Romania became the first country to cut off grain exports during the coronavirus pandemic, a dramatic move that could fan worries about the global food supply. The government passed a decree banning the sale of grain to countries outside the European Union during a state of emergency, which is expected to last until at least mid-May. “We can’t afford to be left without wheat because of the greed of some grain owners,” Prime Minister Ludovic Orban said in a televised address on Thursday. “If necessary, I’m determined to ban these exports and even seize them.”
A wheat cargo sold to Egypt’s state-run buyer has already been held up by the new restrictions. “This is a manifestation of the new trend: food protectionism,” said Sergey Feofilov, director general at agriculture consultancy UkrAgroConsult in Kyiv. “This confirms that concerns exist about supply.” Romania’s decision could also support higher wheat prices. Futures traded in Chicago, the global benchmark, are up 12% from a low in mid-March.
The United Nations has warned that countries should avoid “beggar-thy-neighbor policies.” A recent report estimated the number of people suffering from hunger could double in a few months because of job losses and labor disruptions related to the pandemic.