Cereals: Prices

(asked on 19th April 2022) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment his Department has made of the impact of market speculation on grain prices.


Answered by
Victoria Prentis Portrait
Victoria Prentis
Attorney General
This question was answered on 28th April 2022

Increases in international food commodity prices have been driven by a range of factors, including rising energy prices, increased demand, and trade disruption. Russia's invasion of Ukraine has impacted the ability of Ukraine to produce and export key agricultural commodities. This suggests that the main driver of the observed price changes is due to Ukraine’s inability to export. Previous assessments by Government economists have suggested there are good reasons to be sceptical that speculation in futures markets has been a significant cause of food price spikes. The department continues to monitor market developments closely alongside international partners like the Agricultural Market Information System.

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