FAO Food Price Index – January 2023

February 4, 2023

The Food Price Index tells the “monthly” price changes in world food prices. In January 2023, the World Food Price Index was 131.2. This is 0.8% less as compared to that of the food prices in December 2022. The major price decrease was in sugar and meat. The prices of vegetable oil fell by 2.9%. Prices of cereals remained unchanged.

Key Findings

Wheat prices decreased for the 3^rdtime. They have been declining since December 2022. This is because the production of wheat in Australia, Russia, Argentina, and Brazil has been good.
Prices of cheese increased

Why did the sugar and meat prices decrease?

Due to favorable weather conditions in Brazil and good harvest in Thailand, the sugar prices decreased. There were concerns in sugar productivity such as decreased crop yields in India and increasing gasoline prices in Brazil. However, the former conditions outweighed the latter.

Why did the vegetable oil prices decrease?

Increased production of rapeseed oil and sunflower seeds.

What did the report say about India?

The report has forecasted “record planting” for India. Meaning, India is to increase its plantings in coming days. Food prices are increasing in India.