Rome, September 8 (Xinhua) – According to the United Nations Food and Agriculture Organization (FAO), the global food commodity prices benchmark index has decreased by 2.1 percent compared to July.
However, in August, the prices of rice reached a 15-year high, surging by 9.8 percent compared to the previous month. This increase was a result of India’s rice export ban since July and the seasonal drop in production between rice harvests in the Northern Hemisphere.
The largest component of the index, grain, and cereal prices, experienced a decline of 0.7 percent due to significant harvests from major producers. Corn prices have been continuously decreasing for seven months due to bumper crops in Brazil, while wheat prices have decreased by 3.8 percent because of strong harvests in the United States and Canada.
FAO reported that four out of the five broad sub-indexes observed decreases. Apart from the slight decline in grain and cereal prices, prices for vegetable oils, dairy products, and meat were also lower.
Meanwhile, sugar prices rose by 1.3 percent and were over 34 percent higher compared to the previous year. FAO explained that the increase in sugar prices was due to continuing concerns about the impacts of the El Niño weather phenomenon in the eastern Pacific Ocean. Additionally, sugar output in India was negatively affected by low rainfall and heavy rains made sugar harvests more challenging in Brazil.
The next FAO food price index is scheduled to be published on October 6, 2023.
Credit: The Star : News Feed
