September 5, Kathmandu.
Global food prices have risen again. According to the United Nations Food and Agriculture Organization (FAO), the food price index reached 133.3 points in August. This is 1.9 percent higher than July and 2.5 percent higher than a year ago. This is the highest level since the end of 2022.
According to the FAO, the impact of rising food prices has been observed across all five major commodity groups. Extreme weather, geopolitical tensions, and disruptions in trade and shipping systems are increasing the supply risks of major agricultural products worldwide.
Stéphane Dujarric, Spokesperson for the UN Secretary-General, also stated that food prices have started to rise again due to weather-related risks. According to him, the main reason for the increase in the global food price index in August is the concern over supply raised by high temperatures and other weather-related risks.
Largest Increase in Sugar Prices
According to FAO data, the sugar price index saw the largest increase in August. Sugar prices rose by 11.9 percent in one month, reaching their highest level since June 2025. The FAO stated that prices rose due to growing concerns about global sugar supply in the 2026/27 production season. Excessive heat and dry weather in the European Union and some parts of Asia, the possibility of reduced sugar production in Brazil, and India’s decision to allow duty-free import of raw sugar have also contributed to the price increase.
Wheat and Maize Prices Also Rose
In August, the cereal (grain) price index rose by 2.2 percent. This is the highest level since May 2024. Wheat prices increased by 2.6 percent. Continuous disruptions in exports and shipping from the Black Sea region, estimates of reduced production due to heat and drought in some parts of Europe, and a weaker US dollar have been the main reasons for this.
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Similarly, maize prices rose by 2.5 percent. The FAO stated that concerns about reduced production in some areas of the United States and the European Union, strong demand from the ethanol and animal feed industries, and disruptions in exports from Ukraine have increased maize prices.
The vegetable oil price index also increased by 0.6 percent. This marks the third consecutive month of increase, reaching its highest level since June 2022. Meat prices rose by 1 percent, and dairy product prices increased by 2.3 percent. This is the first increase in dairy product prices after four months.
Production Remains High, But Risks Increasing
Despite the rise in food prices, the FAO Food Price Index for August is still 16.8 percent below the record level established in March 2022. The FAO has lowered its estimate for global cereal production in 2026 by 3.4 million tonnes compared to July. However, total production is still expected to remain historically high.
According to the FAO, global cereal production is estimated to reach approximately 2.98 billion metric tonnes in 2026. Although this would be the second largest production ever, it is about 2 percent less than last year.
Global cereal stocks are projected to reach 947.20 million tonnes by the end of 2026/27, which is 1.1 percent lower than previous estimates. The FAO stated that uncertainties are increasing in the global food market due to climate change-related risks, regional conflicts, and disruptions in shipping.
Despite high production, disruptions in the supply chain could create further pressure on food prices in the coming days. CCTV
For more: Global Food Prices Hit Highest Level
