December 22, 2020
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Global trade slowing down during the pandemic, revival of demand with economies opening up among key reasons
The value of the FAO Food Price Index (FFPI) from the Food and Agriculture Organization of the United Nations stood at 105 points in November 2020.
This is the highest level of the index since it hit 105.15 in December 2014.
Furthermore, the index was up 3.9 per cent in November compared to the previous month, the biggest month-on-month rise since July 2012 when it increased 5.4 per cent.
Madan Sabnavis, Chief Economist, CARE Ratings, said that this surge is because of a demand-supply imbalance. Global trade had slowed down because of the restricted policies from different countries, goods did not move freely, which has created an artificial demand-supply imbalance, he noted.