FAO Warns Global Food Prices May Keep Rising After March Increase
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The UN Food and Agriculture Organization, FAO, has warned that global food price pressures may continue after its benchmark Food Price Index rose to 128.5 points in March 2026, up 2.4 percent from February. The increase marked a second straight monthly rise and pushed the index to its highest level since September 2025. FAO said all major commodity groups rose, including cereals, meat, dairy, vegetable oils and sugar, as higher energy costs linked to the escalation of conflict in the Near East fed into global markets.
FAO said the increase so far has been relatively modest because of broadly comfortable global cereal supplies, but warned that the risk would grow if the conflict persists. Reuters reported that FAO Chief Economist Máximo Torero said a conflict lasting beyond 40 days, combined with elevated input costs, could push farmers to use less fertilizer, plant less land or shift to less input intensive crops, affecting supply and prices through the rest of this year and into next year.
Among the main categories, sugar posted the sharpest monthly gain in March, rising 7.2 percent, while vegetable oils climbed 5.1 percent and cereals rose 1.5 percent. Wheat prices increased 4.3 percent because of worsening crop prospects in the United States and expectations of lower plantings in Australia due to fertilizer costs. Rice prices fell 3 percent, while meat prices rose 1 percent and dairy prices increased 1.2 percent.
FAO nevertheless said the global cereal situation remains broadly comfortable. In a separate update, it said world wheat and maize production in 2026 appears set to ease only modestly from high levels and remain above five-year averages, though war related pressure on energy, fertilizers and supply routes has added fresh uncertainty to the outlook.
