External Affairs Minister S. Jaishankar on Thursday shed light on the commodities shock that the Ukraine crisis has unleashed and argued in favour of the interest of the developing world. Addressing the BRICS foreign ministers-level meeting, Mr. Jaishankar sought "credible commitment of resources" by the developed economies in mitigating the threat of climate crisis.
"Knock-on effects of the Ukraine conflict have led to sharp increases in the costs of energy, food and commodities. This must be mitigated for the sake of the developing world," said Mr. Jaishankar in his speech. The senior Minister's comment highlighted the disruption that the commodities market is dealing with since the beginning of the war in Ukraine on February 24. The BRICS event was attended by the foreign ministers of China, South Africa, Brazil and Russia which is at the centre of global events because of its invasion of Ukraine.
India has been faced with a steep increase in the prices of wheat, cotton, cooking gas, metals and other items. The increase in the commodities prices has been compared to the commodities shock that was witnessed last time in the 1970s. Arguing in favour of the rights of the developing economies in a turbulent world, Mr. Jaishankar said, "The COVID pandemic followed by the Ukraine conflict is causing enormous socio-economic hardships in the developing world. We need resilient and reliable supply chains, economic decentralisation".
Mr. Jaishankar's comments echoed India's current policy shifts as displayed by Delhi in dealing with the economic fallout of the war. India on May 13 prohibited export of wheat, citing requirements of "vulnerable countries". The decision drew criticism from the G-7 member states which said such restrictions would worsen the global crisis. Defending India's protectionist policy on commodities, the Official Spokesperson of the Ministry of External Affairs Arindam Bagchi referred to vaccine inequity that was on display during the height of the pandemic.
The Ukraine crisis has also created trouble for the metal market, which in turn is expected to hit the sustainable energy ambition of the world. The war's impact on aluminium, nickel and zinc prices is casting a shadow on the renewable technologies that use these metals. Mr. Jaishankar hinted at the requirement of greater western responsibility in the domain of renewables and asked BRICS countries to strive in that direction. "Together, we should press for credible commitment of resources by developed nations for climate action and climate justice."
