Again, the food prices of products have fallen drastically in the whole world. The Food and Agriculture Organization of the United Nations (FAO) has shown that the average price of various food items worldwide decreased significantly in the outgoing August. Again it has fallen to the lowest in the last 2 years.
This information has been revealed in a report by the news agency Reuters . It is said that the FAO index monitors the price of food grains around the world. It was around 121.4 points in August. In the previous month (April) it was 124.
Earlier in June there was a massive fall in the prices of foodgrains across the world. Which was the lowest in last 2 years. In that month the index was 123.9 points. But it turned around in July. Again, global food prices rose to the highest level in 2 years.
The FAO index fell again in August. Global food prices fell last month to the lowest level since March 2021. That is, it was not so cheap in the last 2 years.
At the end of February 2022, Russia launched a military operation in Ukraine. Global food prices hit an all-time high in March the following month. Since then, the price has fallen by 24 percent.
In a statement, FAO said that the prices of dairy products, cereals, edible oil and meat have decreased significantly in the recently concluded August. The possibility of renewing the Russia-Ukraine grain export agreement through the Black Sea port has arisen. If this materializes, the supply in the world market may increase. As a result, this downward trend has been created.
However, the price of rice continues to rise around the world. Already in the world market it has reached the highest level in the last 15 years. India, the world’s top exporter, has banned the export of the food product.
Besides, the production of consumer goods has decreased in the top producing countries including China, Thailand due to adverse weather conditions. This has reduced the supply in the international market. As a result, this superiority has been created.
According to the FAO index, cereal prices around the world fell by 0.7 percent in August compared to last July. The price of wheat has gone down. In the current season, production has increased in Northern Hemisphere countries. As a result, this downward trend has been created.
The price of maize has also fallen. It is lowest in last 3 years. Brazil, the world’s largest producer, produced records. Yields have improved in the US, one of the largest suppliers. As a result, this downward trend has been created.
Global edible oil prices fell by 3.1 percent. Global prices of dairy products fell by 4 percent. Production increased in the Oceania region. Also imports to China have decreased. As a result, this decline has occurred. Besides, the price of meat has decreased.
Sugar prices have gone up by 1.3 percent in August under discussion. That is 34 percent higher than the beginning of this year. Adverse weather can disrupt production in the world’s major producing countries. As a result, the price of this consumer product is high due to the fear of supply shortage.