Food Prices Fall 2.1% Globally, Sugar Increases

World food prices dropped for the 12th consecutive month in March, the United Nations Food and Agriculture Organisation disclosed on Friday.

It added that it was the first time the index had dropped for a full year.

FAO’s broad Food Price Index slipped to 2.1 percent in March, and it is now down to 20.5 percent since reaching its all-time peak one year ago after a big surge after the Russia-Ukraine conflict.

Grains and cereals, the largest component in the index, was down to 5.6 percent compared to the previous month and down by 18.6 percent over the last 12 months.

Among the grains and cereals, wheat prices dropped the most, dipping 7.1 percent as exports from Ukraine through the Black Sea assuaged market fears.

Corn prices were 4.6 percent lower as a result of strong production in South America, while rice prices were 3.2 percent lower, due to data from harvest prospects in India, Vietnam, and Thailand.

Prices of vegetable oils were down by 3 percent in March and a staggering 47.7 percent compared to March 2022 figures.

Dairy prices, meanwhile, were down by 0.8 percent, contributing to a decline of 10.7 percent compared to a year earlier, and meat prices inched 0.8 higher in March but were still down by 5.3 per cent over the last 12 months.

FAO said that the softening demand and adaptations to global supply chain obstacles, such as increased competition between suppliers, were the main factors pushing prices lower over the last year.

The main exception to that trend was sugar prices, which increased by 1.5 percent in March, getting to their highest level since October 2016.

Regardless of the falling prices, FAO officials have repeatedly warned in recent months that fuel supply issues and other market uncertainties threaten many of the world’s poorest nations.