Agricultural Inputs

The realities of a changing climate are becoming increasingly clear, with temperatures rising around the world and extreme weather events, like flooding and droughts, becoming more and more frequent. April 2025 was the second hottest April globally on record, and evidence suggests such anomalous high temperatures could become the norm rather than the exception.

The FAO Food Price Index fell marginally in May but remained 6 percent higher than its May 2024 level. The decline was driven by falling cereals, sugar, and vegetable oils prices.

Fertilizer is a critical input for agricultural productivity, and its increased use has been closely associated with rising agricultural yields in many countries. In developing economies that rely heavily on fertilizer imports and are home to vulnerable smallholder farmers, fertilizer price spikes can pose serious risks. When farmers lack access to effective risk-sharing mechanisms, sudden or excessive increases in fertilizer prices can discourage adoption, disrupt planting decisions, and reduce productivity.

The FAO Food Price Index rose 1 percent in April, driven by increasing cereal, dairy, and meat price. While the Index was 7.6 percent higher than its April 2024 level, it remains nearly 20 percent lower than the record reached in March 2022.

The FAO Food Price Index remained stable in March, with falling cereal and sugar prices balancing rising meat and vegetable oil prices. The Index was almost 7 percent higher than its March 2024 level but still remains significantly below March 2022 levels.