The benchmark index of international food commodity prices has declined 2.1 percent compared to July, the United Nations Food and Agriculture Organization (FAO) said Friday.
The prices of rice, however, surged by 9.8 percent in August to a 15-year high compared to a month earlier. The increase was triggered by India’s rice export ban from July, complicated by a seasonal lull in production between rice harvests in the Northern Hemisphere.
Overall prices for grains and cereals, the largest component in the index, slipped by 0.7 percent due to strong harvests from major producers. Corn prices fell for the seventh consecutive month based on bumper crops in Brazil, while wheat prices were 3.8 percent lower based on strong harvests in the United States and Canada.
Four out of the five main sub-indices, according to FAO, witnessed reductions. Along with a minor decrease in price for grains and cereals, prices fell for meat, dairy goods, and vegetable oils.
In contrast, sugar prices increased by 1.3% and are now over 34% higher than they were a year ago. According to FAO, the rise in sugar prices was caused by ongoing worries about the effects of the El Nio weather phenomena in the eastern Pacific Ocean. Low rainfall in India also reduced sugar production, and Brazil’s sugar crop was hampered by strong rains.
On October 6, 2023, the next FAO food price index is slated for release.
