MICHEÁL MARTIN HAS said commodity prices are “going through the roof” as he warned people to expect an economic impact from Russia’s war in Ukraine.

The Taoiseach said the conflict will affect how much products cost and said a possible shortage of grain will have “very serious repercussions”.

Ireland is heavily reliant on imported grain, with around 60% of the 5.5 million tonnes used in the country every year sourced from overseas.

It is used both in products for human consumption and for animal feed.

Ukraine and Russia are both key international exporters of grain.

Russia also supplies more than 20% of fertiliser used in Ireland.

Martin, who was speaking to reporters during a visit to London, said the precise impact of the war is yet to be determined.

Asked how concerned he is about the shortage of certain products, he said: “I think Europe is capable of feeding itself.

“I think there will be a very significant issue around grain, and it looks very likely Ukraine will not be planting this season.

“That has very serious repercussions across the continent, which will impact on Ireland, and that’s why there’s been discussions with Irish farming organisations.

“We have to be honest with people too, the war will have an impact.

“The precise nature of that impact is yet to be determined, but commodity prices are going through the roof basically.”

Martin said this will feed into the economy, with the three main areas being fuel prices, food and general commodities.

The Taoiseach said there will be an impact on food but said he was not clear yet about any specific issues around shortages.

Pressed on potential shortages of particular products and lack of choice, Mr Martin said: “I don’t want to scaremonger at this stage.

“I’m just not in a position to predict this. But I want to say to people though, the war will impact on us, particularly in terms of prices of many products, and that’s probably the earliest manifestation of the war through food and everything else,” he said.

Asked if the country is in a “war economy”, he replied: “Not quite yet but we’re heading into that direction.”

Diesel prices

Meanwhile, the French government has announced a package worth €2 billion to help consumers struggling with soaring fuel prices.

French Prime Minister Jean Castex announced yesterday evening that petrol and diesel prices would be reduced by 15c per litre.

The bill will be slashed by this amount when vehicle owners pay, with the state then reimbursing gas station owners for the difference.

“That means every time you fill up for €60, you save around €9,” Castex said.

With petrol prices now topping  €2 per litre at the pump in some areas, the government has come under pressure to reduce the impact on households.

It has also been under pressure to cut fuel taxes ahead of presidential elections next month, with more than half of prices at the pump made up of taxation.

Underlying petrol and diesel costs are linked to global oil markets which have risen by around 30% since the start of the year due to strong global demand and Russia’s invasion of Ukraine.

Last October, the government of President Emmanuel Macron announced a cap on gas and electricity prices until the end of 2022 and handed out cheques to poor households to help them with their domestic energy bills.

— Additional reporting by – © AFP 2022