Decline in Sugar and Vegetable Oil Prices Leads to Drop in Global Food Price Index
By SpringsNewsNG | February 18, 2025
The global food price index has experienced a slight decline in January 2025, primarily due to drops in the international prices of sugar and vegetable oils. According to the Food and Agriculture Organization (FAO), the food price index dropped 1.6% compared to December 2024. However, the index is still 6.2% higher year-on-year, but 6% below the peak seen in March 2022.
Vegetable Oil and Sugar Prices Drop Significantly
The major contributor to the decrease in the global food price index was the 5.6% drop in vegetable oil prices, which was mainly driven by a decline in palm and rapeseed oil prices. Although other oils, such as soybean and sunflower oils, maintained their prices, the overall effect on the index was notable. Despite this drop, vegetable oil prices remain 24.9% higher year-on-year, according to FAO data.
Similarly, sugar prices saw a sharp 6.8% drop in January 2025 compared to the previous month, with prices still being 18.5% lower year-on-year. This decline was attributed to increased sugar supply following India resuming sugar exports and Brazil’s improved output, spurred by favorable weather conditions.
Meat and Cereal Prices Show Mixed Trends
The FAO’s Meat Price Index also saw a 1.4% decline in January 2025, largely due to lower prices of pig, ovine, and poultry meats. In contrast, the Cereal Price Index rose slightly by 0.3% month-on-month, though it remained about 6.9% lower year-on-year. While wheat export prices dropped marginally, maize prices increased due to reduced production and lower supply.
Impact on Nigeria’s Food Price Talks
As the global food price index fluctuates, Nigeria is currently in talks to reduce food prices domestically by focusing on increased agricultural production and better supply chains. The Nigerian government’s strategy includes boosting local agricultural output to counter rising food costs and reduce reliance on imported goods.
This dip in the global food price index could have positive implications for efforts to curb rising food costs in Nigeria and other nations heavily reliant on food imports. However, experts warn that global price dynamics remain volatile, and further measures may be needed to ensure food security.
