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After posting an increase two weeks earlier, wheat prices declined by 8 per cent globally in October, driving the decline in the cereal price index, according to the World Bank’s Food Security Update.
Wheat prices, however, were 17 per cent higher last month than in October last year.
Worldwide, food commodity prices went down in the third quarter of 2022 from their all-time highs in April.
However, domestic prices of wheat flour, called atta, continued to increase and reached new record levels in Bangladesh in September and were more than 70 per cent above their year-earlier levels, said the Food and Agriculture Organisation of the United Nations on October 12.
“The high domestic prices mostly reflect a slowdown in imports and high transportation costs, due to elevated prices of fuel.”
The agricultural, cereal, and export price indices declined in the last two weeks by 4 per cent, 3 per cent, and 10 per cent, respectively, said the World Bank.
Maize and rice prices remained relatively stable, closing 1 per cent point lower than two weeks ago, although they were 28 per cent and 10 per cent higher, respectively, than in October last year.
Maize and wheat prices were 33 per cent and 27 per cent higher, than in January 2021. Rice prices were 13 per cent lower.
Fertilizer prices fell in the third quarter of 2022 but remain at historically high levels.
“The decrease in prices reflects weak demand as farmers cut back fertiliser applications because of the high cost,” said the World Bank.
Fertilizer affordability is at its lowest since 2008-09.
“Increasing energy prices and policy measures, such as export restrictions, have contributed to limited global fertiliser availability.”
The World Bank also touched upon the Black Sea Grain Initiative.
Brokered by the United Nations and Turkish, the initiative was set up in July to reintroduce vital food and fertiliser exports from Ukraine to the rest of the world.
Ukraine, one of the world’s largest grain exporters, normally supplies around 45 million tonnes of grain to the global market every year. But following Russia’s invasion of the country, mountains of grains built up in silos, with ships unable to secure safe passage to and from Ukrainian ports, and land routes unable to compensate. This contributed to a jump in the price of staple foods around the world.
The Initiative has already moved more than 9 million tonnes of food and brought prices down around the world, which has been critically important for low- and middle-income countries, said the US government.
On Saturday, Russia announced it was suspending its involvement in the internationally-brokered deal. It came after it accused Ukraine of a “massive” drone attack on the Black Sea Fleet in Crimea.
Kremlin on Wednesday announced its return to the implementation of the deal.
(TDS)
