World food prices continued to fall for the ninth month in a row

World food prices continued to fall for the ninth month in a row

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World food prices have been declining for the fourth month in a row, falling 1.9% in December compared to November, reported Food and Agriculture Organization of the United Nations (FAO).

“In December 2022, the FAO Food Price Index* (FPI) averaged 132.4 points, down 2.6 points (1.9 percent) from November; this decline has been going on for nine months now,” the report says.

However, for all of 2022, average food prices were 14.3% higher than in 2021, FAO stressed.

The organization said that in the last month of the year, export prices for wheat and corn fell against the background of the harvest in the southern hemisphere, as a result of which sorghum and barley also fell in price. At the same time, rice prices rose due to purchases from buyers in Asian countries and the strengthening of currencies against the dollar. In total, at the end of the year, the value of the grain price index amounted to a record 154.7 points, which is 17.9% higher than the results of 2021.

“The increase in the FAO Cereal Price Index in 2022 was driven by a variety of factors, including significant market disruption, increased uncertainty, higher energy and input prices, adverse weather conditions in some major supplying countries, and continued high global demand for food,” the FAO said.

On December 15, Russian President Vladimir Putin said that Russia continues to help the poorest countries by supplying them with food, while the West pulls the blanket over itself. Then he said that in the near future Russia was ready to transfer about 260,000 tons of fertilizers to needy countries free of charge.

Yesterday, January 5, Putin and Turkish President Recep Tayyip Erdogan also discussed the implementation of the grain deal. Putin reaffirmed Russia’s readiness to supply agricultural products to the poorest countries. “We are ready to assist, grind grain into flour at Turkish enterprises and supply it to underdeveloped African countries,” Erdogan added.

On July 22, representatives of Turkey and the UN signed separate agreements with representatives of Russia and Ukraine on the export of Ukrainian grain, as well as on assistance in the export of Russian grain and fertilizers. But soon the Russian authorities accused the West of non-compliance with the second part of the agreement, which concerns the memorandum between Russia and the UN. At the same time, the UN said that they were working on lifting restrictions that hinder the export of Russian agricultural products.

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