FAO Food Price Index rises to 133.3, highest since November 2022
Where it stands
The Food and Agriculture Organization (FAO) released its Food Price Index for August 2026 on 4 September 2026. The index averaged 133.3 points, up 1.9 per cent from July. The index was 2.5 per cent above August 2025. The reading is the highest since November 2022. The index remains 16.8 per cent below its March 2022 peak. All five sub-indices rose. Sugar jumped 11.9 per cent. Cereals rose 2.2 per cent to their highest since May 2024. FAO cited hot, dry weather in Europe and disrupted Black Sea shipping. FAO cut its 2026 world cereal production forecast to 2,980 million tonnes. India's retail food inflation was 5.52 per cent in July 2026.
Background
The FAO Food Price Index measures the monthly change in international prices of a basket of food commodities. The index is the average of five commodity group indices: cereals, vegetable oils, dairy, meat and sugar. FAO weights each group by its average share of world food exports in 2014–2016. The average price level of 2014–2016 equals 100. A reading of 133.3 means prices are 33.3 per cent above that level. FAO publishes the index once a month, usually on the first Friday. The index peaked in March 2022. The index fell to 117.4 points in February 2024. The index has risen since then.
How it developed
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7 August 2026, 1:30 pm ISTHow it started
FAO's July index rose to 131.1 points on 7 August 2026
FAO released its Food Price Index for July 2026 on 7 August 2026. The index averaged 131.1 points, up 0.6 per cent from June. FAO later revised the July figure to 130.8 points. The cereal index rose 3.4 per cent in July. Wheat prices rose 5.8 per cent on Black Sea export disruptions and heatwaves. Vegetable oils rose 2.0 per cent to their highest since June 2022. Sugar rose 5.6 per cent. Meat fell 2.8 per cent from a record high in June. On 20 August 2026 India allowed duty-free import of 10 lakh tonnes of raw sugar until 31 October 2026. Domestic sugar prices had reached record levels.
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4 September 2026, 1:30 pm ISTNew fact
August index rose to 133.3 points. All five sub-indices rose.
FAO released the August 2026 index on 4 September 2026. The index averaged 133.3 points, up 1.9 per cent from July. Sugar jumped 11.9 per cent to 106.4 points, its highest since June 2025. FAO cited hot, dry weather in Europe's sugar beet areas, lower output in Brazil and India's duty-free imports. Cereals rose 2.2 per cent to 116.3 points, the highest since May 2024. Wheat prices were 15.0 per cent above a year earlier. Vegetable oils rose 0.6 per cent to 196.9 points, the highest since June 2022. Dairy rose 2.3 per cent and meat 1.0 per cent.
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4 September 2026Settled
FAO cut its 2026 cereal forecast. India's July food inflation was 5.52 per cent.
FAO also released its Cereal Supply and Demand Brief on 4 September 2026. FAO now forecasts 2026 world cereal production at 2,980 million tonnes. The forecast is 2.0 per cent below 2025, the largest annual fall since 2018. The harvest would still be the second largest on record. In India, the Ministry of Statistics put food inflation at 5.52 per cent for July 2026. Food inflation was 5.32 per cent in June 2026. India's duty-free sugar import window runs until 31 October 2026. The next FAO index is due on 2 October 2026.
Why it matters for UPSC
For GS3, remember that the FAO index tracks international export prices, not prices in Indian markets. India's food inflation comes from the Consumer Food Price Index of the Ministry of Statistics. An index is not a price. The reading of 133.3 means world food prices are 33.3 per cent above the 2014–2016 average. FAO is a specialised agency of the United Nations, based in Rome. FAO's cereal number is a forecast, not a harvest result.
Key terms
Sources (8)
- Food and Agriculture Organization of the United Nations · official · FAO Food Price Index edges up amid weather, energy and geopolitical concerns (7 August 2026)5 Sep, 2:50 am
- Business Standard · Govt allows 1 mn tonnes of raw sugar imports to curb domestic price rise (20 August 2026)5 Sep, 2:50 am
- ANI · Centre allows duty-free import of 10 lakh metric tonnes of raw sugar till Oct 31 (20 August 2026)5 Sep, 2:50 am
- Food and Agriculture Organization of the United Nations · official · FAO Food Price Index rises in August amid broad-based increases, led by sugar (release date 4 September 2026)5 Sep, 2:50 am
- Business Standard · World food prices rise in August to their highest since late 2022: FAO (Reuters, 4 September 2026)5 Sep, 2:50 am
- Xinhua · Global food price index hits highest level in over three years in August: FAO (4 September 2026)5 Sep, 2:50 am
- Food and Agriculture Organization of the United Nations · official · FAO Cereal Supply and Demand Brief: Global cereal production forecast lowered; uncertainty persists over Black Sea export flows (4 September 2026)5 Sep, 2:50 am
- Ministry of Statistics and Programme Implementation · official · Press Release of Consumer Price Index on Base 2024=100 for July, 2026 (12 August 2026)5 Sep, 2:50 am