The Food Price Index released by the Food and Agriculture Organization of the United Nations (FAO) last week says that the global food prices have decreased by 20.5% from their peak last year.
As reported by TASS, 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. /// nCa, 11 April 2023