FAO Reports Modest Rise in Global Food Prices in June Amid Surges in Meat, Dairy, And Vegetable Oils
SDG 2: Zero Hunger
SDG 12: Responsible Consumption and Production
Institutions: Ministry of Agriculture & Farmersβ Welfare; Ministry of Consumer Affairs, Food & Public Distribution
The FAO Food Price Index averaged 128.0 points in June 2025, marking a 0.5 percent increase from May 2025. Prices for cereals and sugar fell, but these declines were more than offset by rising prices for dairy products, meat, and vegetable oils. Juneβs index was 5.8 percent above the level a year earlier, though still far below its March 2022 peak.
Breaking it down by sub-indices, the Cereal Price Index dropped by 1.5 percent due to falling prices of maize, sorghum, and barley, despite increases in wheat linked to weather concerns in the EU, Russia, and the USA; rice prices dipped slightly for Indica varieties.
The Vegetable Oil Price Index rose 2.3 percent, buoyed by nearly 5 percent gains in palm oil amid strong global demand, and increases in soy and rapeseed oils driven by biofuel demand and supply constraints.
The Meat Price Index increased 2.1 percent to a new all-time high, as bovine, pig, and ovine meat prices rose; poultry prices continued to fall.
The Dairy Price Index rose by 0.5 percent, with butter reaching record highs due to tight supplies in Oceania and the EU, and strong Asian demand; cheese prices rose for a third consecutive month, while milk powder prices dropped.
Sugar prices fell by 5.2 percent - the fourth straight monthly decline - hitting the lowest level since April 2021 amid improved production forecasts in Brazil, India, and Thailand.
Additionally, FAO forecasts global cereal production for 2025 to reach a record 2,925 million tonnes - 0.5 percent higher than the previous projection and 2.3 percent above 2024 - driven by improved outlooks for wheat, maize, and rice, though hot, dry weather in some regions could impact yields.
Relevant question for policy stakeholders: How can India enhance its food price monitoring and buffer mechanisms to better manage price volatility across key commodities - such as meat, dairy, and vegetable oils - especially in light of shifting global price drivers and domestic supply sensitivities?
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