Kathmandu: Food prices in the global market have risen again, reaching their highest level since the end of 2022, according to the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index stood at 133.3 points in August, up 1.9 percent from July and 2.5 percent compared with the same month last year. This marks the highest level recorded since late 2022.
According to the FAO, the increase was recorded across all five major food commodity groups. Extreme weather conditions, geopolitical tensions, and disruptions to trade and transportation systems are increasing risks to the global supply of major agricultural commodities.
UN Secretary-General’s spokesperson Stephane Dujarric also said that weather-related risks have contributed to the renewed rise in global food prices. He noted that concerns over supplies, driven by high temperatures and other weather-related risks, were among the major factors behind the increase in the global food price index in August.
Sugar Prices See Sharpest Increase
According to FAO data, sugar prices recorded the largest increase in August. The sugar price index rose by 11.9 percent in one month, reaching its highest level since June 2025.
The FAO attributed the increase to growing concerns over global sugar supplies during the 2026/27 production season. Extremely hot and dry weather in parts of the European Union and Asia, expectations of lower sugar production in Brazil, and India’s decision to allow duty-free imports of raw sugar also contributed to the rise.
Wheat and Maize Prices Also Rise
The FAO cereal price index increased by 2.2 percent in August, reaching its highest level since May 2024.
Wheat prices rose by 2.6 percent, driven mainly by continued disruptions to exports and transportation from the Black Sea region, expectations of lower production due to heat and drought in parts of Europe, and a weaker US dollar.
Maize prices also increased by 2.5 percent. The FAO said concerns over lower production in parts of the United States and European Union, strong demand from the ethanol and animal-feed industries, and disruptions to exports from Ukraine contributed to the rise.
The vegetable oil price index increased by 0.6 percent, marking its third consecutive monthly rise and reaching its highest level since June 2022.
Meat prices increased by 1 percent, while dairy prices rose by 2.3 percent, marking the first increase in dairy prices after four months.
Global Production Remains High, but Risks Are Growing
Despite the rise in food prices, the FAO Food Price Index in August remained 16.8 percent below its record level reached in March 2022.
The FAO has lowered its forecast for global cereal production in 2026 by 3.4 million metric tons compared with its July estimate. However, total production is still expected to remain historically high.
According to the FAO, global cereal production in 2026 is projected to reach around 2.98 billion metric tons. Although this would be the second-highest production level on record, it is approximately 2 percent lower than last year.
Global cereal stocks are projected to reach 947.2 million tons by the end of the 2026/27 season, 1.1 percent lower than previously estimated.
The FAO said uncertainty in global food markets is increasing due to climate-related risks, regional conflicts and disruptions to transportation and supply chains.
Although global food production remains high, disruptions in supply chains could create additional pressure on food prices in the coming months, raising concerns for consumers and food-importing countries around the world.
