Global food prices decreased in 2023, experiencing significant drops for grains and oils as supply concerns eased, as reported by the UN’s Food and Agriculture Organization on Friday.
World food commodity prices fell by 13.7 percent in 2023 compared to the previous year, as reported by the Rome-based FAO.
Last year, the FAO’s cereals price index declined by 15.4 percent, indicating well-supplied global markets in contrast to 2022 when prices surged following Russia’s invasion of Ukraine, a significant grain exporter.
El Niño and Export Restrictions Impact Food Prices:
As supply concerns alleviated for wheat and maize, the situation was reversed for rice, driven by the impact of the El Niño weather phenomenon and India’s export restrictions. Rice prices surged by 21 percent last year.
Continue Exploring: India prohibits non-basmati white rice exports amidst supply concerns
Last year, the vegetable oil price index experienced the most significant decline, plummeting by 32.7 percent, attributed to enhanced supplies and decreased utilization for biofuel production.
Contrarily, sugar prices surged by 26.7 percent overall last year, although they pulled back from their peak in December, thanks to increased exports from Brazil and a reduction in biofuel utilization.
Despite the decline in the FAO’s overall index, consumer food prices are notably increasing in many countries, often surpassing the overall inflation rate. The FAO’s index gauges commodity market prices, showing a delay in reflecting consumer prices, which are additionally influenced by energy and labor costs during processing and distribution.
