In January, global food commodity prices experienced a notable decline, driven primarily by decreases in sugar and vegetable oils, according to data released by the Food and Agriculture Organization (FAO) on Friday
The FAO Food Price Index (FFPI) averaged 124.9 points in January 2025, down 2.1 points (1.6 percent) from its revised December level. Decreases in the price indices for sugar, vegetable oils and meat more than offset increases in those for dairy products and cereals. The overall index was 7.3 points (6.2 percent) higher than its corresponding level one year ago, however, it remained 35.3 points (22.0 percent) below the peak reached in March 2022.
According to the release, the FAO Sugar Price Index averaged 111.2 points in January, down 8.1 points (6.8 percent) from December and as much as 25.2 points (18.5 percent) from its value a year ago, reaching its lowest level since October 2022, when it averaged 108.6 points. The decline in January was mainly driven by improved global supply prospects for the ongoing 2024/25 season, following generally favourable weather in Brazil in recent months that benefited the sugarcane crops to be harvested from April 2025. Additionally, the decision by the Government of India to resume sugar exports after limiting them since October 2023 exerted further downward pressure on world sugar prices.
