Global Food prices rise at rapid pace: Read UN Food & Agriculture Organization's statement

Global food prices surged to their highest level in nearly a decade in May, the UN Food and Agriculture Organization said on June 3. The Food and Agriculture Organization of the United Nations tracks the changes in the international prices of commonly-traded food like cereals, sugar etc. The FAO Food Price Index stood at 127.1 points in May, 4.8 per cent higher than in April and 39.7 per cent higher than in May 2020. The increase in food price index was caused due to the rise in the international prices of vegetable oils, sugar and cereals. 

Global food prices rising at rapid rate

The Rome based FAO said that the international prices of commonly-traded food like cereals, sugar etc reached their highest value since September 2011 and only 7.6 per cent below its all-time peak. Harvest delays and reduced crop yields in Brazil, which is the world's largest sugar exporter resulted in FAO Sugar Price Index getting increased by 6.8 per cent from April. The FAO Vegetable Oil Price Index increased by 7.8 per cent in May, as a result of rising palm, soy and rapeseed oil quotations. 

According to UN FAO, Cereal Price Index increased 6.0 per cent from April, driven by international maize prices, which stood at 89.9 per cent above their price in 2020. UN FAO noted that there is an increase in price even as world cereal production is going to reach a new record high. The International wheat prices averaged 6.8 per cent higher in May than in April. The International Rice Price remained steady while the FAO Meat Price Index increased by 2.2 per cent from April. The FAO Dairy Price Index rose by 1.8 per cent in May averaged 28 per cent above its price in 2020. Solid import demand for skim and whole milk powders led to a price hike. However, there was a decrease in butter prices for the first time due to the increased export supplies from New Zealand. The FAO in a separate report said that it expects a 1.9 per cent increase in cereals production this year to a record 2.82 million tonnes.

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