Food prices across the world jumped by around 13 percent in March, a new record high as the war in Ukraine continues. The Russia-Ukraine war is causing turmoil in markets across the world for edible oils and staple grains said the UN agency
Food prices rise as the crisis continues
The UN food agency on Friday revealed that food prices were the highest in March 2022. According to the Food and Agriculture Organization‘s (FAO) index tracking the food commodities traded the most globally, it averaged 159.3 points in March. However, it was around 141.4 in February. The turmoil is on the rise as Ukraine and Russia are major exporters of sunflower oil, wheat, barley, and corn through the Black Sea. Moscow’s invasion of Ukraine is stalling exports from the Ukranian end.
The disruption of supplies is exacerbating an increase in the cost of food commodities. Before the war in Ukraine, global harvest issues were rising costs to a 10 year high. Last month, the FAO stated that food and feed prices can rise by about 20 percent as a result of the conflict. This can also be a rising risk of malnutrition. The FAO’s cereal price index rose by 17 percent in March. Additionally, the vegetable oil index rose by 23. The indices are registering an all-time high reading. “Sugar and dairy prices also rose sharply last month,” added the FAO.
Estimates of cereal and other edibles for the year
In a different supply and demand estimate of cereal prices, the FAO on Friday reduced the projection to 784 million from 790 million last night. The change is factoring in the possibility that a minimum of 20 percent of crops from Ukraine will not be harvested. However, the revised global wheat output estimate is one percent above last year’s level.
“Projected world cereal stocks at the end of 2021/22 were revised up by 15 million tonnes to nearly 851 million tonnes, mainly because of expectations that export disruption will lead to bigger stockpiles in Ukraine and Russia,” added the report.