The food price index of Food and Agricultural Organisation (FAO) found prices had elevated by 10% year after year and 2.9% on August alone. Anyhow, the outlook for the global food market was considered “stable” and it stressed prices to be “relatively low”. The September increase was because of sugar–added an FAO senior economist Abdolreza Abbassian.
The FAO’s index depicts the monthly variations in price of a bunch of commodities which include dairy products, meat, vegetable oils, cereals and sugar. It measured 170.9 points in the month of September, about 2.9% hike against August, representing the highest value since March 2015. It is because of the most unfavourable conditions of Brazil, which in turn is the world’s largest producer and exporter of sugar. Dairy, meat and vegetable oil prices also increased, but cereal prices registered a decline slightly. Mr Abbassian added that he expects the prices to increase in the coming months but gradually. He added that even though the price rises are good for farmers it is not so good for the consumers. The FAO said that the overall price rises had registered record heights in 2011 and 2012. It added that food markets across the globe will remain ‘balanced’ in the year to come and the prices for agriculture commodities which is internationally traded were relatively low and stable.