Video
As energy prices surge due to the war in Iran, driving up agricultural production costs, concerns are rising that the super El Niño phenomenon could lead to a significant increase in global food prices.
El Niño is a phenomenon where sea surface temperatures near the equator rise above average, causing major shifts in weather patterns and being identified as a cause for heatwaves and floods in various parts of the world.
The Guardian reported that economists have warned that this year's super El Niño could deal a severe blow to global food prices, with the possibility that the phenomenon could persist until 2028.
In a report released last month, the U.S. National Oceanic and Atmospheric Administration (NOAA) stated that the El Niño phenomenon has already begun this year, and there is a 63% probability that it will develop into a so-called super El Niño, where tropical Pacific sea temperatures are more than 2°C (36°F) above average.
Goldman Sachs analysts projected that the super El Niño could cause global food commodity prices to jump by 15.8% this year, with such effects expected to continue until the second half of 2028.
Furthermore, they predicted that this price increase would push up consumer food inflation in the European region by 1.3% and have a ripple effect across the globe.
Goldman Sachs further analyzed that India, the world's largest rice producer, is already feeling the impact of El Niño.
Although the monsoon season has begun in India, some regions are recording only 25% of their average annual rainfall, and some parts of central India are seeing rainfall at only about 50% of typical levels.
Concerns are being raised that this phenomenon could affect the supply of rice, wheat, and sugarcane produced in India, with the potential for global repercussions.
Reported by Kim Taewon | Video by Jang Yu-jin | Graphics by Yang Hye-min | Produced by SBS Digital News