United Nations: Rising prices of cereals, meat and dairy products have pushed the global food price index up by 1.4 per cent compared to last month and 7.0 per cent compared to last year.

According to the UN Food and Agriculture Organisation (FA), the rise in the Food Price Index — a measure of the monthly change in international prices of a basket of food commodities — was largely because of surging prices of high-protein wheat due to deteriorating crop conditions in the United States.

“June marked the second successive month of increase in the value of the Food Price Index,” read an update issued by the United Nations agency.

On the other hand, price indices for vegetable oils and sugar declined by 6.5 points (3.9pc) and nearly 31 points (13.4pc), respectively, it added.

The fall in the Sugar Price Index marked a new 16-month low. The prices have fallen steadily since February, with the continued decline reflecting large export availabilities, in particular robust Brazilian supplies.

“Weak import demand has exerted further downward pressure on [sugar] quotations, especially as purchases by the world’s leading importer, China, have slowed following the imposition of high import tariffs,” said FAO.

“World cereal stocks are expected to expand further to a new record high of around 704 million tonnes,” said the UN agency, announcing its updated Cereal Supply and Demand Brief.

According to the brief, the June forecast for global wheat output in 2017 were revised down, while those of maize and rice rose and global cereal production this year is likely to total 2,593 million tonnes, some 0.6pc below that of 2016.

Published in Dawn, July 7th, 2017