Rising Trade Tensions and Extreme Weather Drive Global Food Prices Up

Global food prices have risen for the first time in months due to Russia ending a grain deal with Ukraine and India restricting rice exports. The UN Food and Agriculture Organization reported a 1.3% increase in the FAO Food Price Index in July, driven by higher costs for rice and vegetable oil. Disrupted supplies from Russia and Ukraine have exacerbated a global food crisis, particularly in developing nations heavily reliant on imports. The recent trade ban on some varieties of non-Basmati white rice by India has further raised concerns about food security, as rice prices have reached their highest level since 2011. The rise in food commodity prices may prolong the lack of transmission of lower prices to consumers in developing countries.