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The FAO Food Price Index remained virtually unchanged month-to-month in September and almost 24 percent lower than the peak reached in March 2022.

India’s import demand for edible oils has been significant over the past decade, with imports averaging $11.6 billion annually. In 2021, prior to the Russia-Ukraine conflict, India imported a staggering $17.1 billion of edible oils (Figure 1), dominated by palm oil ($9.6 billion), soybean oil ($4.8 billion), and sunflower/safflower oils ($2.4 billion).

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.

We are witnessing important setbacks in the open, international trade system that has driven prosperity around the world and lifted billions of people out of poverty in developing countries. Geopolitical tensions, on the heels of earlier trade wars—and accentuated by shocks such as the pandemic, disruptions in supply chains, and climate events—are heightening the risk of economic fragmentation.

While the FAO Food Price Index saw a minor increase in July, it remains 16 percent below its July 2022 levels. Rising vegetable oil prices drove the month-to-month increase.