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Food Price Index Declined in August, While Rice Prices Spiked
The FAO Food Price Index fell by around 2 percent in August, driven by declines in cereal, vegetable oil, dairy, and meat indices. This decline placed the Index 24 percent below the peak seen in March 2022. The major exception was rice prices, which saw a significant increase in August.
IFPRI Policy seminar: Farm subsidies and international trade rules
The Uruguay Round of international trade negotiations, which started in 1986 and concluded in 1994, advanced trade liberalization and led to the formation of the World Trade Organization (WTO). The Uruguay Round Agreement on Agriculture (URAA) stands out as a hallmark, since it brought agriculture—until then mostly not covered by international trade disciplines—into a rules-based framework.
When Policy Responses Make Things Worse: The Case of Export Restrictions for Agricultural Products
When the global prices of staple commodities surge, some governments react immediately by imposing trade-restricting measures in order to insulate domestic prices from rising world prices. During the global food price crisis of 2007–2008, such behavior was observed among many governments, particularly in net food-exporting countries, in response to the impending food security shock. As many as 16 countries imposed some form of export restriction, such as a ban or export tax, on commodities including rice, wheat, maize, other grains, and vegetable oils.
Increased tensions in Ukraine again threaten the Black Sea Grain Initiative
On June 6, the Nova Kakhovka dam in southern Ukraine, located about 70 km upstream of Kherson, a port city on the Dnipro River, collapsed, sending an uncontrollable flow of water from its reservoir downstream. Futures markets reacting to the news sent wheat futures up almost 3 percent before falling back later that day.
Food Prices Continue Decline in May, But Concerns about Inflation Remain Strong
The FAO Food Price Index declined by 2.6 percent in May. Compared to May 2022 levels, the Index is 22.1 percent below its all-time high.