Global food prices decrease by 13.7% in 2023, says FAO
Published on: January 10, 2024.
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World Food Prices Drop in 2023, Rice Prices Rise
PARIS – In 2023, the UN’s Food and Agriculture Organization (FAO) reported a significant decrease in world food prices, specifically for grains and oils, as global supply concerns eased. The FAO stated that overall, food commodity prices fell by 13.7% compared to the previous year. The organization’s cereals price index saw a decline of 15.4%, reflecting well-supplied global markets when compared to 2022.
While supply concerns decreased for wheat and maize, the opposite was true for rice. Rice prices experienced a sharp increase of 21% due to the impact of the El Nino weather phenomenon and India’s restrictions on exports.
The vegetable oil price index saw the largest drop among food commodities, falling by 32.7% thanks to improved supplies and reduced usage for biofuel production. On the contrary, sugar prices increased by 26.7% overall, although they slightly dropped from their peak in December. This decrease can be attributed to increased exports from Brazil and reduced usage for biofuels.
It is important to note that although the FAO’s overall index shows a drop in food commodity prices, consumer food prices in many countries are actually rising, often at a faster rate than the overall inflation rate. Economist and food industry specialist Bruno Parmentier emphasizes that a decrease in food commodity prices does not necessarily translate to a decrease in food prices for consumers.
While the FAO index measures commodity market prices, it may take some time for these changes to impact prices on supermarket shelves. Additionally, it’s crucial to remember that the FAO index represents only a fraction of the cost of processed final products.
Source: [Nation – World Food Prices Fall in 2023](https://www.nation.com.pk){:target=”_blank” rel=”nofollow”}
