The World Agricultural Price Index fell to its lowest level in two years in June this year, due to cheaper sugar, oil, dairy products and cereals, FAO reports.
The FAO Food Price Index, which tracks monthly changes in international prices for commonly traded food commodities, averaged 122.3 points in June, down 1.4 percent from May and 23.4 percent from March 2022, when it peaked.
The FAO Cereal Price Index decreased by 2.1% compared to May. International feed grain quotations in June decreased by 3.4% due to an increase in corn supplies as a result of the harvest in Argentina and Brazil and improved production prospects in key US production areas.
International wheat prices fell by 1.3% as harvesting began in the Northern Hemisphere, driven by ample supply and lower export taxes in Russia, as well as improved conditions in the United States.
High domestic food prices, which differ from the FAO Food Price Index, are causing alarming levels of hunger in Africa, Asia, as well as Haiti, Ukraine and Venezuela. However, the UN predicts that global grain production in 2023 will grow by 1.1% compared to the previous year.