tours in Mexico City, Baghdad, Beirut, Casablanca, Bridgetown, and Washington, DC. Ratney is from Massachusetts. He earned a BS from Boston University, and an MA from the George Washington University.

 

Iran notifies Tel Aviv aiming its missiles at strategic Israeli sites

An unnamed Iranian source revealed to Al Jazeera that Tehran has informed Tel Aviv that they know the locations of all of their nuclear, biological, and chemical weapons sites, and has warned them that, in the event of any aggression, Iran will strike the sensitive targets.

The cable was sent through European intermediaries and included a map showcasing where all these targets are located, according to The Cradle.co.

An informed IR Iranian source told Al-Jazeera that Tehran red flagged all chemical, biological and nuclear weapons storages and facilities of IL Israel and that they will be the first targets, in case Israel decides to start a war with Iran. 

The information was initially reported, without explanation as to the source of such revelations, by independent conflict analysis and news aggregate channel IntelSky on April 18, 2022.

“Iran has sent to Israel, through European intermediaries, pictures/locations of all its biological, chemical and nuclear weapons storages that will be struck at the first military clash,” IntelSky said on Twitter.

These news comes after Iranian President Sayed Ebrahim Raisi made a general warning on April, 18, 2022 saying that any Israeli aggression against the Islamic Republic will result in Iran striking into the heart of Israeli occupied lands and military bases.

“Just know that if the slightest move on your part occurs against our nation, our armed forces will target the center of the Zionist regime, and the power of our armed forces will not leave you at rest,” Raisi said as Iran marked Army Day.

During his speech, Raisi also said Iran’s military capabilities are internationally recognized.

“Today, our military industry is in the best condition,” he said.

After Raisi’s speech, a series of missiles, launch systems, and more than a dozen types of unmanned aerial vehicles (UAVs) were displayed.

Asian Shipowners’ Associations oppose hike in toll changes by Panama and Suez Canals

According to Seatrade Maritime News, Asian Shipowners’ Associations (ASA) are critical of recent proposed toll changes at both Panama Canal and Suez Canal Authorities. At a recent meeting, ASA delegates expressed concern and disappointment over the proposed hike in canal toll changes.

They reiterated the significance of Suez and Panama canals as critical global infrastructure and called for the canal authorities to avoid sudden and significant changes in tolls and charges.

“Delegates expressed their confusion against new surcharges introduced on March 01, 2022 with only 48 hours prior notice, then to be revised on May 01, 2022 by Suez Canal Authority (SCA), which resulted in roughly a 7 to 20 percent increase in toll for different types of vessels, in addition to a 6 percent tariff hike for most types of vessels, implemented on February 01, 2022,” said ASA.

Uncertainty around how surcharges operate could undermine the stability of the Canal, said the committee, calling for the industry to express its concerns to SCA.

ASA delegates appreciated some positives in the Panama Canal’s new toll system proposed earlier in April 2022 by the Panama Canal Authority (ACP). Delegates said the ACP had given sufficient notice and a formal consultation period, but were concerned that significant toll hikes could affect the long-term viability of the canal, “as the mark-up for some types of vessels may exceed 100% in 2025, as compared to the current toll.”

The ASA meeting also discussed the review of anti-trust exemptions for carriers on the US, a policy delegates said was “indispensable for the healthy development of the liner shipping industry and the maintenance of a reliable service to the entire trading community.” ASA will continue its efforts to maintain anti-trust exemptions for liner shipping agreements.

 

United States pouring more and more arms into Ukraine

With the each passing day my conviction is being cemented that United States has instigated Russia-Ukraine conflict to keep its military complexes busy in developing newer and more lethal arms. It is supplying arms from ‘stockpile’ to get rid of older stuff. 

The sale of these arms is fully funded, because the US has ample funds at its disposal after the withdrawal of troops from Afghanistan. 

Reportedly, Joe Biden, President of United States on Thursday announced to send another US$800 million in military aid to Ukraine to assist its ability to fight invading Russian forces.

The package has come a week after the administration sent a US$800 million weapons package to Ukraine, and as Ukraine will need to fend off Russian forces fighting to control the Donbas region.

With Thursday’s announcement, the United States has committed US$4 billion in security assistance since the start of the Biden administration, including US$3.4 billion since Russia’s invasion of Ukraine began on February 24, 2022.  

Thursday’s package will include 72 155mm howitzers, 144,000 artillery rounds and 72 tactical vehicles to tow the howitzers, according to a statement from the Pentagon.

Ukraine will also be receiving 121 Phoenix Ghost Tactical Unmanned Aerial Systems developed by the Air Force for specifically Ukraine.  

Pentagon press secretary John Kirby told reporters that these systems, made by AEVEX Aerospace, have similar capabilities to the Switchblade—a rapidly-deployable system that can be used against personnel and light vehicles. 

To rush weapons to Ukraine, Biden has relied on presidential drawdown authority to direct the Pentagon to send weapons from its own stockpiles.

Biden acknowledged on Tuesday that he was nearing the limits of the drawdown authority provided to him under the US$1.5 trillion omnibus bill he signed last month, which included US$13.6 billion in supplemental aid to help Ukraine.

Therefore, he will ask Congress next week to approve supplemental funding to keep weapons and ammunition flowing without interruption.

When asked how much supplemental funding he would request, Biden said that's being decided now, adding, “I'm asking the Defense Department to put together what they think we need.”

