FAO food price index hits new record low

July 6th, 2012 - 2:04 pm ICT by IANS  

Rome, July 6 (IANS) The UN Food and Agriculture Organization (FAO) food price index fell to its lowest level since 2010, the Rome-based UN agency said in a statement.

The food price index in June fell to 201 points, dipping 1.8 percent from May to its lowest level since September 2010, the statement said, adding that it marked the third consecutive month of downward trend, reported Xinhua.

FAO said the average prices of all commodity groups in the index were below May levels, with the largest drop registered for oils and fats.

Continued economic uncertainties and generally adequate food supply prospects kept the index down although growing concerns over dry weather sent prices of some crops higher.

According to the organization, the overall supply and demand situation in 2012 and 2013 will remain adequate thanks to abundant supplies of rice, a leading food staple, and sufficient exportable supplies of wheat and coarse grains.

The FAO food price index is a measure of the monthly change in average international prices of a basket of 55 food commodities.

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