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Informist, Friday, Feb. 7, 2025

 

MUMBAI – The UN Food and Agriculture Organization's Food Price Index fell 1.6% on month to 124.9 points in January due to a fall in sugar, vegetable oils, and meat prices, the organisation said in a report. The Food Price Index in January was 6.2% higher than a year ago, but 22?low its peak of 160.2 points touched in March 2022, as per the report.

 

The Sugar Price Index averaged 111.2 points in January, down 6.8% on month and 18.5% on year, marking its lowest level since October 2022. Sugar prices fell on improved global supply prospects for the current sugar season. Additionally, the decision by India to resume sugar exports after limiting them since October 2023 exerted further downward pressure on world sugar prices, according to the report.

 

The Vegetable Oil Price Index fell 5.6% on month to 153 points in January on lower global palm and rapeseed oil prices. However, the index was up 24.9% on year, according to the report. After rising for seven consecutive months, international palm oil prices declined from multi-year highs, largely because of demand rationing, the organisation said.

 

The Meat Price Index was at 117.7 points in January, down 1.4% on month, driven by lower global ovine, porcine, and poultry meat prices, which outweighed increases in prices of bovine meat. On a yearly basis, the index was 8.1% higher.

 

Pig meat prices fell on lower prices in the European Union, where an outbreak of foot-and-mouth disease in Germany triggered import bans by key importing European countries, resulting in abundant surplus supplies, the organisation said in the report. Poultry meat prices also softened, reflecting ample supplies, particularly from Brazil, where competitive feed prices supported production, it said.

 

The Cereal Price Index averaged 111.7 points in January, up 0.3% on month but down 6.9% on year. Wheat export prices dropped slightly with little movement during the month because of weak import demand, leading to slower export sales from major exporters, according to the report. However, tighter supplies in Russia and mixed winter crop conditions in parts of the European Union, Russia, and the US supported prices.

 

Global maize prices rose in January, mainly because of seasonally tight supplies, unfavourable conditions in Argentina after the completion of planting, slow progress in Brazil's main crop, safrinha, along with revised, lower maize production and stock forecasts in the US, the organisation said in its report. Amongst other coarse grains, prices of sorghum and barley increased, according to the report. The FAO All Rice Price Index declined by 4.7% on month in January due to lower quotations of Indica and fragrant rice.

 

The Dairy Price Index rose 2.4% on month to 142.9 points in January due to higher cheese prices, the organisation said in its monthly report. In the dairy basket, butter prices continued to decline despite rising demand from food processors in Europe and Oceania. Global prices of both skimmed and whole milk powders also declined owing to a recovery in production in Europe and sluggish domestic and import demand.  End

 

Reported by Ashutosh Pati

Edited by Nishant Maher

 

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