Despite dire predictions of famine caused by the effects of global warming, for the fourth year in a row international food prices dipped by 19 per cent in the last year, the fourth consecutive annual fall, due to substantial decline in dairy, sugar and veg oil prices according to the United Nations food agency.
The maximum fall was witnessed in dairy prices, which fell by 28.5 per cent compared to 2014, marking its lowest since 2009. It was followed by sugar prices, which were down by 21 from 2014 levels, as per the FAO price index.
Similarly vegetable oil prices also came down last year by 19 per cent in comparison to 2014 prices, while cereal prices fell by 15.4 per cent in 2015. The meat prices also came down by 15.1 per cent in the last year.
Abundant supplies in the face of a timid world demand and an appreciating US dollar are the main reasons for the general weakness that has dominated food prices in 2015, the Food and Agriculture Organisation said in its monthly food price index.
“Over the full year, the index has averaged 164.1 points, nearly 19 per cent less than in 2014, marking the fourth consecutive annual decline,” the Food and Agriculture Organisation (FAO) said.
The FAO food prices index averaged 154.1 points in December 2015, down 1.5 points (1 per cent) from its revised November value, with international prices of all the food commodities used in the calculation of the Index falling, except for sugar and oils.
FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices, weighted with the average export shares of each of the groups for 2002-2004.