Rabat – International food prices are on the decline, albeit marginally, according to the latest Food Price Index report from the United Nations’ Food and Agriculture Organization (FAO).
Of the index’s five categories, three witnessed a decline since the last index published in February. While vegetable oils, dairy, and meat all saw a decrease, sugar prices continued increasing, reaching their highest levels since February 2017.
The rise in sugar prices was mainly caused by a “downward revision” to the 2022-23 production forecasts in India, said the FAO. Favorable crop projections in other suppliers and lower fuel prices stopped the price from going even higher.
Meanwhile, the cereals price index remained “virtually unchanged” from January, as concerns over dry conditions in the US and growing demand from Australia were countered by strong exports from other parts of the world.
Rice prices rose by 1% as most major Asian exporters slowed down their activities against a background of their currencies also depreciating, the FAO said.
Where meat prices were concerned, a rise in the prices of red meats was balanced by a continuous decline in poultry prices, as export supplies remained abundant despite some avian influenza outbreaks.
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Despite the decrease in the index, worries persist regarding the world’s food situation, especially as natural disasters and international conflict leave the price situation vulnerable to change.
The FAO noted recently in its quarterly report that 45 countries around the world need external assistance for food, including 33 in Africa. Additionally, residents of six countries are expected to experience severe levels of acute food insecurity.
And while the food price index shows decreased numbers, the organization added that domestic food price inflation remained “prohibitively high” in many countries, with production downturns and currency issues exacerbating the issues.
Food prices around the world witnessed a sharp increase in 2022 as the Russia-Ukraine war caused global supply chains and exports to be disrupted. The conflict came at a time where most countries were only starting to emerge from the COVID-19 pandemic, which equally impacted prices and purchasing power.
