Calay News
According to the Food and Agriculture Organization of the United Nations (FAO), after one year, world food prices increased slightly in April due to higher sugar prices. The FAO Food Price Index, which tracks international prices for a basket of basic products, rose 0.6% compared with March. Although this increase represents a decrease of 19.7% compared to the previous year, prices are still relatively high.
In particular, the FAO Sugar Price Index increased by 17.6% compared to March, reaching a record level since October 2011. A drop in production is expected in India, China, and Thailand, linked in particular to the drought. In addition, the slow start to the sugarcane harvest in Brazil and the increase in international crude oil prices are driving prices up.
However, with the exception of the prices of meat and rice, which also increased slightly, all the other indices, particularly those of cereals (-1.7%) and vegetable oils (-1.3%), continued their decline in April. FAO Chief Economist Máximo Torero warned of the need to closely monitor price developments and growth factors as demand for food will increase as economies recover from recession, which could exert upward pressure on food prices.
In summary, world food prices experienced a slight increase in April after a year of decline. This increase is mainly due to the increase in sugar prices, while the prices of other basic products, such as cereals and vegetable oils, continued to decline. The FAO warns of the need to closely monitor price developments due to the expected increase in demand as economies recover from recession.
