Global Sugar and Grain Prices Rise, Putting Pressure on Kyrgyzstan

The world’s food markets moved sharply higher in August, led by sugar, grain and dairy products. The Food and Agriculture Organization’s food price index rose 1.9 percent from July to 133.3 points, reaching a level 2.5 percent above August 2025.

Sugar recorded the steepest increase, with its index jumping 11.9 percent in a month. The article attributes the rise to drought in Europe, the effects of El Niño in Asia and lower sugar production in Brazil. Grain prices also advanced, with wheat up 2.6 percent, corn up 2.5 percent and rice up 0.5 percent.

Wheat prices stood 15 percent above their 2025 level, reflecting drought in Europe and export problems in the Black Sea region. Dairy prices rose 2.3 percent as milk yields fell in the European Union during an unusually hot period. Vegetable oils increased 1.1 percent, while the meat index gained 1 percent. Beef prices declined even as pork, poultry and lamb became more expensive.

The FAO’s revised figures put global grain production in 2026 at 2.98 billion tonnes, 2 percent below the 2025 result. Wheat production is forecast at 810.7 million tonnes, down 3.8 percent, while corn output is expected to reach 1.309 billion tonnes and rice production 553.1 million tonnes, a 1.9 percent decline.

For Kyrgyzstan, which relies heavily on imports of sugar and grain, rising global prices could feed directly into the domestic food market. Higher grain prices may push up the cost of flour, animal feed and baked goods during the autumn and winter. The development comes as the Cabinet has raised its annual inflation forecast to 14% to 15% because of continuing external shocks.