Food prices 3-yrs’low globally but double in BD

Nasiruddin Ahmed : Globally, food prices have been steadily falling. The average price of these commodities fell to a three-year low last February but the prices shoot up more than double in Bangladesh in two years.
This information has emerged in the monthly price report of the United Nations Food and Agriculture Organization (FAO). Market observers say that the production situation of agricultural products in the top exporting countries has taken a positive turn. The International Grains Council (IGC) has said that the global production of food grains this season may touch a record. Corn production is expected to be higher than expected, especially in South American countries. This is playing a major role in lowering prices.
The FAO food price index fell for the seventh consecutive month in February.
Major food grains have played a major role behind this. The prices of these products have come down significantly. But sugar and meat prices were on an upward trend.
FAO’s price index is based on the prices of the world’s most traded food commodities. The index averaged 117.3 points in February, compared to 118.2 points in the previous month.
According to FAO data, food grain prices fell by 5 percent compared to the previous month. Besides, it has decreased by 22.3 percent compared to the same period last year. Expectations of large-scale corn production, mainly in South American countries, and competitive export prices for Ukrainian corn provide logistics.
Vegetable oil prices fell by 1.3 percent in February compared to January. 11 percent decrease compared to February last year. Ample supplies in South American countries have helped keep prices down. Apart from this, the prices of mustard and sunflower oil also decreased due to adequate exports.
However, sugar and meat markets were in opposite trend. In February, FAO’s sugar index increased by 3.2 percent compared to the previous month. Prices rose as worries about new season production intensified in top producer Brazil. In addition, Thailand and India are also forecast to reduce production.