Global Food Prices Slashes Down In March: Index

In the month of March the global food prices dropped after a two-year high in February, reports UN Food and Agriculture Organization (FAO).

The food price index declined by 2.8 percent in March from February. However, it was still 13 percent up year-on-year.

The report reveals plentiful supply and expecting bumper harvest are the reasons drop in food prices in March.

The FAO index measures change in prices of basket of oilseeds, dairy products, cereals, sugar and meat as well on a monthly basis.

Only the meat and sugar slashed down about 11 percent in February to the lowest since May 2016, reveals the report.

The meat prices increased by 0.7 percent because of rise in beef and pork demand in Asian market.

Similarly the prices of vegetable oils declined by 6.2 percent due to improved production forecasts the soybean and palm oils too weakened.

The production of rape and sunflower was above expectation and this reciprocated with decrease in prices of rape and sunflower seed oils.

The global cereal production is expected by the agency at 2.6 billion tons, which is about 9 million tons below the record set last year.

The agency added slight drop might be due to small fall in global wheat production in the US, Canada and Australia.