Food Prices, Except Maize, Drop

viagra geneva; font-size: small;”>The World Bank’s Food Price Index decreased by 2 percent between February and June 2013, buy with sustained month-to-month declines from February to May.

“In June, the index remained at 12 percent below the recent all-time peak in August 2012, but is only 2 percent lower than a year ago.”

The July 2013 report reveals that the increased production, declining imports and increasing stocks are exerting downward pressure on export prices, but international prices remain tight for maize.

Food Price Watch attributes the improved weather conditions and weaker imports to the price decline in this quarter.

“As prices remain high and with recent price increases in May and June, uncertainties surrounding unstable weather conditions and domestic policy decisions among key food producers warrant close scrutiny.”

Prices of all the three main food categories declined between February and June 2013.

“Prices of grains in June were 2 percent lower than in February; 3 percent lower in the case of fats and oils; and 1 percent lower for others, which include sugar and meat, among others,” states the report.

In Uganda, the price of maize went down in the last year between 28 and 38 percent because of good supplies, and reduced export pressures.

Between February 2013 and June 2013, the largest declines in the price of rice took place in markets in the Democratic Republic of Congo (10 percent), Uganda (14 percent), and Tanzania (23 percent).

Food Price Watch also relates the political turmoil and dire economic situation in Egypt to the consequences on the international demand and prices of wheat since Egypt is the world’s top wheat importer.

It notes that between the 1950s and 1970s, developing countries used universal food subsidies as major components of their poverty alleviation strategies.

“However, lately, rising food prices and recurring price spikes have revived the popularity of such subsidies, leading countries with high poverty and weak safety nets to make food available at below-market prices – for example by subsidizing imports or giving vulnerable groups access to food discount stores.”

The price of internationally traded wheat dropped by 2 percent, after sustaining five consecutive monthly declines from December 2012 until its strong increase in May 2013.


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