• In cereals, the index increased by 7%, driven by a monthly increase of 11,2% in the price of corn, which registered an increase of over 40% in the last year
The global price of basic food products rose - in January - to the highest level since July 2014, driven by the increase in the price of cereals, oil and sugar - due to increased demand and climate change, announced the UN agency in charge of Agriculture and Food (FAO), reports AFP.
The FAO food price index, which tracks the monthly variations in international prices of the most frequently traded food products – sugar, oils, dairy products, meat – rose to an average of 113,3 points, 4,3% more than in December 2020, and thus reached the highest level since July 2014, says FAO.
Strong rise in sugar and corn
Sugar recorded the highest price increase in January - by 8,1% compared to December - due to climatic factors, "availability fears" and the increase in the price of oil and the exchange rate of the Brazilian real.
In cereals, the index increased by 7%, driven by a monthly increase of 11,2% in the price of corn, which registered an increase of over 40% in the last year.
Corn rose due to both China's enormous appetite and a "world supply squeeze", amid estimates of lower-than-expected stocks in the United States and a temporary suspension of exports to Argentina.
The price of wheat increased by 6,8% in January, in the context in which the largest exporter in the world - Russia - decided to double its export tax in March, thus reducing its sales.
This upward trend is also registered in rice, supported by a "strong demand from Asian and African buyers".
Vegetable oils, the biggest shakeup since 2012
And vegetable oils rose in price by 5,8%, the highest level since May 2012, says FAO. This rise is explained by "weaker than expected palm oil production in Indonesia and Malaysia due to excessive rains and a persistent shortage of migrant workers and prolonged strikes in Argentina".
