World Food Price Index

2023 SEP 13

Preliminary   > Economic Development   >   Indian Economy and Issues   >   Reports and indices

Why in news?

  • The United Nations Food and Agriculture Organization (FAO) reported that the world food price index fell to a new two-year low recently.
  • This decline reversed a previous month’s rebound, with most food commodities experiencing decreases, although rice and sugar prices

About Food Price Index

  • FPI, released by the Food and Agriculture Organization (FAO) is a measure of the monthly change in international prices of a basket of food commodities.
  •  It consists of the average of five commodity group price indices:
    • Cereals, oilseeds, dairy products, meat and sugar
  • These five categories of commodities are selected for calculating FFPI due to their high and strategic importance in global food security and trade.
  • The index is calculated by averaging these five commodity group price indices, weighted by the average export shares of each group over the 2014-16 period


Food Price Index is released by:

(a) Food and Agriculture Organization

(b) UN World Food Programme

(c) International Fund for Agricultural Development

(d) World Bank