Global food price index at a ten-year high

New Delhi: Global food prices rose for the fourth consecutive month in November, hitting a ten-year high. The rise was driven by strong demand for wheat and dairy products, the UN Food and Agriculture Organization said.

The Food and Agriculture Organization's (FAO) Food Price Index, which tracks the international prices of the world's most traded food commodities, averaged 19.20 points in November. The October figure was 13.20.

The November index is the highest since June 2011. On an annual basis, the index has risen by 2.50%. Prices of agricultural commodities rose sharply last year. Declining harvests and strong demand resulted in stronger prices.

The FAO's serial price index rose 5.10 per cent in November compared to October. On an annual basis, the growth was 6.50%. Wheat prices have reached their highest level since May 2011.

Uncertainty over unseasonal rainfall in Australia and possible changes in export measures in Russia have supported wheat prices. The Dairy Price Index also rose by 2.50% compared to October. The index was boosted by higher global demand for butter and milk powder, the FAO said in a statement.

The global cereal production estimate for 2031, which was set at 4.5 billion tonnes a month ago, has been slashed to 5.21 per cent. Estimates have been reduced keeping in view the demand and supply of cereals.