ROME: In the year 2023, international food prices experienced a drop, particularly in oils and grains, as emphasized by the Food and Agriculture Organisation on Friday.
The overall decrease in world food commodity prices amounted to 13.7 % in 2023 compared to the previous year, as reported by FAO.
The cereal price index specifically showed a substantial cut of 15.4 percent, reflecting well-supplied international markets. This marked a contrast to 2022, when prices increased following Russia’s invasion of Ukraine, a key grain exporter.
Global Food Prices Decline in 2023
Maize and wheat saw eased supply concerns, contributing to the drop in the cereal price index. However, the prices of rice experienced a conflicting trend, surging by 21 % due to the impact of the El Nino weather phenomenon.
The vegetable oil price index reported the most significant drop, decreasing by 32.7 %. This decrease was attributed to enhance supplies and reduce usage for biofuel production.
Similarly, sugar prices increased by 26.7 % overall. While they also retreated from their December highs, factors such as Brazil’s increased exports and decreased biofuel usage played a role in the upward trend.
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Despite the FAO’s overall index showing a decrease, consumer food prices in many parts of the world are on the rise, often outpacing the overall inflation rate. Experts said that that a decrease in food commodity prices doesn’t translate to lower food prices for consumers.
