Global food prices down

Global Food prices eased during the month of March breaking an eight month surge, according to the UN Food and Agriculture Organization.

The average price of key commodities including oils, sugar and cereals fell by three percent.

FAO says the decrease was marginal and global food prices still remain high.

David Hallam from FAO says the drop in food prices brings some welcome respite, but it would be premature to conclude that this is a reversal of the surge in global food prices seen in recent times.

“We need to see the information on new plantings over the next few weeks to get an idea of future production levels. But low stock levels, the implications of events in the Middle East and North Africa on oil prices and the effects of the destruction in Japan all make for continuing uncertainty and price volatility over the coming months,” said Hallam.

During the month of March global cereal prices were down 2.6 percent, while the price of oils and fats were down 7 per cent. The price of sugar fell by 10 per cent.