July 25, 2024

FAO Food Price Index Declines in August, Despite Rice, Sugar Surge

The United Nations Food and Agriculture Organisation (FAO) has released a report stating that global rice and sugar prices have experienced a significant increase, despite a decrease in prices for most other food commodities in August.

This report confirms the recent surge in prices for rice and sugar in Nigeria and other food items. The FAO Food Price Index for August revealed a new two-year low in global food prices, countering the previous month’s rebound, as the decline in prices for most food commodities were offset by increases in rice and sugar.

According to the FAO, the price index, which monitors the prices of the most widely traded food commodities worldwide, averaged 121.4 points in August, compared to a revised 124.0 for the previous month. This information was shared by the agency on Friday.

“Uncertainty about the ban’s duration and concerns over export restrictions caused supply-chain actors to hold on to stocks, re-negotiate contracts or stop making price offers, thereby limiting most trade to small volumes and previously concluded sales,” the FAO explained.

The agency added the increase in sugar prices was “mainly triggered by heightened concerns over the impact of the El Niño phenomenon on sugarcane crops, along with below-average rains in August and persistent dry weather conditions in Thailand”, another key producer of rice, too. Capping the rise in sugar, was the “large crop” being harvested in Brazil, it said.

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