Food and Agriculture Organization\u2019s(FAO) World food price Index averaged 159.3 points in March 2022 breaking an earlier record of 137.6 points scaled 11 years ago in February 2011.<\/span><\/p>\n Released by: <\/b>Food and Agriculture Organization(FAO) since 1996.<\/span><\/p>\n Aim:<\/b> To help in monitoring the developments in the global agricultural commodity markets.<\/span><\/p>\n Purpose: <\/b>The index is a measure of the monthly change in international prices of a basket of food commodities.<\/span><\/p>\n Commodities: <\/b>It consists of the average of five commodity group price indices. Such as cereal, vegetables, dairy, meat and sugar. Also, these five indices is given weightage based on the average export shares.<\/span><\/p>\n Base Year:<\/b> 2014-16.<\/span><\/p>\n The World Food Price Index has shown huge volatility in the last two years due to the Covid-19 pandemic and now the Russia-Ukraine war.<\/span><\/p>\n The index had crashed to a four-year low in 2020 due to demand destruction triggered by pandemic-induced lockdowns across countries.\u00a0<\/span><\/p>\n But as demand returned with governments lifting economic activity and movement restrictions, supply chain disruptions came to the fore. These disruptions worsened after the <\/span>port closures in the Black Sea and Azov Sea, plus Russian banks being cut off from the international payments system.<\/span><\/p>\nWhat is the World Food Price Index?<\/b><\/h5>\n
Why is the World Food Price index at an all-time high?<\/b><\/h5>\n