Food prices to rise further globally if West Asia crisis stretches beyond 40 days: FAO

NEW DELHI: World food commodity prices rose in March for the second month in a row, largely due to higher energy prices linked to the conflict escalation in West Asia, the Food and Agriculture Organization of the United Nations (FAO) said on Friday.

The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally-traded food commodities, averaged 128.5 points in March, up 2.4 percent from February and 1.0 percent above its level a year ago.

“Price rises since the conflict began have been modest, driven mainly by higher oil prices and cushioned by ample global cereal supplies,” said FAO Chief Economist Maximo Torero.

 “But if the conflict stretches beyond 40 days with high input costs with current low margins, farmers will have to choose: farm the same with fewer inputs, plant less, or switch to less intensive fertiliser crops. Those choices will hit future yields and shape our food supply and commodity prices for the rest of this year and all of the next,” Torero added. (IANS)

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