Food prices worldwide experienced a notable increase in September, recording the largest rise seen in 30 months. This surge was primarily driven by sugar prices and was generally reflected across most food products, according to a monthly report released by the Food and Agriculture Organization (FAO) on Friday.
After several months of stagnation, the price index calculated by the FAO, which monitors international price fluctuations for a basket of staple commodities, rose by 3% from August to September and recorded a year-on-year increase of 2.1%.
Specifically, the sugar price index soared by 10.4% in September due to dismal forecasts for sugarcane production in Brazil, a country grappling with drought and wildfires. Additionally, India’s decision to lift restrictions on using sugarcane for ethanol production has raised concerns about potential reductions in export availability, according to the FAO.
The vegetable oils index also climbed by 4.6% since August, influenced by decreased palm oil production in major Southeast Asian countries and rising prices for soybean, sunflower, and rapeseed oils.
In the cereals sector, there was a month-on-month increase of 3%, propelled by rising export prices for wheat and corn. These increases were affected by rainfall impacts on crops in Canada and the European Union, as well as transportation challenges in Brazil and the United States.
Conversely, rice markets experienced a relatively stable environment, with its price index declining by 0.7%, as noted by the FAO.
For 2024, the FAO has slightly revised its cereal production forecasts upward to 2.853 million tons, just shy of the record established in 2023. Global wheat production is anticipated to rise by 0.5% this year compared to last, bolstered by good yields in Australia that offset disappointing harvests in Europe. Meanwhile, rice production is expected to reach a “record high,” particularly driven by output from India, according to the FAO.
The dairy price index also saw an increase of 3.8% in September, while meat prices remained relatively stable, with a modest rise of 0.4%. Notably, sheep meat prices even showed a slight decline.
