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11 August 2013 | Ceri Allan
The price of sugar has dropped 16 per cent during the past year due to lower demand from importers resulting in an increase of stock, according to the World Bank.
A report showed prices of three main food categories (grains; fats and oils; and other, which includes sugar and meat) have declined for the third consecutive quarter since the peak of August 2012.
The price of rice has also fallen by 10 per cent and soybean oil by 12 per cent. This is said to be due to improved weather conditions and weaker imports.
Wheat prices have been volatile in the past few months, and the global wheat price has seen a significant increase of 13 per cent since June 2012. Expectations are that world production will rebound this year, after last year’s declines due to drought in the US. In El Salvador the price of wheat is 95 per cent higher this June than 12 months ago.
Maize production is set to reach a new record high this year, with substantial increases in the US due to an expansion of planting. Price increases of up to 135 per cent have occurred in some monitored markets in Malawi, due to high inflation and currency devaluation.