FAO Food Price Index rises in April; sugar prices decline
The FAO Food Price Index rose to 128.3 in April 2025, up 1% from March, driven by higher cereal, dairy, and meat prices. Sugar prices fell for the second month, pressured by strong Brazilian output, weaker demand, and currency shifts. Despite the uptick, overall food prices remain nearly 20% below their 2022 peak, according to the UN agency.
The FAO Food Price Index (FFPI) averaged 128.3 points in April 2025, up 1.2 points (1.0 percent) from March. Increases in the cereal, dairy and meat price indices outweighed decreases in those of sugar and vegetable oils. Overall, the FFPI was 9.0 points (7.6 percent) higher than its level a year ago but remained 31.9 points (19.9 percent) below its peak reached in March 2022, the United Nations’ Food and Agriculture Organization said on Friday.
The FAO Food Price Index (FFPI) is a measure of the monthly change in international prices of a basket of food commodities.
According to the report, the FAO Sugar Price Index averaged 112.8 points in April, down 4.1 points (3.5 percent) from March, marking the second consecutive monthly decline, and standing 13.8 points (10.9 percent) below its level in April 2024. The drop in world sugar prices was largely driven by concerns over the uncertain global economic outlook and its potential impact on demand from the beverage and food processing sectors, which account for the bulk of global sugar consumption. Larger-than-expected sugar output in Brazil in the second half of March added further downward pressure. Furthermore, the depreciation of the Brazilian real against the United States dollar and lower international crude oil prices contributed to the decline in world sugar prices.
The FAO Cereal Price Index averaged 111.0 points in April, up 1.3 points (1.2 percent) from March but still 0.6 points (0.5 percent) below its year-earlier level. The monthly increase reflected higher prices across all major cereals. Global wheat prices rose marginally, supported by tightening exportable supplies in the Russian Federation, steady export pace from some major exporters, and currency movements linked to a weaker United States dollar, particularly against the euro. However, trade policy developments and macroeconomic uncertainty limited the rise. International maize prices also increased, largely due to seasonally tighter stock levels in the United States of America and currency movements. Adjustments to the United States’ import tariff policies – including the exemption of Mexico, the leading importer of US maize, and a 90-day pause on import tariffs above 10 percent for several other trading partners – further contributed to the upward price pressure. Among other coarse grains, world prices of sorghum and barley also increased. Meanwhile, the FAO All Rice Price Index increased by 0.8 percent in April, as demand for fragrant varieties strengthened and the arrival of freshly harvested supplies diminished in Viet Nam, as the country’s main crop harvest entered its final stage.
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Source : ChiniMandi
