ROME, April 7. /TASS/. In March, global food prices decreased 20.5% from their peak a year ago, according Food Price Index released by the Food and Agriculture Organization of the United Nations (FAO) on Friday.
According to the FAO, the index fell for the 12th consecutive month in March 2023, averaging 126.9 points, down 2.1% from the previous month and 20.5% below its March peak in 2022. This is made possible by a combination of supplies, reduced demand for imports, and the expansion of the Black Sea Grain Initiative, the statement said.
The Cereal Price Index, in particular, fell by 5.6% compared to February, while world wheat prices fell by 7.1%. "International wheat prices fell the most, by 7.1%, driven by ample global supplies and strong competition among exporters. The extension of the Black Sea Grain Initiative, allowing Ukraine to continue to export from its Black Sea ports, also contributed to the decline. Higher estimates for Australia’s production, along with improved crop conditions in the European Union this month, boosted the global supply outlook further. Strong competition from the Russian Federation, where high supplies continue to support competitive prices, also sustained the downward pressure on markets," the statement said.
Global maize prices decreased 4.6% "pressured by seasonal availability from harvests in South America, expectations of a record output in Brazil, and the extension of the Black Sea Grain Initiative." Meanwhile, international rice prices eased by 3.2% in March, "weighed by ongoing or imminent harvests in major exporting countries, including India, Vietnam, and Thailand."
The Vegetable Oil Price Index fell by 3% on average from the previous month and 47.7% lower than the figure for March 2022. "The decrease in the index was the net result of lower soy, rapeseed and sunflower oil quotations more than offsetting higher world palm oil prices," the FAO said.
The Sugar Price Index rose by 1.8% in March in comparison with February, "marking the second consecutive monthly increase and reaching its highest level since October 2016". "The increase in prices mostly resulted from concerns over lower global availabilities of sugar in the 2022/23 season, following declining production prospects in India, Thailand and China. However, the positive outlook for the sugarcane crops in Brazil, about to be harvested, limited the upward pressure on world sugar prices," the organization said.