March food prices at nearly 7-year high: UN body

The FAO Food Price Index averaged 118.5 points this March, up 2.4 points or 2.1% from a month ago, led by strong gains in the vegetable oil, meat, and dairy sub-indices, while those of cereals and sugar subsided, Anadolu Agency reports.

This figure is a trade-weighted index that tracks the international market prices of five major food commodity groups.

The vegetable oil price index surged 8% month-on-month to hit a nearly 10-year high in March, with soy oil prices rising sharply due in part to the prospects of firm demand from the biodiesel sector.

The FAO Dairy Price Index rose 3.9% from the previous month, with butter prices buoyed by somewhat tight supplies in Europe associated with increased demand in anticipation of a food-service sector recovery.

Last month, the meat price index rose 2.3% from February, with imports by China and a surge in internal sales in Europe.

The FAO Cereal Price Index dropped 1.8% on a monthly basis this March, but it is still 26.5% higher than in the same month last year, it said.

Still more than 30% above its year-earlier level, the sugar price index also slipped 4.0% during the same period, triggered by prospects of large exports from India.