The price of food in a basic basket has risen worldwide. The signal given by the Organization for Agriculture and Food

Cos de cumparatur la supermarket. Foto: I say Photos/Cornel Putan

Prices for sugar, vegetable oils and some cereals have risen, so the global food cost index rose in August after two consecutive months of decline, the Food and Agriculture Organization of the United Nations (FAO) said on Thursday.

The FAO report examines price changes in a  food basket consisting of cereals, vegetable oils, dairy products, meat and sugar.  In August, this index rose to 127.4 points, from a revised value of 123.5 points in July.

At an annual rate, prices rose 32.9% in August, Reuters reports.

According to the FAO,  grain prices  rose by 3.4% in August compared to the previous month. Estimates of lower production by some major exporting countries reduced the price of wheat by 8.8%, while the price of barley rose by 9%. In contrast, corn and rice prices fell last month.

The price of vegetable oils  rose by 6.7% in August compared to the previous month, and dairy prices fell slightly.

In contrast, the  price of sugar  rose by 9.6%, amid uncertainties over production in Brazil, the world’s largest exporter of sugar.

Due to this year’s persistent drought in several major grain-producing countries, the  FAO has worsened estimates of global grain production this year to almost 2.788 billion tonnes, down from the previous forecast of 2.817 billion tonnes.

The most significant revision was in the case of wheat production, down 15.2 million tonnes from the July estimate of 769.5 million tonnes, mainly due to adverse weather conditions in the United States, Canada, Kazakhstan and Russia.

According to recent forecasts published by the Food and Agriculture Organization of the United Nations (FAO) and the Organization for Economic Co-operation and Development (OECD), the price of agricultural and food products is expected to correct in the first years of 2021-2030.

You May Also Like

More From Author