The US officials have in recent weeks warned Russia may be refocusing its efforts in Ukraine on hitting the Donbas region in a bid to overwhelm Ukrainian forces there after initial assaults on Kyiv and other major cities stalled.

Officials have warned the next phase of the fight could drag on for months or longer.

In addition to the military aid, the Biden administration will ask for US$500 million to help Ukraine keep government services. The president also announced a ban on Russian-affiliate ships docking in US ports.

Further, Biden also announced that the US will pledge to take in 100,000 Ukrainians displaced by the crisis.

As part of this, the Uniting for Ukraine program will allow Ukrainians to apply to stay in the US for up to two years through a process known as humanitarian parole, which allows government officials to temporarily waive immigration requirements. 

 

Miftah Ismail sounds too amateur

Finance Minister Miftah Ismail said on Thursday that he was leaving for Washington to meet International Monetary Fund (IMF) officials for the revival of a loan facility. In the same breath he added to travel to London on the way, where he would meet PML-N supremo Nawaz Sharif.

He disclosed his intension to meet the IMF Managing Director, Chief Executive Officer of the World Bank, Ministers of Turkey, Saudi Arabia and China. If he has planned so many meeting, was any agenda prepared or it will be just saying hello to each other?

On Wednesday, he had told media persons that his priority was to secure one tranche of US$1 billion from the IMF and prepare for the coming budget and not to club two quarterly reviews.

He didn’t bother to thank overseas Pakistanis who have sent more than US$23 billion in nine months of the current financial year. One may recall, his government has decided not to give voting rights to overseas Pakistanis, despite their longstanding demand.

He was a bit ruthless in saying that the IMF program was stalled following the premature end of the Imran Khan government. He was not cognizant of the fact that the no-trust motion, which brought Imran Khan Term to an abrupt end, was initiated by his party in collaboration with political parties?

Ismail revealed that the IMF wanted Pakistan to do away with subsidies extended by the previous government, including those on fuel prices and power tariffs — two relief measures that former Prime Minister Imran Khan had announced right before the filing of a no-trust motion against him. The move had invited criticism with many describing it as going against Pakistan's commitments to the IMF for the US$6 billion Extended Fund Facility.

He failed to recall that soon after coming into power Shehbaz Sharif, refused to approve a summary of hike petroleum prices prepared by Oil& Gas Regulatory Authority (OGRA).

It may be worth reminding that the single-point maiden meeting of the Economic Coordination Committee (ECC) of the newly formed federal cabinet on Tuesday approved Rs69 billion for immediate reimbursement of price differential claims (PDCs) to the oil industry on account of cheaper sales of petroleum products than the cost of purchase. Wasn’t this a violation of commitment with the IMF?

In an attempt to contain budget deficit he expressed intention to save by cutting the development budget to Rs600 billion, instead of Rs900 billion, which might not be spent in any case by the ministries.

He was delighted to inform, “We will not cut a penny out of Benazir Income Support Program”. He went to the extent of saying to compensate; wheat flour price has been reduced by Rs150 per 10kg, while sugar would be sold at Rs70 per kg through utility stores. Edible oil price has also been reduced. Has he any realization that selling at reduced price, means providing subsidy?

 

Russia faces imminent default

According to a Bloomberg report, Russia faces imminent default. The Credit Derivatives Determinations Committee—which includes Goldman Sachs, Barclays and JPMorgan—said Wednesday that a “potential failure-to-pay” event occurred for credit-default swaps when Russia paid rubles after foreign banks declined to process US currency transfers. 

If Russia doesn’t pay up in US currency by the time its grace period expires on May 04, 2022, it would be the country’s first default on external debt in more than a century. Holders of the swaps could then start the process of getting paid on contracts covering about US$40 billion of debt.

Bloomberg says, this potential financial calamity for Russia is of course tied to Vladimir Putin’s bloody war on Ukraine and the subsequent storm of sanctions that’s rained down upon him. Some eight weeks after he sent troops across his southern border, Putin has failed to take Kyiv and reportedly lost thousands of soldiers and untold amounts of equipment. Now a small but growing number of senior Kremlin insiders are quietly questioning his decision to go to war. They believe the invasion was a catastrophic mistake that will set the country back for years, if not decades.

But most Russians (fear of voicing dissent  notwithstanding) tell pollsters they support Putin’s war, one in which thousands of civilians have likely been killed through seemingly indiscriminate bombing and alleged mass executions.

As Russian forces now move on the Donbas, Moscow is seeking to dissuade NATO from increasing its flow of weapons. On Tuesday, Putin Deputy Sergei Lavrov said Russia was against using nuclear weapons in Ukraine, but failed to give a direct answer about whether Putin might use them anyway.

And on Wednesday, Russia tested a new nuclear-capable intercontinental ballistic missile, an event Putin used to issue yet another thinly veiled threat against NATO.

In its new assault in Ukraine’s east, Russia has yet to gain significant ground, Ukraine officials contend, though surrounded defenders in the blasted port city of Mariupol have warned they are close to the end. But while Russia seeks to consolidate gains along the Sea of Azov, the potential expansion of NATO along its northern border is getting closer to reality.

Finland’s parliament began debate on policy changes that may pave the way for a bid to join the alliance. Putin still has friends in Beijing, at least. China said it will continue to strengthen its strategic ties with the Kremlin.