FAO’s Food Price Index

Why in news?

• Food and Agriculture Organization's (FAO) Food Price Index hit record high in February, UN agency reports.

About the index:

• It was introduced in 1996 as a public good to help in monitoring developments in the global agricultural commodity markets.
• The FAO Food Price Index (FFPI) is a measure of the monthly change in international prices of a basket of food commodities.
• It measures changes for a basket of cereals, oilseeds, dairy products, meat and sugar.
• Base Period: 2014-16.

PRACTICE QUESTION:

Which of the following items are covered under FAO Food Price Index?

1. Cereals

2. Vegetable Oil

3. Dairy products

4. Meat

5. Sugar.

Select the correct answer using the code given below:

(a) 1,3,4 and 5 only

(b) 2,3 and 4 only

(c) 1, 2 and 3 only

(d) 1,2,3,4 and 5

Answer