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Informist, Friday, Nov. 7, 2025

MUMBAI – The Food and Agriculture Organization's Food Price Index fell 1.6% on month in October to 126.4 points, marking its second consecutive monthly decline. Lower price indices for cereals, dairy products, meat, and sugar outweighed an increase in the vegetable oil index. Overall, the index was slightly below its October 2024 level and remained 21.1% lower than its peak in March 2022, according to an FAO release on Friday.

The sugar price index at 94.1 points was down 5.3% on month on anticipated larger outputs from Thailand and India, where early crushing operations have started, it said. Moreover, favourable weather conditions in Brazil's key southern growing regions supported a strong pace of production, it added.

"Additionally, lower international crude oil prices exerted further downward pressure on world sugar prices, through lower demand by the biofuel sector."

The cereal price index averaged 103.6 points in October, down 1.3% from September, with price indices of all the major cereals declining month-on-month. The wheat price index fell 1%, mostly reflecting ample global supplies, favourable production prospects in the Southern Hemisphere, where harvesting is underway, and steady progress of winter wheat planting across the Northern Hemisphere. The coarse grain index declined 1.1% in October, with lower quotations for barley, maize and sorghum.

However, the Food and Agriculture Organization noted that the downward pressure on prices was partly offset by reports of reduced maize yields in the European Union and potentially also in the US, as well as news of trade agreements between China and the US.

The FAO All Rice Price Index fell 2.5%, driven by intensified competition for markets and the start of harvests in several Northern Hemisphere-exporting countries, the report stated.

The FAO Vegetable Oil Price Index averaged 169.4 points in October, up 0.9% from September and reaching its highest level since July 2022. The increase reflected higher quotations for palm, rapeseed, soy and sunflower oils.

"International palm oil prices rebounded slightly after easing in the previous month, supported by expectations of tighter exportable supplies following Indonesia's planned increase in biodiesel blending mandates in 2026, and despite higher-than-expected production in Malaysia," the report observed.

World sunflower oil prices rose for the fourth consecutive month in October, largely due to limited supplies from the Black Sea region amid harvest delays and cautious farmer sales. Global rapeseed and soy oil prices increased on account, respectively, of persistent tight supplies in the European Union and higher domestic demand in Brazil and the US, the release said.

The meat price index at 125 points in October was down 2% on month. After eight consecutive monthly increases, the decline was driven by sharp drops in pig and poultry meat prices and a fall in ovine meat prices, partially offset by higher bovine meat quotations.

The price index for dairy products fell 3.4% on month to 142.2 points in October, marking the fourth consecutive monthly decline. The sub-indices for butter, whole milk powder, skim milk powder, and cheese declined during the month due to good supply, according to the release.  End

Reported by Abhijit Doshi

Edited by Nishant Maher

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