World food prices drop for fifth consecutive month

World food prices drop for fifth consecutive month

Dubai: World food prices have fallen for a fifth consecutive month but are still nearly 8 per cent higher than a year ago, the UN Food and Agriculture Organization (FAO) reported on Friday. Its latest Food Price Index shows that the prices of five commodities - cereals, vegetable oil, dairy, meat and sugar - were lower in August than in July. The Index tracks the monthly international prices of these breadbasket staples. It averaged 138.0 points last month, down nearly 2 per cent from July, though 7.9 per cent above the value a year before. FAO said the decline in cereal prices reflected improved production prospects in North America and Russia, and the resumption of exports from Black Sea ports in Ukraine. A landmark agreement to unblock Ukraine grain exports amid the ongoing war was signed in July by the country, Russia, Türkiye and the UN. Rice prices on average held steady during August, while quotations for coarse grains, such as maize, increased marginally. Vegetable oil prices decreased by 3.3 percent, which is slightly below the August 2021 level. FAO attributed this to increased availability of palm oil from Indonesia, due to lower export taxes, and the resumption of sunflower