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Informist, Friday, Sept. 5, 2025

MUMBAI – The UN Food and Agriculture Organization's Food Price Index was at 130.1 points in August, unchanged from the previous month, as declines in cereal and dairy price indices were offset by increases in the indices for meat, sugar and vegetable oils. The FAO Food Price Index was nearly 7% higher than a year ago but remained 18.8% below the peak it had touched in March 2022, the organisation said in a report.

The Vegetable Oil Price Index rose to 169.1 points in August, up 1.4% on month, reaching its highest level since July 2022. The increase was driven by higher quotations for palm oil, sunflower oil and rapseed oil, which more than offset the decline in soyoil prices, according to the report. Global palm oil prices rose for the third consecutive month in August, largely due to robust global import demand and news of Indonesia's intention to further raise its biodiesel blending mandate in 2026, it said.

Global sunflower and rapeseed oil prices increased on tightening supplies in the Black Sea region and in Europe, respectively. On the other hand, world soyoil prices edged lower, mainly reflecting prospects of ample global soybean supplies, the organisation said.

The Cereal Price Index was at 105.6 points in August, down nearly 1% on month, and over 4% lower than a year ago. Global wheat prices declined month-on-month, reflecting ample global supplies and subdued import demand, especially from major buyers in Asia and North Africa. Higher production in the European Union and the Russian Federation further weighed on prices.

However, global maize prices rose for the third consecutive month, mostly due to concerns over the impact of heatwaves on yields in the European Union and the increased demand for feed use and ethanol production, especially in the US. the other coarse grains, world prices of sorghum decreased while those of barley increased. Meanwhile, the FAO All Rice Price Index fell by 2.0% in August 2025, driven by lower Indica prices amid continued competition among exporters.

The Sugar Price Index averaged 103.6 points in August, up 0.2% on month, after five consecutive monthly declines, but it was still down 9% from its level a year ago. The increase was mainly driven by concerns over Brazil's production outlook, amid reduced sugarcane yields and low sugar recovery rates in key southern growing regions. 

Additionally, stronger global sugar import demand, particularly from China, exerted further upward pressure on prices. However, expectations of larger crops in India and Thailand, owing to favourable weather conditions, limited the overall price increase, the report said. 

The Meat Price Index averaged 128.0 points in August, up 0.6% on month and nearly 5% on year, marking a new all-time high. The rise was driven by continuing higher bovine and ovine meat prices, which outweighed largely stable pig meat and lower poultry meat prices. 

Global bovine meat prices reached a new record high, underpinned by strong demand from the US, which boosted Australian quotations, and firm import demand from China, which kept Brazilian export prices firm despite reduced sales to the US following the imposition of additional tariffs. Ovine meat prices rose for the fifth consecutive month, reflecting tight export supplies in Oceania. World pig meat prices remained broadly steady amid balanced global demand and supply conditions, according to the report.

The Dairy Price Index averaged 152.6 points in August, down 1.3% on month, marking the second consecutive monthly decline while remaining 16.2% above its level a year ago. The decrease reflected lower international prices for butter, cheese, and whole milk powder outweighing higher skim milk powder prices.

Butter prices declined by 2.5% in August, as robust production in New Zealand—despite the country's seasonal output lull—and steady supplies from the European Union boosted global availability, while import demand, especially from Asia, remained subdued. Cheese prices declined by 1.8%, reversing increases since April, with softer demand from key Asian markets and seasonally low export activity weighing on Oceania markets, while in the European Union, weaker domestic demand during the holiday period and increased export competition added pressure on cheese prices.

By contrast, skim milk powder rose by 1.8%, driven by limited exportable surpluses in New Zealand and steady demand from Southeast Asia.  End

Reported by Taniva Singha Roy

Edited by Deepshikha Bhardwaj

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