Global food prices remain unchanged in March

NEW DELHI: World food prices remained almost same in March from their levels in February due to stable prices in most commodities and decline in dairy prices, United Nations' Food and Agriculture Organisation said.

"World food prices in March remained virtually unchanged from their February levels," Food and Agriculture Organisation ( FAO) said in a statement.

Amongst various commodity groups, only oil prices showed strength, compensating for falling dairy quotations, while the indices of cereals, sugar and meat prices were largely unchanged from last month's level, it added.

The FAO Food Price Index (FPI) averaged 216 points in March, compared to 215 points in February.

FPI is a monthly measure of the change in international prices of cereals, oilseeds, dairy products, meat and sugar.

Global food prices had risen for the second consecutive month in February, driven by high prices of sugar, oils and cereals due to rise in imports and unfavourable weather, which supported prices.

FAO said the scenario is positive in the case of cereals and wheat stocks.

"The forecast for world cereal carryover stocks in 2012 has been raised by 1 million tonnes over the previous month to 519 million tonnes. Much of the upward revision relates to expectations of higher rice inventories," said the United Nations specialised agency.

The production forecast for wheat in 2012 remains at 690 million tonnes, 1.4 per cent below the record in 2011 and unchanged from last month.

In spite of this decline, world wheat supplies in 2012-13 would still exceed the projected need because of large inventories, FAO added.