The reference index of international food commodity prices fell for the twelfth consecutive month in March, down 2.1% compared to February and down 20.5% compared to the same month of 2022, the FAO reported this Friday. .
According to the Food and Agriculture Organization of the United Nations (FAO), this fall in the index is mainly due to the fall in the world market prices of grains and vegetable oils.
The UN agency reported on Friday that the food price index averaged 126.9 points in March, down 2.1% from the previous month, and “supply, subdued demand for imports and the extension of Ukraine’s grain agreement and Russia contributed to the decline”.
The FAO grain price index fell 5.6% from February and wheat fell 7.1%, driven by strong production in Australia, better growth conditions in the European Union, increased supply from the Russian Federation and continued exports from Ukraine from its seaports.
While world corn prices fell 4.6%, in part due to expectations of a record harvest in Brazil, rice prices fell 3.2% following data on current or upcoming harvests in key exporting countries, including India, Vietnam and Thailand.
“Although prices have fallen globally, they remain very high and continue to rise in domestic markets, posing an additional challenge to food security,” the agency explained.
“This is especially the case for developing countries that are net importers of food, whose situation is exacerbated by the devaluation of their currency against the dollar or the euro and the growing debt burden,” said Máximo Torero, chief economist at the FAO.
Source: DN
