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Informist, Friday, Jul. 4, 2025

 

MUMBAI – The UN Food and Agriculture Organization's Food Price Index rose 0.5% to 128.0 points in June as increases in the indices of dairy products, meat, and vegetable oil prices outweighed the fall in cereals and sugar. The FAO Food Price Index was nearly 6% higher than a year ago but remained 20.1% below the peak it had touched in March 2022, the organisation said in a report.

 

The Vegetable Oil Price Index averaged 155.7 points in June, up 2.3% on month, and 18.2% higher than a year ago. An increase in prices of palm, rapeseed, and soyoil offset the slight decline in sunflower oil prices. International palm oil prices rose by nearly 5% in June, largely underpinned by strong global import demand amid increased price competitiveness. Soyoil prices also rose in June, influenced by expectations of higher feedstock demand from the biofuel sector following announcements of supportive policy measures in Brazil and the US, the report said.

 

The Meat Price Index averaged 126.0 points in June, up 2.1% on month, driven by higher prices across all meat categories except poultry. On a yearly basis, the index was nearly 7% higher. Global bovine meat prices reached a new peak in June, reflecting tighter export supplies from Brazil and strong demand from the US. Prices of pig meat rose due to firm global import demand amid stable supplies, while ovine meat prices rose sharply for the third consecutive month.

 

Poultry meat prices, however, continued to decline due to ample domestic supplies in Brazil, following the introduction of export restrictions after the detection of high pathogenicity avian influenza in mid-May, the report said.

 

The Dairy Price Index averaged 154.4 points in June, up 0.5% on month and 20.7% on year. The butter price index recorded the largest monthly increase, rising by 2.8% to a new record of 225 points, the report said. The continued upward trend was mainly driven by persistent supply tightness in Oceania and the European Union, coupled with strong import demand from Asia. Cheese prices rose for the third consecutive month on continued solid retail and foodservice demand in east Asia. Skim milk powder prices fell by 0.6%, while whole milk powder prices fell by 2.3% amid subdued demand and ample global supplies.

 

The Cereal Price Index was at 107.4 points in June, down 1.5% on month, and around 7% lower than a year ago. Global maize prices fell sharply for the second consecutive month as rising seasonal supplies in Argentina and Brazil intensified competition across major export origins, it said. Global prices of sorghum and barley also fell in June. Despite the pressure of harvest from the northern hemisphere, global wheat prices rose on month in June, mostly reflecting weather concerns in some key producing areas such as the Russian Federation, parts of the EU, and the US. The FAO All Rice Price Index fell by 0.8% in June, driven by weaker demand for Indica varieties.

 

The Sugar Price Index averaged 103.7 points in June, down 5.2% on month, marking the fourth straight monthly decline and the lowest level since April 2021, when it averaged 100.0 points, the report said. The decline was mainly due to improved supply prospects in key producing countries. Drier weather conditions in Brazil accelerated harvesting and crushing which, together with a greater use of sugarcane to sugar production, resulted in higher-than-expected output in recent weeks, putting downward pressure on global sugar prices.  End

 

Reported by Ashutosh Pati

Edited by Ashish Shirke

 

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