FAO Calls Global Food Prices Down 2.1 Percent In August

Food illustration (photo:doc Antara)

JAKARTA - The international food commodity price reference index fell 2.1 percent in August. This decline is compared to July 2023.

According to the United Nations Food and Agriculture Organization (FAO), rice prices jumped by 9.8 percent in August and was the highest price in 15 years compared to the previous month.

This increase was triggered by India's ban on rice exports since July, which has been exacerbated by the seasonal break in rice production in the northern hemisphere.

The overall price for grains and Goods, which is the largest component in the index, fell 0.7 percent due to the high harvest from major producers. The price of corn fell for seven consecutive months due to abundant harvests in Brazil, while the price of wheat fell 3.8 percent due to high harvests in the United States and Canada.

FAO said four of the five sub-indexes had decreased. In addition to a slight decrease in the price of grains andACTS, vegetable oil prices, dairy products, and meat are also lower.

Meanwhile, sugar prices rose by 1.3 percent and more than 34 percent above the previous year's price. FAO said the increase in sugar prices came from concerns about the impact of the El Nino weather phenomenon in the eastern Pacific Ocean.

Sugar production in India is also affected by low rainfall there, while heavy rains make sugar harvest more difficult in Brazil.

FAO's food price index is next scheduled to be published on October 6, 2023.