The United Nations Food and Agriculture Organization in its report on Thursday said that the prices of essential commodities have gone up by 3.9 percent globally, in the month of October. The report said that the unfavorable weather conditions have led to the increase of prices in the world markets.
The ‘FAO Food Outlook’ report released by the Organization said that its Food price index has averaged 162 points in October, 3.9 percent more than the previous month.
The Cereal Supply and Demand Brief of the United Nations agency estimated 2.23 billion tonnes of Cereal Production in October 2015, slightly lower by 1.1% when compared to the previous year record output. The Food and Agriculture Organization said that the reductions in the estimations are due to the dimmed Maize harvests in India and Ukraine, with adverse weather conditions of El nino.
In addition to the prevailing conditions, the drought conditions in Thailand lead to the weaker estimations of global rice production. The report projected that the rice harvest has increased in the European Union when compared to the other countries in the current season.
On the other hand, the FAO’s sugar price index rose by 17.2 percent due to the fears of excessive rainfalls in Brazil and the prevailing drought conditions in India and Brazil. The Diary price Index has also increased by 9.4 percent in the month of October when compared to September, the UN Agency reported.
The FAO Food price index is a trade-associated index which tracks the food prices of International markets.