The food price index calculated by the ‘Food and Agriculture Organization (FAO) shows that the monthly changes in the cost of a basket of oilseeds, cereals, meat, dairy products, and sugar have hit a 7 years high mark. The average price index in March was 118.5, slightly higher as compared to that of February when it was 116.1.
Changes in Production Pattern and Export Schedule Affected the Price Rate
Though the annual production and harvest of cereals globally remained on point in the last year, it still affected the price rates of the food items. It is so because the export schedule and pattern changes of the prediction are compromised due to the pandemic and lockdown circumstances. The FAO survey suggests that the cereal price index fell majorly last month, with a 1.7 percent fall. Wheat export price has been affected the most. While vegetable oil, dairy, and meat price index saw a rise, sugar and other cereal prices saw a downfall.
What it means for the Global Food Industry
It is very unfortunate that apart from the pandemic and economic crisis that we are already dealing with, we also have to go through higher food price indices. If steps are not taken to control the surging prices then it would affect the economy even more in the coming years. The poor section of the society will suffer majorly and many places across the world may face drought-like situations as well.
TPT Policy Advocacy and Recommendations
- The global leaders must take the matter into their hands and provide enough leverages to import and export duties to balance the gap created in the last few months.
- To control the rising food price of cereals, the government must ensure the agricultural sector does not suffer. The farmers must be provided with ample monetary benefits and other facilities so that they can continue to make their products efficiently.